Cryptocurrencies Show up for 35% Gains After Majority of Traders Capitulate

cryptocurrencies

Cryptocurrencies are slowly recovering after worst weekend of trading in industry’s history

As U.Today previously mentioned, the past weekend saw one of the worst trading days in digital asset history as large institutional investors dumped thousands of Bitcoins into an illiquid market and provoked a fall under the ATH 2017, which was previously considered an unbreakable support zone.

The biggest gainer in the top 100 cryptocurrencies sorted by market capitalization is the Synthetix decentralized finance protocol that offers exposure to crypto and non-crypto assets via synthetic tokens.

The platform’s underlying token, SNX, has gained more than 66% in value in the past 24 hours compared to being up more than 100% a while ago. Such a rise in the price of the token is most likely related to the skyrocketing funding rate of SNX following the increase in short selling volume.

Other cryptocurrencies like AAVE and AVAX are also showing double-digit gains as traders get back to using decentralized finance platforms.

Investors bet on lower capitalization assets

The market rally is often followed by larger inflows into lower cap assets like STEPN, 1INCH and others. The main reason is profit maximization through the higher growth rate of assets with lower liquidity and volume.

The main drawback of such a strategy is tied to greater risks since, in the case of a reversal, the lowcaps will lose more from their value compared to top-tier cryptocurrencies like Bitcoin or Ethereum, which remain extremely volatile compared to more traditional types of assets like stocks and bonds.

At press time, Ether and Bitcoin are trading at $1,124 and $20,470 respectively, gaining around 2-3% in their values ​​over the past 24 hours.

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