Crypto giants fall this week, Meme coins remain relatively Stable

Over the last week, the global crypto market has steadily dropped as market capitalization fell by about 13%. Bitcoin experienced a 14% dip on a seven-day scale, starting the week at ~$56,000 and dropping to about $42,000. As the crypto giant saw drops the market was faced with over $2.5 billion in liquidated positions. The second-largest coin, ETH, also saw hardships as it was down by 10%. Large coins such as Solana, Cardano, and Polkadot faced heavy losses, all incurring a 24%-25% drop in value over the past seven days.

According to CoinDesk, Solana’s valuation was mainly attributed to congestion problems on its networks last Thursday, causing transactions to slow down. CMO at SOL-based lending platform Blockasset, Phil Gunwhy, reports that “SOL/USD is heading toward the $145 daily support level. There is not much substantial support along the way until that mark, only the $155.5 daily level which does not look overly convincing in terms of its potential motive force.”

Interestingly enough, ‘meme coins’ such as Dogecoin and Shiba coin saw smaller declines in the recent crash at 3.7% and 4%, respectively.

One of the possible reasons for the crash is the downgrading of Chinese real estate conglomerate, Evergrande, by rating agency Fitch. Evergrande was downgraded as it holds an estimated $300 billion in obligations and the rating agency has reported that it would likely not repay investors. The possible defaults sparked fears of an imminent sell-off, causing several markets to act irregularly.

Source: Cryptopotato