Top 10 Cryptocurrencies Suddenly “Free Fall”-Information Technology
The top 10 cryptocurrencies – including Stablecoins, Bitcoin, Ethereum, BNB, XRP, Solana or Cardano – have been in free fall, losing their value miserably within the past few days.
The cryptocurrency market has crashed in the past few days, causing what Forbes magazine (USA) describes as a trillion-dollar cryptocurrency crisis.
According to tech magazine Slash Gear, the domino effect affects both “stable cryptocurrencies” like Stablecoins, Bitcoin or Ethereum.
Stablecoin Luna free-falled from $118 to $0.09 over the course of a month. This drop is unusual, out of control and unpredictable. Some experts warn that the “ripple” effect is just beginning while others try to calm the market.
However, the top 10 cryptocurrencies — including Stablecoins, Bitcoin, Ethereum, BNB, XRP, Solana, and Cardano — suffered a massive drop, losing 22% of their value in just 24 hours, according to Forbes.
The Fall of Stablecoins
The collapse of Stablecoin Luna. Photo: Bloomberg
Unstable cryptocurrencies such as Bitcoin and Ethereum, are known to drop easily. But this crypto crisis is special, as it seems to be driven by an unusual factor: the collapse of stablecoins.
Stablecoin works on Blockchain technology, it is gaining attention in recent years due to its flexibility, speed and fixed value. It is usually set at around 1 USD per token. Called “digital USD”, they have become popular assets for many people and financial institutions around the world.
The collapse of stablecoin Luna created a panic and made it difficult for the public perception and belief in the idea of the stablecoin concept. Tether, USDT – the largest stablecoin on the market – lost 5% of its value, dropping from 1 USD to 95 cents.
Nicholas Bonnet, an Aplo crypto broker, told CNBC that traders are exploiting Tether’s drop “basically buying the token for less than $1 and then exchanging it for a dollar.” “.
Secure other Stablecoins
Users are following the crypto market with smartphone. Photo: Shutterstock
Tether chief technology officer Paolo Ardoino has been trying to reassure the market, ensuring all Tether holders will always receive $1 in tokens when they withdraw them, according to CNBC. He added 300 million Tether tokens were withdrawn in the last 24 hours. The price of other stable coins like DAI or USDC, remains at 1 USD.
Cryptocurrency analyst Yuya Hasegawa believes that Bitcoin price may still continue to decline due to the situation of “UST [Tether] and technical sentiment deteriorated.” FX Street again stated that Bitcoin @TheRealPlanC and @decodejar have fallen to floor prices and are on the way to recovery.
Bitcoin price fell miserably as the crypto market crashed. Photo: Shutterstock
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