Crypto Market Continues To Follow A Downturn As Most Top Tokens Plunge

The cryptocurrency market continued to dip as top tokens including Bitcoin and Ethereum showed no signs of recovery. Nine of the top 10 tokens traded in the red Wednesday.

The global market cap was down 4.32 percent at $1.40trillion, as of 5.23 a.m. ET, CoinMarketCap data showed.

Bitcoin shed 1.49 percent to trade at $31,268. Ethereum, too, plunged 0.29 percent to $2376. Barring a slight surge in USD Coin, all other top 10 tokens traded in the red. Meme cryptos Shiba Inu and Dogecoin plunged too.

Terra(LUNA) has had a whirlwind of a week with the token tumbling at an alarming rate.

According to WazirX's daily analysis, LUNA plummeted by almost 85 percent in the last six days dropping below $5 from a steady price of $88. The token was trading at $4.28.

"The debacle began when Terra’s algorithmic-based stable coin TerraUSD(UST), which is pegged against the dollar, fell sharply to almost $0.6. With that, Binance, one of the top global crypto exchanges, temporarily stopped the withdrawal of UST and LUNA. This led to a cascading effect on the prices of LUNA, spiraling it out of control," WazirX trade desk told International Business Times.

However, the industry largely remains optimistic about the growth of the market ahead.

Global exchange Coinbase has released its Q1 report, which shows the company has incurred a loss. Despite volatility and uncertain market conditions, the exchange is optimistic that the market will bounce back because of a deepening engagement from users and increasing institutional adoption.

"The first quarter of 2022 continued a trend of both lower crypto asset prices and volatility that began in late 2021. These market conditions directly impacted our Q1 results. But, we entered these market conditions with foresight and preparation, and remain as excited as ever about the future of crypto," the financial results report said.

Meanwhile, CoinDCX said: "(despite the market bloodbath) Funds continue to plow capital aggressively into the space, the latest being a $725M investment by a16z, Coatue, USV for Dapper’s Flow blockchain. The future of crypto and blockchain remains a bright one, with steady advancements already seen along the technology’s S-curve."

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