The upswing that the crypto industry has experienced in recent days has subsided again. After Bitcoin briefly made it above $ 50,000, the price can now be found again significantly below and is trending towards $ 48,000. The small slump runs through the entire market. High-flyers such as Cardano (ADA), Solana (SOL) and Terra (LUNA) have also turned into the red – even if they were temporarily in the plus against the market trend.
Overall, the new bear market means a total of around 100 billion dollars (approx. 85 billion euros) in loss for crypto investors. Even so, the crypto market remains high and has not yet fallen below the $ 2 trillion mark. Now it is questionable whether it can go up again soon. Some altcoins had a strong upward trend in the past few days, but this momentum seems to be over.
Above all, Cardano, still the new number 3 behind Bitcoin and Ethereum in terms of market capitalization, has marched to new heights. The reason for this is the long-awaited Alonzo upgrade, which will finally introduce smart contracts on the Cardano blockchain. This, in turn, should inspire the ecosystem around the Ethereum alternative, and ADA investors therefore expect price increases for the chain’s native token. But for many, Cardano has little substance, and there are doubts that mastermind Charles Hoskinson will manage to build an ecosystem comparable to that of Ethereum (more on this here).
Rise of the ADA token: “Now is the decisive phase for Cardano”
Industry continues on the upswing
While altcoins have, as is so often the case, stronger fluctuations up and down, the pendulum movements have become weaker with Bitcoin – at least in the last few weeks. In the industry, the Lightning Network is currently gaining momentum as a Layer 2 application. More and more use cases (most recently with the Substack newsletter service) are coming onto the market that try to make Bitcoin a faster and cheaper means of payment via the Lightning Network.
Even if there are the usual ups and downs in the crypto market, investors will not be deterred. Every week they invest hundreds of millions of dollars in companies that have held central positions in the crypto industry in recent years – including Bitpanda, Blockstream, Ledger, BlockFi and Fireblocks. In the investment rounds of more than $ 100 million alone, there are now more than $ 6 billion invested in blockchain companies in 2021 – and that doesn’t include the coins and tokens that made investors jump.
Blockstream: Bitcoin mining company rises to become the next crypto unicorn