What's Happening in the World of Cryptocurrency Today
Date: 2024-09-06 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
Why Are Cryptocurrencies Falling Today?
The global crypto market capitalization has fallen by 0.7% to $2.08 trillion over the past 24 hours. The total cryptocurrency trading volume for the day was $77.9 billion.
Most of the top 100 coins showed growth today. Helium (HNT) became the leader of the day, its value increased by 8.4%, reaching $8.17. Dogwifhat (WIF) is also close to it, having increased by 8% to $1.59. Other coins rose by less than 7%.
Among the "red" coins, MANTRA (OM) and LEO Token (LEO) each fell by 4.7%. OM is trading at $0.914, while LEO is trading at $5.58. The rest of the coins in this segment are down less than 3.6%.
Now about the top 10 coins by market cap: six of them have shown growth in the past day. The leader was Solana (SOL), which grew by 3% and is trading at $132.42. Dogecoin (DOGE) increased by 2.15% to $0.09745, while the rest of the coins grew by less than 1%.
At the same time, Ethereum (ETH) and Lido Staked Ether (STETH) showed a slight decline - about 0.4% each, trading at $2.392. And Bitcoin (BTC) has practically not changed on the day and is trading at $56.730 at the time of writing.
At the same time, the Bitcoin network has seen a noticeable decrease in activity, reaching levels not seen in the last three years. The number of active addresses, which reached 1.2 million in mid-March, fell to 744,000 in August, the lowest since 2021.
However, centralized crypto exchanges showed a noticeable increase in trading activity in August for the second month in a row. Total trading volume increased by 5.38%, reaching $5.22 trillion.
Short-term holders are the main risk group
According to analytics firm Glassnode, on average, Bitcoin investors have relatively small unrealized losses compared to previous cycles, indicating a favorable position. However, new investors are on average in the unrealized loss zone.
The analysts noted that short-term holders' losses remain high, making them the main risk group. These losses have not yet reached the level of a "full-blown bear market," but are reminiscent of the "volatile period of 2019." However, these holders could become a source of selling pressure in the event of further declines.
The total amount of unrealized losses remains historically low at 2.9% of Bitcoin’s market cap. Therefore, overall, investors are still in the black.
Binance’s market share has grown for the first time in five months
Major crypto exchange Binance has seen growth in the spot market for the first time in five months, increasing its share to 29.0%, according to data from analytics company CCData. At the same time, its share in the derivatives market fell for the third month in a row and amounted to 42.7%.
At the end of August, Binance led the combined spot and derivatives market on centralized exchanges (CEX) with a market share of 38.7%. Meanwhile, trading volumes on the Bybit exchange continued to grow, reaching new records: 9.89% in the spot market and 15.9% in the derivatives market.
Factors driving up trading activity include spikes in volatility caused by weakness in traditional financial and digital asset indices following a sell-off in the Japanese yen.
