Contents
- Cardano is hurting
- $25 billion wiped out
Crypto Market Review, October 13
Arman Shirinyan
Cardano’s market performance worsened even more despite not showing the best results in the past
As mentioned in a previous U.Today article, both crypto and stock markets are bracing for a volatility and outflow surge following a series of macroeconomic events this week that could cause serious problems if they turn negative.
Cardano is hurting
The increase in selling pressure and active hedging from investors did not go unnoticed by assets such as Cardano or even XRP, which have rallied in recent weeks.
Today, Cardano is one of the biggest losers in the top 10 assets sorted by market capitalization. The Ethereum competitor is losing almost 6% of its value in the last 24 hours, with a total drop of 13% in the last three days against BTC and a 15% drop against the USD.
Even without the plunge we see today, Cardano was in a tough spot in terms of market profitability. Less than 20% of ADA holders made a profit. After another price drop, the number will most likely move towards the value of 10%.
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Unfortunately, ADA is not the only asset that faced a large increase in selling pressure. XRP lost more than 6% of its value in the last 24 hours and fell below its 200-day moving average, which could be a sign of an upcoming downtrend return.
Continuation of the bear market for ADA will make it one of the least profitable assets in the market as the cryptocurrency has been moving downwards for the past 400 days.
$25 billion wiped out
According to the total market capitalization of the cryptocurrency market, more than $25 billion in assets have been wiped off the market in less than 24 hours. Total market capitalization fell to $900 billion from nearly $3 trillion in November.
Despite the massive selloff in May, investors have been actively moving their money away from the digital asset industry. Over the summer alone, the market has lost more than $300 billion in capitalization.
On the positive side of things, the rapid drop in the total capitalization of the market will most likely lead to a more volatile recovery as greater inflow of funds will lead to higher price movements.
Unfortunately, there are no signs of returning institutional or even private investors in the market, as the majority of market participants do not believe in a recovery in the foreseeable future. According to the latest CoinShares report, institutional investors provided about $10 million in inflows, which is a disastrously low number, especially if we consider the fact that the majority of these funds were sent to shorting ETFs.
