Cryptocurrency Market Sees $1 Billion USD of Real Capital Flowing Out of Altcoins
For most of the altcoins, the deep losses have already been reverted in this week of Pump-Dump-Pump.
XRP has taken the entire crypto market down with it.
The cryptocurrency carnage that occurred on late Wednesday night wiped out about $62 billion from the market.
XRP has lost 63.5% of its value since Monday when Ripple CEO Brad Garlinghouse tweeted that SEC is going to sue them for selling unregistered securities in 2013.
XRP/USD went as low as $0.212 before recovering to the $0.263 level.
Still, shorting XRP won’t be as fun here as “Funding rate is absolutely insane. Similar to the funding rate for BTC during the March capitulation. This can short squeeze so hard,” noted trader CryptoSqueeze.
While the world’s largest cryptocurrency, Bitcoin barely felt the effect, as it only dropped to $22,600 and is already back above $23,000, the second-largest cryptocurrency wasn’t this lucky.
ETH went down hard, losing nearly 12% of its value as it crashed to $550, currently working on getting back to the $600 level.
When it comes to the DeFi market, the total value locked (TVL) in the space hasn’t seen much change from last weekend’s ATH of $14 billion, currently standing at $13.3 billion.
As for tokens, SUSHI nuked only to get back to the previous level soon after. Much like SUSHI, several altcoins fell hard. LINK is another example of losing easily 30% of their value only to move back halfway up.
$SUSHI first alt to dalai lama the entire dump.
Let's fucking go. pic.twitter.com/JwRuO1M2aU
— Hsaka (@HsakaTrades) December 24, 2020
Over the past week, the notable losers include HAKKA (51%), SWRV (35%), CRV (31%), bzrx (28%), COVER (26%), COMP (25%), YFI (18%), AAVE (9%), and UNI (8.40%).
This week, SNX was the outlier as it diverged from the rest of the DeFi world. SNX surged more than 42% in the first three days of the week only to feel the pressure and losing 24% of its value since then.
This altcoin carnage resulted in their collective market capitalization down approximately $31 billion. This amounts to about “$1b USD of real capital flows out of alt-coins using FundStrat estimations of crypto cap change per dollar invested,” noted on-chain analyst Willy Woo.
Altcoins’ loss has been Bitcoin’s gain as its dominance surpassed 70%, to reach a one-year high.
Overall, markets remain in the red going into the weekend ahead of the Christmas celebration.