The last seven days were shocking for almost all financial markets, the crypto market was no exception. Experts blamed it on one of China’s largest construction companies, or rather its possible default on its debt obligations.
China Evergrande Group has accumulated a debt of $309 billion. On September 20, the construction giant announced about a possible restructuring of payments, according to the law the company has 30 days to negotiate with investors. Rating agency S & P said that the Chinese government does not intend to rescue Evergrande if the situation worsens. These statements caused chaos on the financial markets. And this reaction is quite natural. These are phantom pains from the crisis of 2008: investors fear that the problems of the giant developer will affect the real estate market, so they “blow on milk” and go out of the open positions.
Experts of analytical agency Glassnode analyzed the cryptocurrency market and said that even some hardened long-term holders started selling bitcoin. However, the analysts noted that the price reaction and data on the movement of funds in the blockchain indicate, in general, a steady reaction. Anthony Scaramucci, head of SkyBridge Capital, agrees with that conclusion. He believes bitcoin is destined to become a global reserve currency. The financier urges all opponents of cryptocurrencies to take a closer look at the technology on which they are based in order to better determine for themselves why they do not want to own digital assets. “Yes, bitcoin is volatile, but that’s only because it’s at a very early stage of adoption. Amazon stock had the same volatile curve 24 years ago. But if you invested $10,000 in Amazon stock in an IPO, you’d get $21 million today,” Anthony Scaramucci said. By the way, El Salvador’s first steps as an official reserve currency will soon be visible. The president of that country reported that the government had bought 150 more BTC coins amid the collapse of the market.
At the end of the reporting seven-day period, the total capitalization of the cryptocurrency market showed a significant drawdown. On Wednesday evening, September 22, 2021, it was considerably lower than $2 trillion, equaling $1.82 trillion, which is 13.7% less than the end of the previous week.
1. Bitcoin (BTC).
The value of the “first cryptocurrency” fell to $41994 as of Wednesday evening, September 22, 2021. Following the results of the previous seven-day period, the market capitalization of the “digital gold” plummeted $107 billion, making $789 billion. The share of the “first cryptocurrency” in the total market capitalization grew by 0.8 percentage points and at the end of the previous reporting period was 42.5%.
2. Ethereum (ETH).
“Ethereum is overvalued. This is the opinion of the analytical department of JPMorgan. According to expert Nicholas Panagirtzoglu, the fair price of Ethereum, calculated on the basis of network activity, is no more than $1500. Experts believe that the price of the second most capitalized cryptocurrency is much less attractive than is assumed when considering the market value of ETH. Experts also note that the growing competition from projects such as Solana and Cordano is not reflected in the formation of Ethereum’s value. “We see the hash rate and the number of unique addresses on the blockchain network and try to estimate the value of Ethereum. We’re struggling to get the estimated value of the asset above $1500,” the JPMorgan strategist added
As of Wednesday evening, September 22, 2021, the value of Digital Oil was $2901. At the end of the past seven days, the value of the asset has fallen 15.72%. The share of Ethereum (ETH) in the total capitalization of the cryptocurrency market during this time decreased by 0.33 percentage points and made 18.37%.
3. Cordano (ADA).
As of Wednesday evening, September 22, 2021, Cordano (ADA) was worth $2.1. The value of this digital asset for the last seven days has lost 14.63%, while its share in the total capitalization of the cryptocurrency market was 3.59%.
4. Binance Coin (BNB).
As of Wednesday evening, September 22, 2021, BNB was worth $357.7. Following the results of the previous seven-day period the value of this cryptocurrency has lost 16.79%. The share of Binance Coin (BNB) in the total capitalization of the cryptocurrency market has increased, amounting to 3.25%.
5. Ripple (XRP).
Fox reporters reported that they had discovered the reason why the SEC was focusing so much attention on XRP rather than, for example, Ethereum. Charles Gaspiano, the network’s correspondent, said that the SEC had rejected the idea of seeking recognition of Ether as a security because of its fully built blockchain infrastructure. This was the deciding factor in classifying ETH as a commodity, unlike XRP, whose nature is seen by the SEC as an unregistered security. In addition, the SEC has emphasized that the XRP token is used in its entirety to fund the operations of fintech company Ripple. Peter Brandt, a respected tech analyst and Factor LLC executive, shared that he fully agrees with the SEC and considers XRP a security. “Personally, I consider XRP a security, however that in no way prevents me from owning it under favorable circumstances,” he wrote.
As of Wednesday evening, September 22, 2021, Ripple (XRP) was worth $0.92. Ripple (XRP) was down 16.36% on the week. Ripple (XRP) share in the total cryptocurrency market capitalization at the same time decreased by 0.27 percentage points to 2.35%.
6. Solana (SOL).
The failure in Solana’s test blockchain, which led to a sharp drop in the value of the digital asset a week ago, was comprehensively investigated by the project’s developers. On September 21, a preliminary version of the report was published. Experts reported that the reason that almost paralyzed the work of the test network was a targeted DoS attack. Network loading with incessant chaotic transactions led to its overflow and it is banal to hang many validators. The developers have promised to publish a full report with suggestions to prevent similar situations from happening again in October.
As of Wednesday evening, September 22, 2021, the SOL was $128.59. At the end of the past seven-day period, the value of this cryptocurrency collapsed by an impressive 17.57%. At the same time, Solana’s (SOL) share in the total cryptocurrency market capitalization was 2.09%.
7. Polkadot (DOT).
As of Wednesday evening, September 22, 2021, the cryptocurrency Polkadot, which managed to push back Dogecoin in the capitalization ranking, was worth $28.16. At the end of the past seven-day period, the value of this cryptocurrency fell by 28.16%. The share of Polkadot (DOT) in the total capitalization of the cryptocurrency market was 1.5%. Translated with www.DeepL.com/Translator (free version)