The world of cryptocurrencies has been experiencing turbulent waters in recent weeks, culminating in the prolonged outflow of money for the sixth consecutive week – an unprecedented period of equity liquidation in the volatile market. However, despite the general drop in assets held in blockchain wallets, there are two select winners in the market Volatility: XRP and SOL have gained investors’ confidence and seen greater inflow of funds to their respective wallets. In this article, we explore the reasons why these two coins are bucking the trend.
1. Crypto Losses Continue for Sixth Week Running
Cryptocurrency traders have seen yet another tumultuous week of losses on the global crypto market. Prominent coins like Bitcoin, Ethereum, XRP, and Litecoin all ended the week on the slide.
- Bitcoin — down 6.1%
- Ethereum — down 11.9%
- XRP — down 5.6%
- Litecoin — down 12.7%
The steady descent of global crypto prices has seen many speculators exit their positions in fear of losing more of their holdings, as continued negative commentary from large financial institutions weighs on traders’ minds. With little to induce buying sentiment in the markets, losses have continued for the sixth week running.
2. XRP Investors Remain Optimistic
The majority of XRP investors remain very optimistic about the outlook of cryptocurrency’s development. Recent research estimates that as much as 80 percent of professional XRP investors expect the currency to rise in value in upcoming months. And it’s understandable – behind the scenes, the future of XRP looks very bright.
For one thing, there have recently been major advancements in technology which make it possible to process payments faster and in greater volume. This means XRP can accommodate larger trading deals and speed up the time taken to complete them. Furthermore, the recent developments in blockchain tech have enabled better decentralization, and with wider adoption of XRP, its future is looking rosier than ever.
- Recent tech advancements can make it possible to process payments faster and more efficiently
- Wider adoption of XRP will mean decentralization can be improved
3. SOL Crypto on the Rise as Investors Brave Market Downturn
The past few weeks have been a tumultuous time for the world of crypto, but it looks like SOL Crypto is weathering the storm as it continues its rise, even through a bear market. SOL has demonstrated remarkable correlation to the market and is beginning to draw the attention of crypto investors looking for a safe-haven asset in these insecure times.
The most significant shift in the rise of the second-tier cryptocurrency has been its immense liquidity and innovative support system. Trading platforms and exchanges have started offering SOL as both a spot trading and margin trading instrument, providing investors with a wide array of options when entering the market. To help minimize volatility, the SOL protocol has implemented a novel support system of algorithmic staking and dynamic overprints, creating a clear trend amidst the chaotic environment of volatile markets.
- SOL has demonstrated remarkable correlation to the market
- Trading platforms and exchanges have started offering SOL as both a spot trading and margin trading instrument
- The SOL protocol has implemented a novel support system of algorithmic staking and dynamic overprints
4. Latest Figures Confirm Crypto Losing Precious Ground
The latest figures prove that cryptocurrencies are losing their foothold within the financial industry. The heretofore explosive growth seen in the crypto space has been drastically reduced.
- Market capitalization has been reduced by 60%, standing now at a mere $90 billion
- Daily trading volume has declined by over 70%, hovering at $10 billion
- The number of users has gone down from an all time high of 20 million to 15 million
The news of Bitcoin’s remarkable rise and fall in 2017 has surely been a major factor in the waning popularity of cryptocurrency. As the leading digital currency, it’s fortunes are inextricably linked to those of other, less established digital currencies, and its sharp descent in value has created a ripple effect throughout the industry.
5. Analyzing What’s Next for Crypto After a Long Week of Losses
The crypto markets have had a long week of losses, with many coins taking a significant hit. But, that doesn’t mean the end of the road for cryptocurrencies. Analyzing the trends and identifying potential next steps can help investors make sound decisions moving forward. Here are a few things crypto investors should consider:
- Examining the Causes: Understanding why the crypto markets dropped in the first place is key to making informed decisions when investing. Research the fundamentals behind the losses, such as changes to certain cryptocurrencies, poor press, or macro-economic factors.
- Taking it Slow: With the market in a volatile state, taking a step back is the best approach. Don’t make any rash decisions, and allow the hype to settle before making any decisions on significant investments.
- Exploring Alternatives: Now may be the perfect time to explore alternative coins or types of decentralized technology. Keep up to date on new developments and consider how they could shape the crypto space in the long-term.
It’s worth noting that the crypto markets may stay volatile for some time. Keeping up to date with news and developments while making informed decisions based on market trends is the best way to navigate these choppy waters.
The cryptocurrency market squeezed out a bit of a surprise as XRP and SOL investors found a moment of solace amidst the tumultuous market conditions. The broader market continues to show signs of outflows, however, and it will be up to the major players in the sector to shift the tides if the crypto market is to again hit a confident stride.