By Alicia Maher
Early Friday, the losers were layer one native tokens of Polkadot, Solana, and Terra. This was a result of the 3% dip in the cryptocurrency market. From all indications, metrics show that DOT traded at $27 in the early hours of Asian trading time. This was about a 7% decrease from $30.16, the token recorded on Thursday. Solana (SOL) took a 6.6% dip and is now traded at $178, while LUNA took an 8% dip from Thursday’s trading high of $76.72.
The great dip in Solana token resulted from fundamental issues such as the poor-performing blockchain numbers as the U.S. hours were rounding up. On average, the network processes 2000 transactions per second. However, its performance was pitiful, resulting in 500 transactions per second.
It is believed that Solana will continue to take a consistent dip until the price action rests on a solid support level. Presently, SOL/USD trading pair is going hard at the $145 support level. And sadly, no real support along that path is in sight. Perhaps the $155.5 level could bring the needed reprieve, but that is still a joke.
Terra And Polkadot Locking Their Price Positions Despite Cap Losses
Their fundamentals seem to be packing heat for other cryptocurrencies such as terra and Polkadot. With the launch of the anticipated “para chain” framework from DOT, there is a potential that a strong motive backs its price action.
Besides, the chain feature provides an opportunity to secure DOT tokens for auction accessible by other blockchains. This is a great way the native community and several investors can profit from the blockchains created on the Polkadot blockchain. By locking up their DOT tokens, the para chain rewards them with tokens from the secondary blockchain.
This principle of locking up assets was initially spearheaded by Defi apps that provide trading and lending services on the blockchain. These Decentralized Finance startups put $13 billion of LUNA and UST aside. They also incentivized their framework by burning their tokens, especially for LUNA.
Bad Day For Memecoins
Shiba Inu and new “memecoins” suffered minor declines, a range of 3.7% and 4.0%. While Shiba Inu recorded a $0.000032 high just yesterday, other meme coins added $0.18 to their value. Other tokens that took a fall were Algorand and Cardano. By noon, Avalanche also suffered a 3.4% dip in value.
Uniswap And Axie Infinity Were Indirect Casualties Of The Downtrend
However, layer one blockchains were not the only casualties. The decentralized exchange called Uniswap (UNI) and Axie Infinity (AXS), the metaverse game, collectively took a plunge of about 9% during the Asian 24H trading period. As noted, the vast dips were caused by technology. Then, market capitalization due to Bitcoin taking a huge blow, driving down its value from $50,910 to $47,440.
Bitcoin, which is used as a risk asset globally, nosedived in value because of a rating agency, Fitch. The comment was directed to a significant Chinese player, criticizing it for defaulting on its obligations. This resulted in panic, then sell-off, that spiraled into other crypto markets.
Inflation whispers and pessimism also contributed to the downtrend in the crypto market, including the spread of Omicron, a new strain of the coronavirus.