Altcoins Weekly Losses Grow as Market Liquidations Continue
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Cryptocurrencies face market corrections days into 2024 based on several factors ranging from trader gripping reports, a fake spot Bitcoin (BTC) ETF social media post, and other factors.
On-chain data shows declining asset prices in the second week of the year, especially around altcoins with multiple assets posting over a 10% plunge in the last seven days.
Solana (SOL), which had a high-flying December, temporarily displaced BNB as the fourth most popular cryptocurrency by market capitalization after it surged over 60% within weeks last month.
Despite growing metrics in terms of decentralized exchange (DEX) volumes, the asset fell 10.64% in the last week and 3% in the past 24 hours. However, gains from its bullish drive can still be seen in the last 30 days holding a 34% growth.
Ripple (XRP) remains in the red zone with an 11.59% loss in the past week and 1% in the last 24 hours. Although the coin recorded entries in the last quarter of 2023, it hovers around a 10% decline in the last 30 days.
On the other hand, BNB has recorded a much better performance in the last month as it regained its fourth spot by market capitalization. The asset is up by 24% in the last 30 days as Binance spot volumes increase on the back of renewed institutional investment in the market and as assets crawled out of the woods.
Altcoins Cardano and Avalanche in similar waters
Cardano (ADA) and Avalanche (AVAX) posted bigger losses of 18.33% and 16.47%, respectively, as wider liquidations continued. Notably, both assets have increased volumes coming out of the bearish run sparked by industry collapses in 2022 and macroeconomic factors.
On one hand, Cardano’s numbers grew with slightly higher institutional products as new investors trickled in. Its developmental roadmap also attracted more users, with the community doubling down on the asset being the ETH killer as the leading altcoin struggled on the institutional front.
AVAX Soars Over 22% as Traditional Firms Increase Tokenization Efforts
Avalanche (#AVAX) has surged over 22% in the last seven data following partnerships with top financial giants to explore real-world asset tokenization.#CryptoNews #news https://t.co/igydW2goUm
— Cryptonews.com (@cryptonews) November 20, 2023
Avalanche had a massive uphill run in 2023 on the back of real-world asset tokenization drive that saw multiple traditional institutions adopt the network to partner in related efforts.
Ether holds still
While liquidations continue across the market, Ethereum remains the only altcoin ranked in the top 20 by market capitalization that holds on to a gain in the last seven days.
At press time, Ethereum trades at $2,405, a 5% gain in the last 24 hours and a slight 1.2% rise in the last seven days. Ethereum has also seen rising values in its intuitional products as the asset notched $30 million in inflows in the first week of the year, continuing its turnaround in December.
According to most commentators, the reasons for the massive liquidations are initially linked to the Matrixport report that BTC ETF applications will be rejected in January and the liquidations around the Securities and Exchange Commission’s (SEC) X (Twitter) account hack that led to a fake post on an ETF approval.
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