Due to the Evergrande collapse, there are some ripple effects in the crypto market sliding the major crypto coins like Bitcoin and Ethereum. Following the collapse of these two virtual tokens, the crypto market dipped by 4.2% in the past 24 hours. The nonpayment of offshore bond dues, the Evergrande group, a China’s developer company, was downgraded to ‘restricted default’ recently.
The company failed to make $82.5 million which is the interest payment due. It triggered a risk of falling into the world’s second-largest economy for months. Apart from this news, some other factors too had affected the crypto world badly. One of them is the fear of the new COVID-19 variant Omicron. These factors have created effective ripples in the crypto sea which is why we can see a downturn in the market. The Bitcoin which defines the crypt future has collapsed to 15% and the second-largest virtual coin, Ethereum is down by 9%.
Even though the crypto market is down, the enthusiasm of crypto lovers is not down and we can see large trading despite the risk. In the gloomy weather of the crypto market, we can see the new signs of revival in ‘dinosaur’ coins, $XRP a d $LTC. The crypto market is expecting a gloomy Christmas this year because of the downtrend of Bitcoin.
According to a crypto expert, various factors affect the downtrend of the crypto market. These may include world economic circumstances and circumstances in the crypto market as well. Crypto market factors that affect the market are exchange listing, demand and supply, cost of mining, software updates on blockchains, and legal updates.
The same thing was said by Vikas Ahuja, member of the nascent crypto industry body Blockchain and Crypto Assets Council (BACC), and CEO, CrossTower India. Only for a few hours, the crypto values fluctuated in India due to the crypto bill. Now, the new covid variant is causing the crypto market to collapse.
Many other experts opined that many new projects are impacting the price of cryptocurrencies. Mostly by retail investors, the market is impacted as the crypto market has been dominated by retail investors. Even though the crypto market is collapsing, enthusiasts are still interested in mining as they have taken the crypto bill in India positively.
Memecoin SHIB has decreased and the DOGE has raised by 15.34%. Since Elon Musk, Tesla CEO, had mentioned that it would accept DOGECOIN as the payment method for its electric cars. Musk told the reporters that Dogecoin is the best replacement for Bitcoin for transactions. He also said that Bitcoin is not a good choice for transactional currency. The transaction volume of Bitcoin is considered to be low and it has a high cost per transaction fee.
Elon Musk had mentioned Dogecoin several times before which has moved the Dogecoin price. A suggestion of Dogecoin as a payment method has shot the price of the meme coin.
Games built on Solana would see investment from Solana Ventures, Forte, and Griffin gaming partners. Ukraine is thinking of launching its national currency on the stellar blockchain. This pilot will lead by Fintech firm Bitt and Tascombank with the support of the Ministry of Digital Transformation.
Even though Bitcoin is good for investment now since the price is at the lowest, according to JPMorgan, Ethereum is better than it. This world’s second-higher priced crypto has risen in price more than Bitcoin when compared with percentage.
The asset class of cryptocurrency has fluctuated a lot in the last month. The bog two tokens Bitcoin and Ethereum have reached their peak. The emergence of the Omicron variant has dipped these tokens badly after that. The Crypto market is one of the best to grow your asset and one of the riskiest places to swipe away your asset.
In the final month of 2021, let’s hope for some sunshine on the crypto field and find out what would be the wise investment now.
As every time, we would say that Bitcoin is the best option for long-term as well as retail investments. The dominance of this coin has never down and everyone believes in Bitcoin to be the best option for investment. In November month, it had reached its highest and because of the Omicron variant, it dipped in price now. Buying opportunities are higher for this coin as it is in its lowest state. For long-tine investors, it would be a good time to invest in this coin.
The next coin that people would trust and be happy to invest in is Ethereum. We have even seen how this coin has dominated Bitcoin for a while. This has proved its potential in the crypto market. Because of its decentralized blockchain technology, this coin is worth buying. The NFTs and Defi are now booking fields that work on the Ethereum network.
Next comes, Solana (SOL). The sudden emergence of Solana in 2021 is a remarkable story. Anyone who would believe in the growth of Defi’s will surely consider investment in Solana. This has a lower transaction fee than Ethereum with a user-friendly development network.
The next one is BNB, that is, Binance Coin. It is considered to be the third-largest token in the market cap, which is 4.1% of the total cryptocurrency market. This was designed in 2017 and has a maximum supply of 200 million coins and has a goal to reduce it to 100 million by burnings by the exchanges.
One more crypto you can consider investing in December is Polygon (MATIC). This coin is funded by Binance and Coinbase. This is built on the Ethereum blockchain and intended to have a multi-chain system. Out of those 15 top currencies, MATIC has risen its value from 2 cents to 2 dollars by now. It is expected to be the best buying token in December.
One more we have to mention is Avalanche Token (AVAX). The initial coin was introduced in 2020 which is backed by Elite Venture capital firm Andreessen Horowitz. The AVAX market quickly raised which has a trade value of $80 now from $3.17.