Bitcoin (BTC) And Overall Crypto Market Cools Down
Ripple (XRP), Cardano (ADA) and Stellar (XLM) Gain Value While Crypto Market Recedes
Unless you own Ripple (XRP), Cardano (ADA), or Stellar (XLM), it’s a bloodbath in the cryptocurrency market as the overall cryptocurrency market cap tanks 12% losing over $90 billion in a single day.
After a few weeks of the bull rally and moving closer to its all-time high of $20,000, Bitcoin (BTC) is drenched in deep red losing over 10% in the last 24 hours and trading closer to $17,300 levels at press time. In a single day, BTC has lost nearly $40 billion of its market cap.
If we are to look at the historical chart patterns of 2017, we can expect a 30% correction in the BTC price, meaning, it could go all the way up to $14,000 before recovering its way to the all-time high and above.
This sounds like a reasonable idea on the surface, but it is a bad idea in practice because it is often impractical to collect identifying information on a recipient in the cryptoeconomy. Let me explain why.
— Brian Armstrong (@brian_armstrong) November 25, 2020
Bitcoin’s free fall has a ripple effect on the market as all of the altcoins lose anywhere between 10-25%. Wednesday’s crypto market crash has wiped out all weekly gains for BTC and many other altcoins who were outperforming over the last week.
Ethereum (ETH) has lost over 13% in the last 24 hours but has held up its position strongly above $500. Despite this massive crash, ETH price remains over 10% positive on the weekly charts.
Some of the other top-performing altcoins for the week have crashed majorly. Ripple’s XRP has tanked 23%, Cardano’s ADA has tanked 20%, Litecoin (LTC) has tanked 16%, Polkadot (DOT) 15%, and Stellar Lumens (XLM) by 21.7%.
Top Performing Altcoins For the Week; Ripple (XRP), Cardano (ADA), and Stellar (XLM)
In our last post, we noted how Ripple’s XRP has been the show stealer with weekly gains over 100% two days back. On Tuesday, November 24, XRP’s price hit its new 2020-high of $0.75 surging to these levels for the first time in two years.
We also explained some of the fundamental reasons behind XRP’s price surge and why there’s a major investors’ rush to grab the world’s third-largest cryptocurrency.
Well, even after today’s 23% market correction, XRP’s weekly gains stand at over 85%. At press time, XRP is trading at $0.54 with a market cap of $24.5 billion. On Tuesday, XRP’s weekly gains stood at a massive 160% but the recent market crash has chopped half of it.
Santiment, the on-chain cryptocurrency analysis provider noted “One encouraging metric for #Ripple holders is its ‘Development Activity’ and its long-term upward trajectory”. It also added: “The daily social volume (mentions on #crypto platforms) of $XRP is on the verge of surpassing $ETH for the first time in 7 months”.
The other top-performing altcoin over the last week is Stellar Lumens (XLM) with a whopping 104% returns at press time. XLM surged to a massive 170% by Tuesday, however, is down to 100% weekly gains after Wednesday’s market crash.
XLM price skyrocketed after Stellar blockchain developers announced the implementation of a new version of Stellar public network protocol by validators. The Protocol 15 upgrade came into effect this Monday, November 23, and aims to reduce the complexity for users using apps and services based on the Stellar blockchain protocol.
The Protocol 15 upgrade also allows developers to address the biggest pain points while building applications and services. The announcement reads “After the upgrade, developers can create simpler, better user experiences that abstract away the complexity of blockchain, and do it without losing any of the advantages of a fast, cheap, and permissionless public ledger.”
At press time, XLM is trading at a price of $0.16 with a market cap of $3.5 billion. Even after the recent correction, XLM is trading at 300% year-to-date returns.
The last altcoin on our list with excellent weekly gains is Cardano (ADA). Even with Cardano’s ADA crashing 20% in the last 24 hours, it is trading at 30% positive gains over the last week.
Charles Hoskinson, the CEO of IOHK and the founder of Cardano has been constantly updating the community through his YouTube channel for the new updates coming to the platform.
There are two major upgrades coming to the Cardano platform before the end of 2020. One is that the Cardano (ADA) will get full hardware wallet support by the end of November. The firmware for the Trezor wallet will be available in the first week of December while that of the Ledger wallet shall be available by mid-December.
Hoskinson also noted that a Hard Fork Combinator (HFC) is scheduled for the next week and will be the first event related to its latest hard fork Goguen.
On the other hand, Cardano and Litecoin developers are working on establishing interoperability between the two blockchains through a velvet hard fork. This hard fork will allow changes to be made to the base code without needing majority consensus. All-in-all some positive developments in the Cardano blockchain have triggered its price to North.