Altcoins
CRO Price in a Downward Spiral as Cronos TVL Sinks
CRO price came under intense pressure on Thursday as cryptocurrencies recoiled. Cronos dropped to a low of $0.056, where it has been in the past few days. It has plunged by more than 95% from its all-time high. This decline has seen its total market cap plunge to about $1.45 billion.
Cronos ecosystem activity slips
Cronos is the blockchain network for Crypto.com, the giant crypto exchange. Unlike FTX Token, CRO has real utility in that it is used to power a relatively sizable ecosystem. Its ecosystem is made up of projects like decentralized finance (DeFi), non-fungible tokens (NFT), and the metaverse.
CRO price has dropped as investors worry about the safety of Crypto.com, one of the biggest spenders in the industry. Crypto has spent more than a billion dollars in the past few months to grow its market share. For example, it spends $700 million to acquire rights of Staples Center.
The company is also a major sponsor of major sports events like the recent World Cup, Formula 1, and UFC. It also spent millions of dollars in a Superbowl ad and additional funds in television advertising. As such, the concern is where the company got the funds since it is a mid-cap exchange.
CRO price has also dropped because of the challenges facing its ecosystem. Data shows that the total value locked (TVL) in its DeFi ecosystem plunged to $540 million. At its peak, the network had a TVL of over $4 billion.
Most networks in its ecosystem have seen significant outflows. For example, Tectonic’s TVL has dropped by more than 4% in the past 30 days to $282 million while VVS Finance has lost its TVL to over $178 million.
Will CRO price recover?
So, will Cronos price bounce back? For this to happen, the network needs to have more activity in its network. Also, the broad crypto industry needs to be supportive. Unfortunately, conditions are relatively difficult as interest rates surge.
Therefore, there is a likelihood that Cronos will continue falling in the coming months. A likely solution will be for Crypto.com to publish its full audited finances. If this happens, it will likely bring more confidence in the network.
As shown below, CRO price remains below all moving averages while the bearish momentum is continuing. Therefore, the next key support level to watch will be at $0.050.
Solana price joined in on the recent rally in the global cryptocurrency market, jumping nearly 17% in the past week. Solana has made substantial gains this year, climbing 102% in its year-to-date price. SOL ranks as the 11th largest cryptocurrency after Binance USD and ahead of Polkadot. Despite the altcoin’s recent rally, the total volume of the coin traded has continued to dwindle.
Fundamentals
Solana price was trading slightly higher on Friday as Bitcoin and other altcoins extended their rally despite the bank contagion fears weighing on the markets. Bitcoin and Ethereum have been leading the recent rally in the market, jumping more than 30% and 20% in the past week, respectively.
Investors have welcomed the resilient crypto prices amid the recent crisis in the banking sector this week. The week started with the collapse of Signature Bank and Silicon Valley Bank on Sunday until the focus shifted to Credit Suisse and First Republic Bank. Traders have been digesting the fate of Credit Suisse even after the bank said that it would borrow up to 50 billion Swiss Francs from the Swiss National Bank.
Several analysts have linked the recent rally in the crypto market to lingering bank worries. Even so, crypto prices are heavily influenced by inflation and the Federal Reserve interest rate hikes. According to analysts, the recent decline in banking stocks points to the vulnerability of traditional institutions, raising liquidity concerns…
Ethereum price staged a strong recovery over the weekend, wiping out its previous losses after jumping by more than 11%. ETH has moved past the crucial level of $1,500 and is currently trading at 1,588.98. The altcoin’s total market cap has jumped by more than 8% over the past 24 hours, while the total volume of the coin traded increased by nearly 37%.
Fundamentals
Ethereum price staged a strong comeback during the weekend, breaking its 5-day consecutive downtrend. Ethereum’s recovery is in line with the overall recovery in the crypto market. The global crypto market cap has jumped past the $1 trillion level and currently sits at $1.02 trillion. The total crypto market volume has increased by more than 31% over the last day.
Last week was a tough week for the crypto community. The Silvergate crisis, as well as fears about potential further interest rate hikes, had been weighing on the crypto market in the past week. Silvergate recently announced its plans to wind down its operations and liquidate its bank, staging the biggest hit on the crypto market after FTX’s collapse and Terra’s LUNA crash.
Notably, Fed chair Jerome Powell warned that the US central bank is likely to impose further interest rate hikes to higher levels than previously anticipated. The raising of interest rates over the past year has heavily weighed on risk assets such as cryptocurrencies and stocks.
Binance, the…
Cardano price has been under intense pressure for the past few days as Silvergate poses for a potential bankruptcy. ADA has slipped by more than 7% in the past week but remains 32% higher in the year to date. At the time of writing, ADA was 2.54% lower at $0.3221, while its total market cap inched nearly 1% lower. Cardano ranks as the 7th largest cryptocurrency by market cap after XRP and above Polygon.
Fundamental Analysis
Cardano price has recorded a sharp decline for the past few days as Silvergate’s crisis continues to weigh on cryptocurrencies. Silvergate Capital is a Californian bank that pioneered money transactions between cryptocurrencies and hard cash. The Silvergate crisis looks to be the next big failure after the collapse of FTX and Terra’s LUNA meltdown.
Data by Coinmarketcap show that the global crypto market cap has continued to move lower to $1.01 trillion, pointing to a bearish outlook in the crypto market. Bitcoin’s dominance has also inched lower as the digital asset remains at the $22,000 level.
Fears of higher interest rates by the US Federal Reserve have been gnawing at the markets, following Powell’s hawkish tone. Fed chair Jerome Powell announced on Tuesday that the Federal Reserve is prepared to return to bigger interest rate hikes in a bid to fight inflation.
The US central bank has been struggling to cool the economy despite a year-long campaign of…
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