$3 Billion Removed From Crypto Market As Major Digital Assets Drop
Last week, the crypto market experienced a decline of $3 billion from $212 billion to $209 billion, leading cryptocurrencies such as Stellar (XLM) and Cardano (ADA) have dropped by 3 to 6 percent.
Oddly, Stellar and Cardano is part of the three cryptocurrencies together with Zcash that are expected to be added into Coinbase, the world’s fourth-largest fiat-to-crypto exchange after Bitfinex, Bithumb and Upbit.
Before their listing, Basic Attention Token (BAT) and 0x (ZRX) recorded profits in the range of 100 to 120 percent, rose by at least two-fold.
After their listing, both BAT and ZRX recorded large declines. BAT, in particular, experienced a decline of over 36 percent from $0.36 to 0.24. While Coinbase listing offers a confirmation that a token is not regarded a security under existing regulations, in relation to short-term price trend, it seems to have a negative effect.
Stellar, Cardano and Zcash already saw major recoveries after the Coinbase listing interest release in May, and investors possibly experience a drop in value to come shortly, particularly if Coinbase follows its plans to list the three assets.
“Since November 2, the day BAT was officially integrated into Coinbase Pro and Coinbase.com, XLM, the native cryptocurrency of the Stellar blockchain network, has increased from $0.22 to $0.28, by more than 27 percent.”
But, since then, the price of Stellar has declined by almost 10 percent from $0.28 to $0.253597, and it continues to decline due to the lack of momentum of Bitcoin.
According to The Crypto Dog, a technical analyst, and cryptocurrency trader, different technical indicators show a lack of momentum for both Bitcoin and the rest of the cryptocurrency market.
As a result of the stability of Bitcoin over the past three months, it can be said that the bottom is in, however, the volatility of the cryptocurrency exchange market can drive the market to a decline movement.
“Not trying to FUD or terrify anybody, but in general the charts don’t look great for crypto right now. Hopefully, we’re A-Okay and the bottom is in, but if you’re a holder make sure you are comfortable holding through the further drawdown and a much longer bear market (years),” the analyst said, adding, “there is no volume or price action to support a bottom being established on BTC. It could be the bottom, it could be over, but to declare it with certainty is foolish.”