Crypto On Feb. 1: Market Back In Green; Solana, Terra LUNA Rise Significantly

The cryptocurrency market majorly traded in green Tuesday with Solana and Terra Luna being the major drivers. The global market cap,rose about 5% to $1.77 trillion as of 3.14 a.m. ET.

Bitcoin rose 3.65% to $38,525. Even as the top coin has shrunk in its market cap, the coin still retains its first-mover advantage, investment firm Fidelity Digital Assets noted.

Ethereum, too, gained 8.56%, CoinMarketCap data showed.

Barring a slight downward movement in USD Coin price, all other top 10 cryptos were trading higher. Solana surged 17.16%. The support came after crypto firm Paradigm invested in Solana's Dapp Phantom, and two of its tokens, FIDA and ORCA, Indian exchange BuyUCoin noted.

"Within minutes of the news, the price of FIDA and Solana skyrocketed, the BuyUCoin research team told International Business Times.

Terra LUNA too gained 16.54%.

Industry insiders are calling it to be a "fundamental shift" in the market sentiment.

"We see all the top 20 cryptocurrencies march back in black, with Near Protocol (NEAR) registering a 38% weekly gain to enter the top 20 crypto list by market cap," Pratik Gauri, Founder and CEO of the blockchain ecosystem 5ire told International Business Times. "As soon as the tensions generated by the stance over Ukraine cools, the Russian government will again make reasonable concessions on allowing crypto investments."

Indian Finance Minister Nirmala Sitharaman has announced in the Union Budget 2022-2023 that a 30% tax would be charged on income from the transfer of virtual digital assets and no set-off will be allowed for losses.

The crypto market is extremely volatile and experts recommend investors not make decisions based on the sudden shift in prices.