The market capitalization got hit by volatility once again today. Although the overall market capitalization has shown signs of major improvement when it climbed up from almost a valuation of $200 billion to $222 billion (Valuation as of press time) but the currencies have shown depreciation in their valuation in the 24 hour period.
The overall market cap reached a valuation of $228 billion yesterday but got bullied by the hands of volatility once again in a span of one day. Currencies like XRP, which were on a surge spree last week also came down. 2 days ago, XRP rose to almost 50%, now instead of following the momentum trend, the currency is down by a negative growth factor of -9.99%.
Bitcoin, which was on the verge of touching $6,800 trading rate also plunged to under $6,600, hitting the lows of $6,598 as of press time with a negative growth rate 2.23% in 24 hours.
The volatility and instability of the market is worrying investors for quite a time. The problems relating to volatility are tied to the formation of the exchange trade fund by analysts and experts. The SEC is being skeptical when it comes to the approval of the ETF, as they think that the market is suffering from problems like manipulations, volatility and fraudulent activities. The formation of an ETF is a subject of utmost necessity in the crypto world right now.
Another factor that ties to the market with stability is the institutional recognition, platforms like Bakkt are contributing to the cause by getting the attention of multiple institutions in the crypto world to an extent that some analysts are deeming this institutional recognition of more value than the formation of ETF. David Gokhstein previously told BlockPublisher that,
Bakkt would help the market long-term. ETF is nothing but short-Term play.
Some people are looking forward to the formation of more stable coins rather than volatile currencies for a utility purpose and a better store of money rather than investments. Thomas Power, the board member of 9 spokes told BlockPublisher that,
Blockchain community failed to engage the old money, Fiat Crypto is the most likely solution.
Following the statement of Thomas Power, looking at Tether the USD tied cryptocurrency still stands close to the dollar, trading at $0.999 and seems like a better and stable option for utility.