Rise of Solana and fall of Bitcoin

By Sony T
3 Min Read
Rise of Solana and fall of Bitcoin 1

This year has been quite a disappointing year for crypto investors as the market value of the universe has been sinking by over $1 trillion in the last half-year till June 30. There are multiple factors that affect the value of the ongoing dampened sentiment. The extreme increase in the interest rates by the US Federal Reserve is proven to be a recession indicator that led to the massive decrease in the crypto market. On the other hand, the cumulative impact of the slowdown across markets is giving an invitation to the cascading effect on the crypto market.


In addition to this, the Celsius Network freezing users’ withdrawals and transfers also had a huge impact on the market. These factors have immensely affected the crypto industry over the globe, including in India as well. In real-time, India is the largest hub of crypto investors. The crisis over Terra Luna’s liquidity further affected the wealth situation of the investors.

One of the most famous cryptocurrencies- Bitcoin, has tumbled nearly 60 % since the beginning of the year. The jump is analyzed as follows- Solana 80%, Ethereum 70%, Cardano 65%, Ripple 60 %, and BNB 58%. The overall market capitalization of crypto is recorded as $0.90 trillion in the month of June 2022 from $2.18 trillion in the month of January 2022.

Smit Khakhkhar, tech diligence at Delta Blockchain Fund, wrote his words on the ongoing wealth erosion, “Not only cryptocurrencies but all asset categories are facing the crunches in their values since the beginning of the year, though cryptocurrencies have been more bearish than stocks, etc., multiple factors contributed to the same. On the topmost point, the collapse of Terra-UST Stablecoin is visualized; it wiped off around $ 20 billion of investor value within three days. This wipe-off lead to cascading effect on other crypto projects and insolvency of crypto companies having direct exposure in it.”

Should you invest in the falling crypto?

Khaleelulla Baig, co-founder, and CEO of Koinbasket has mentioned, “Though there is no way to crypto, the second half of the year will be more about consolidation around the current market cap levels. There are very few crypto projects that are building around leverage which are facing strict regulations, which is not suitable for the short term, but for the long-term crypto markets, it will be a great option to choose.” The investors should keep their eye on the long-term advantages. The downfall in cryptocurrencies seems to be a great opportunity for long-term investors.

Gaurav Dahake, co-founder and CEO of Bitbns, added that on the usual basis, crypto is expected to increase in the future. However, it is totally dependent upon the global policies toward crypto. That will figure out the image.

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By Sony T
Sony is a passionate bloggers writes on Futuristic technologies ...
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