Lately, the market has seemed to run out of steam and we have seen the crypto fall of many projects that had nevertheless performed well during the year 2021. According to many experts, the cycle still seems to be bullish, but the market seems have trouble choosing a clear direction.
A market still too correlated to Bitcoin
The cryptocurrency market is constantly expanding, its total capitalization recently exceeded 3 trillion dollars. It also tripled between the start and end of 2021 .
However, this market remains strongly driven by the leader and pioneer Bitcoin. The latter represents 42% of the total capitalization , which is still gigantic. Also, when Bitcoin coughs, the crypto drop spreads throughout the market.
An uncertain international context
Crypto-assets are inherently risky and volatile . Falling crypto is usual in the market and nothing goes up in a straight line. If we add to this a rather unfavorable international context, we can better understand the current situation.
Inflation is currently experiencing a significant increase globally. The geopolitical situation is more than tense with the war in Ukraine. This context of uncertainty is not beneficial for the world of cryptocurrencies.
Star projects of 2021 in decline
Among the projects most impacted by the crypto fall, there are several projects that outperformed the market in 2021. We can notably cite Fantom, which is having a complicated start to the year. After trading for nearly $3.33 in January, the token has experienced a very significant decline to be around $1.30 today. This project also suffered the departure of its founder André Cronje from the blockchain ecosystem, which led to this fall.
One of the historic projects, Chainlink , the number 1 blockchain oracle, has also had a complicated last few months. After trading for over $50 in May 2021, it is now stagnating around $15.
Faced with this crypto fall and this gloomy market, some cryptos manage to hold their own. We are thinking especially of Luna , Avalanche or even Ethereum which are holding up at interesting levels. The future will tell us if this crypto fall is only temporary or if it settles over time.
One thing is certain, reliable platforms such as Crypto.com allow you to invest in cryptocurrencies. The market thus seems conducive to investment.