While investors are supposed to react positively to the news in the crypto space, the opposite is exactly what is being recorded.
There is a sweeping decline in the prices of most digital currencies today as market bears shun the fundamentals and went on a broad-based selloff. At the time of writing, the combined crypto market cap is down by 6.35% to $1.05 trillion, the lowest it has gotten to in weeks.
Crypto Market Slumps in an Encompassing Way
Bitcoin (BTC) is yet again leading the broader market decline after falling 6.78% to $21,841.95, a price that is very close to its monthly low of $20,776.82. Ethereum (ETH) also recorded a steep decline of 5.97% to change hands at $1,736.18.
The majority of altcoins were trading at a loss on Friday with Binance Coin (BNB) dropping 8.16% to $283.01, Cardano (ADA) slipped 12.32% to $0.473, Solana (SOL) down by 11.09% to $36.37 and XRP is currently changing hands at $0.3435 after it slumped by 8.31% in the past 24 hours.
The digital currency ecosystem is a very volatile one, and cryptocurrencies could respond to any news in a negative way. While the source of the current market onslaught is yet unclear, there are digital currencies with defined bullish fundamentals that are still riding the general bearish train.
XRP for instance has been in the spotlight for close to two years now as it is embroiled in the legal battle between the United States Securities and Exchange Commission (SEC) and blockchain payments firm, Ripple Labs Inc. While the outlook is generally gloomy, Ripple is making up for this with functional business partnerships that will help proper utilization of the XRP coin.
Ripple recently partnered with Travelex Bank to launch a crypto-backed payments gateway in Brazil. This payment enterprise is billed to feature among many things, the XRP coin.
“Brazil is a key market for Ripple given its importance as an anchor to business in Latin America, its openness to crypto, and country-wide initiatives that promote fintech innovation. As a result, the market is experiencing an explosion of activity as institutions look to adopt crypto and blockchain technology to solve customer pain points,” said Brad Garlinghouse, CEO of Ripple.
The Ethereum Misconceptions
While investors are supposed to react positively to this news, the opposite is exactly what is being recorded.
One major explanation that could be given for the downtrend might be connected to Ethereum. With the much anticipated Ethereum 2.0’s The Merge event, the clarification of key misconceptions about the protocol’s Proof-of-Stake (PoS) as published earlier this week by the Ethereum Foundation might have left many supporters disappointed.
The Ethereum developers noted that the revamped protocol will not necessarily lead to cheaper gas fees. Additionally, it was pointed out that the transaction speed may also not be significantly changed from what it used to be. These reality checks might not be sitting well with the public, and many were hoping the new Ethereum can wage a more formidable competitor against the crop of the so-called Ethereum-killers in operation today.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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