The market cap surprisingly fell down to about $275 billion in a single day when all of the market faces depreciation in their prices to surprising factors.
Not only the dominating currencies i.e Bitcoin, Ethereum, Ripple e.t.c suffered in the depreciation event, but 96 out of the top 100 crypto currencies suffered the loss. An overview of the coin market shows that almost all of the currencies turned the overall market red with huge depreciation factors.
As shown in the picture, almost all of the crypto currency has seen depreciation factors, which on average are near 4% in the span of 24 hours!
Not only have the indivudual cryptocurrencies suffered, but the whole market cap has fell down to by $20 billion in a single day. According to Coinmarketcap
As the graph shows, the coin market capitalization, which saw stable healthy numbers for the last three days, but then with a steep slope, fell from $294 million to $275 million in just a day. Before that, the market was standing at $304 million. The suspiciously high depreciation factors point towards the collapse of the lower currencies.
In the course of two days, the cryptocurrencies have seen constant depreciation with no signs of greens in the overall market cap. Is this the time when most of the crypto market falls to zero? According to Goldman Sachs, “..because of the lack of intrinsic value, the currencies that don’t survive will most likely trade to zero.”
The noble prize winning economist Paul Krugman had a similar opinion regarding crypto currency, he said in his column in New York Times:
Cryptocurrencies, by contrast, have no backstop, no tether to reality. Their value depends entirely on self-fulfilling expectations – which means that total collapse is a real possibility. If speculators were to have a collective moment of doubt, suddenly fearing that Bitcoins were worthless, well, Bitcoins would become worthless.
He also added that “crypto is a pure bubble, which will eventually deflate to nothing”
Apart from Verge, Binance coin, Metaverse ETP, and Tether, all coins in the top 100 cryptocurrencies have seen a plunge. The top cryptocurrency has also plunged by a depreciation factor of -5.07%. It was only a few days ago when the coin rebounded from the bottom (Around $6,000) and made its way, crossing the $8,000 barrier. The currency saw blooming spring days for almost the whole month with almost a growth factor of 39%, but ever since the depreciation has started, it landed back and is traded at $7,640 at press time. But since the coin market cap saw a depreciation as a whole, there wasn’t any surprising changes in the dominance of bitcoin on the total market. It still dominates with a factor of 48.18%. Falling close behind is ethereum which has the total market capital of 15.80%.
Ethereum hit the week’s high on 26th of July, hitting $483 and has ever since depreciated. The currency found a stable spot for three days, averaging at about $465 but the coin market’s depreciation dragged the currency down to the week’s lowest, 426$
Quite similar to the trends followed by Bitcoin and Ethereum, XRP also found a peak earlier this week and became stable for a few days but then depreciated horribly.
Following similar trends, almost all of the cryptocurrency walked on the same patterns of rising, stabilizing and falling.
Top gainers and losers
The top currencies, however, weren’t the ones who suffered the main loss. There were lower currencies who depreciated their market values to almost zero with ridiculous depreciation factors that average near -17%. For example, NPXS fell down by a factor of -17.94% and is now trading at $0.002456.
Although the market capital fell down to a considerable amount, there were still some currencies who saw the light of day and saw a nominal amount of growth, for example muscling its way through the decreasing prices, BNB grew by a factor of almost +5.51% and is being traded at $13.90.
The volatile nature of cryptocurrencies is an undeniable fact and where they see signs of growth, they also fall by considerable amounts, however, saying that the cryptocurrencies will collapse and are worthless are bold statements to make as most experts see these currencies as the “future”. Although they have no intrinsic value, like gold or fiat currencies, the potential shown by cryptocurrencies and the amount of startups that build on top of these currencies are phenomenal.