Ahead of the proposed interest rate hike by the US Federal Reserve, major cryptocurrencies took a sharp U-turn, amid heavy trading volume. The global crypto market cap crashed by 6.94 per cent to $2.07 trillion, while its trading volume is up by 12.57 per cent at a massive $116.64 billion which might indicate a panic selling event, showed Coinmarketcap data as of 8.14 am.
As per various media sources, the hash rate of Bitcoin (BTC) has reached an all-time high of 207 E/hs. Crypto hash rate refers to the amount of computer processing power needed for mining a new coin and verification of any transaction originating on the said blockchain network. This higher hash rate means that any hacker who wishes to gain 51 per cent control of the Bitcoin blockchain’s network by executing an attack needs to have a much higher computational processing power. Hence Bitcoin’s overall network integrity now stands stronger than before.
But investors failed to notice this big security improvement in the world’s oldest blockchain network and thus they continued to sell Bitcoin at every rise. At 8.14 am, BTC was down 6.39 per cent at $43,390.98. Read more about the history of Bitcoin here.
“Bitcoin has retraced about 6 per cent in the last 24 hours and is expected to stabilise between the $40,000 and $50,000 mark. Levels of volatility have declined in terms of Bitcoin and Ether. This compression of volatility may be a recurring theme for this year,” says Gaurav Dahake, CEO, Bitbns.
Rival Ethereum (ETH), which is almost close to the deadline for its proposed change in consensus mechanism from proof-of-work to proof-of-stake, crashed by 7.70 per cent at $3,513.56. Its volume to market cap ratio stands at 0.04652. The proof-of-stake mechanism consumes less energy but is less safe from the proof-of-work mechanism.
Cardano (ADA), which was recently chosen by Samsung for its environmental sustainability initiative of planting 2 million mangrove trees by Q1 2022 in Madagascar, crashed by 7.41 per cent to $1.23. Algorand (ALGO), which is known as the Ethereum killer, also crashed by 11.55 per cent at $1.53; its market cap now stands at $9,904,016,699.
Among other major coins, Binance Coin (BNB) was down by 8.99 per cent at $468.67, while Solana (SOL) was down by 9.96 per cent at $152.22.
Today’s top gainer was NinjaFloki (NJF), which was up by 1227.28 per cent at $0.00004377. The top loser was Beyond Protocol (BP), which fell by 84.88 per cent to $1.
Meme Coins And DeFi
Dogecoin (DOGE) was trading with a loss of 7.78 per cent at $0.1572. Its volume to market cap ratio stands at 0.0507. Rival Shiba Inu was down by 8.53 per cent at $0.00002982. ELON is trading with a loss of 10.36 per cent at $0.000001353, Floki Inu crashed by 15.13 per cent at $0.00008713, while Samoyed Coin (SAMO) is trading with a loss of 6.45 per cent at $0.03564.
In the DeFi segment, YFI (yearn.finance) was trading with a loss of 13.88 per cent at $32,010.99, Terra (LUNA) was down by 10.31 per cent at $76.43, Avalanche (AVAX) is down by 10.53 per cent at $94.49, Uniswap (UNI) is currently down by 9.72 per cent at $16.81. Meanwhile, Aave (AAVE) recently launched its DeFi lending platform Aave Arc for use by financial institutions that want to participate while complying with regulations in this segment (DeFi), reported theblockcrypto.com; it is currently trading with a loss of 11.78 per cent at $224.92.
Jeremy Siegel, a finance professor of Wharton School of the University of Pennsylvania, where Tesla CEO Elon Musk also studied, warned the world about growing inflation and how millennials are using Bitcoin instead of gold as a hedge against it. He was quoted as saying, “Let’s face the fact, I think Bitcoin as an inflation hedge in the minds of many of the younger investors has replaced gold… Digital coins are the new gold for the millennials,” reported news.bitcoin.com.