Top 4 Cryptos Experiencing Price Decreases
Top 4 Cryptos Experiencing Price Decreases
2022.08.28 18:15
Top 4 Cryptos Experiencing Price Decreases
Budrigannews.com – Some people are seeking refuge in other cryptos. This article will discuss the top 4 cryptocurrencies currently experiencing price declines, including TerraUSD, Tether, Litecoin, and Luna. These are all great choices to invest in during this time of trouble. But before you invest in these new coins, it’s important to understand what they’re all about. Read on to find out more.
TerraUSD
As cryptocurrency prices continue to plummet, investors are looking for safe havens in the form of stablecoins such as TerraUSD. This coin is being used to store assets outside of the US, where it was used as a stablecoin. Most people outside of the US first learned about crypto from YouTube and trusted the currency because it was traded on popular exchanges. This is no longer the case. As prices of crypto continue to tumble, more people are finding refuge in TerraUSD.
The currency’s value has plummeted over the last several days, and its creator has been forced to defend the currency in a lawsuit. Although Terra is a new coin, the price of it has dropped more than ten percent against the dollar, investors are finding refuge in TerraUSD. However, the cryptocurrency has faced regulatory scrutiny. The Securities and Exchange Commission has opened a case for potential violation of federal investor protection rules in the Terra ecosystem, while South Korean regulators have launched a sweeping probe into the company. Last week, a class-action lawsuit was filed against Terraform Labs, the creator of Terra. The lawsuit comes shortly after Terra community approved its new project – the creation of a new LUNA token. However, as the price of bitcoin continues to plummet, investors are seeking refuge in TerraUSD.
The current situation of the crypto markets is particularly difficult for investors. While they may be a safe haven, they have little value in a volatile market like the one in which the market is crashing. Traders may want to avoid these stablecoins to preserve their gains. The current situation may change, but investors will remain cautious. This will be the reason why investors are looking for safe havens in the form of TerraUSD.
Luna
As the price of cryptocurrency continues to fall, investors are seeking refuge in another digital currency: Luna. The digital currency recently plummeted from a high of $99 to just under $50 per coin. This collapse highlights the role of stablecoins. The currency is backed by the US dollar, and its price has been influenced by the falling price of Bitcoin. But it is still worth a lot less than the dollar.
The price of Luna debuted over $15 but has since corrected and is now trading at $5. Last weekend, Binance completed a massive airdrop of Terra Luna to investors. But critics said the price would drop to $1 and investors quickly sold off in order to make a meager profit. But today, the price of Terra Luna is up 5%. Despite the steep price drop, investors should stay focused on the cryptocurrency’s price predictions.
The LUNA network’s founder, Do Kwon, has decided to make changes to its blockchain platform. But it hasn’t yet released the details of its on-chain analytics. Investors are still wary as the price of bitcoin continues to fall. Luna, on the other hand, is a stablecoin backed by the US dollar. Although investors are wary of the volatility of cryptocurrency, it is a great alternative to Bitcoin.
As cryptocurrency prices spiral down, investors are seeking refuge in Luna. The sister token of TerraUSD, Luna has fallen to $0 compared to its initial price of $100. TerraUSD was supposed to be pegged to the dollar, but it lost its peg and was trading for just 12 cents on Friday. With a market cap of $4.2 billion, TerraUSD is a safe bet for investors.
Tether
As the price of Bitcoin continues to fall, some investors are finding shelter in Tether. Tether is a stablecoin that is not backed by the U.S. dollar 1:1. The stablecoin has been criticized for its lack of transparency, which has caused it to lose some of its value. The company has made a few public statements describing the nature of its reserves, but this is not enough to alleviate investor concerns.
Tether’s reserves aren’t invested in short-term liquid securities, and the company’s balance sheet is made up of credit assets with an unknown quality. Tether’s liquidity is such that it has the potential to bring down other cryptocurrencies and tokens during a credit market correction. This makes Tether a sort of de facto credit hedge fund. As a result, cryptocurrency and bitcoin prices will likely exhibit a strong correlation with the credit markets.
In May, a crypto bank named Celsius Network shut down withdrawals. The crypto bank was unable to meet its obligations under the agreement, which included paying a $1 deposit to investors. Consequently, the price of tether fell by over $42 billion. The crypto lender Celsius has stopped customer withdrawals due to the liquidity crisis, while the crypto hedge fund Three Arrows Capital is suffering from a large loss. This is a perfect storm for the crypto market, and as investors try to make the best of the situation, Tether has become the go-to option.
The Tether coin is a comparatively safe haven for investors. Unlike the volatile prices of other cryptocurrencies, the Tether price can’t fall below $1. As a result, it could cause a chain reaction, forcing investors to sell their other crypto assets and take out loans from other companies in the sector. This is a potentially disastrous situation, and the collapse of terra would lead to the collapse of the entire industry.
Litecoin
As the price of Bitcoin, Ethereum, and other cryptocurrencies plunge, Litecoin is proving to be a good alternative. It has a much lower price than the other cryptos, and has maintained its stability through the bear market. While the cryptocurrency has suffered a 54% year-to-date loss, it has held up better than its alt-coin counterparts. As of 26 May, over eighty percent of the total Litecoin addresses held up to a loss. The active address ratio was only 1.54%, which is considerably lower than the average ratio for Bitcoin.
Litecoin’s privacy feature could also hinder the cryptocurrency’s future growth. South Korean governments see private cryptocurrencies as money laundering and terrorist financing tools. As a result, South Korean top crypto exchanges have signaled the delisting of Litecoin. Litecoin is not yet available on major exchanges, however, but is available on popular websites like Shopify and WooCommerce.
This drop has occurred in parallel with the stock market’s recent slump. Bitcoin, Ethereum, and other cryptocurrencies plunged along with stock prices this week. Bitcoin dropped thirteen percent and Ethereum’s coin briefly fell fifteen percent, pulling down other digital assets. The reasons for these plunges are similar to those that impact stock markets, including rising interest rates, geopolitical tensions, and concerns over tightening monetary policy.
Bitcoin
With the market experiencing extreme volatility, Bitcoin was a popular choice for many investors as it offered some protection from the ebb and flow of markets. During its rise to US$68000 in November 2021, Bitcoin’s price dropped by over 80%. While the Bitcoin price fluctuates wildly, it is tied to only supply and demand. This makes it difficult to determine its fundamental value.
Many investors believe that bitcoin represents a safe haven from rising interest rates and inflation. While many investors believe that this will protect their money from rising interest rates, many have doubts about the safety of the crypto market. This is especially true after the recent shutdown of internet services in Kazakhstan, which makes up 18% of the entire bitcoin network. Many investors are concerned that the crash of Bitcoin prices will cause a global panic and a 40% fall in other assets would have led to a global meltdown.
Investors are avoiding risky assets in general as major central banks are raising interest rates to curb inflation. The Fed is also raising rates, making future earnings less attractive. A sustained downturn has sent prices of cryptocurrencies to all-time lows, leaving some investors seeking refuge in Bitcoin. However, these investors should be aware of the risks that accompany crypto investments. As Bitcoin continues to tumble, investors should consider other options, like IRA accounts and stocks.
In the midst of this turmoil, investors should keep in mind the risks associated with the cryptocurrency market. Inflation has reached multi-decade highs and monetary policy has become tighter. This could lead to a recession and cause investors to sell their crypto assets. While Bitcoin has historically been a highly lucrative speculative investment, a prolonged period of poor returns will dampen investor enthusiasm.
