- Current crypto trends correlate with stocks and other off-chain investments.
- The global crypto market is at a trillion-dollar loss.
Bears continue to pull down and oppress the crypto market in the red zone. The Federal Reserves’ action of increasing the interest rates has led the on-chain and off-chain markets to steeply decline in sync. Crypto investors are more concerned about the trends of BTC and ETH correlating with the S&P 500, an off-chain asset.
The global crypto market exhibited severe drawdowns since early May. The market had lost nearly 500 billion in its market capitalization. According to CMC, it stood at a value of $1.8 trillion USD on May 5 and dropped to $1.24 trillion USD, at the time of writing. The trading volume of the market surged up 4% in the last 24 hours from $79.3 billion USD to $82.5 billion USD.
November 2021 has been the most remarkable period for the crypto market. It is when the value of the market rose up to nearly $3 trillion USD. On top of that, the largest cryptos reached their all-time highs. Bitcoin hit its ATH at $68,789 USD and its rival, Ethereum, hit $4,891 USD. Dropping down by 57%, at the time of writing, BTC trades at $29,113 USD and ETH trades at $1,949 USD.
Also DeFi declined 45%, nearly $90 billion USD, in its total-value-locked (TVL) from $198.6B USD to $108.39B USD.
Cryptos on Continual Losing Streak
The prices of major altcoins plummeted with “double-digit losses” during the dips. Terra (LUNA) and algo-stablecoin TerraUSD (UST) had the worst downfall in the market.
As per CMC data from May 5 to May 19, Binance (BNB) declined 20% and trades at $294.95 USD, and Solana (SOL) declined 84.6% and trades at $50.67 USD.
The popular memecoin, Dogecoin (DOGE), dropped by 34% from $0.1284USD to $ 0.0844USD. Whilst the dogekiller, Shiba Inu (SHIB), plunged by 43% from $0.00002029 USD to $0.00001152 USD. Stablecoins like Tether (USDT), Binance USD (BUSD), and DAI didn’t exhibit significant declines. But TerraUSD (UST) lost 91% of its peg and trades at $0.08944 USD.
Investors anticipate the crypto market trends to become uncorrelated from the traditional market.