n the beginning of October 2024, Bitcoin, Ethereum, and gaming tokens took heavy losses amidst wild turbulence in the cryptocurrency market. Investors are becoming increasingly nervous as Bitcoin crashes from its previous levels, causing market-wide liquidations.
Ethereum also tends to suffer massively due to the increased competition of the market and the ever-evolving landscape. Meanwhile, two new gaming tokens, HMSTR and CATI, issued have lost over 50% of their value since high hype in their initial days, which raises several questions about the sustainability of such tokens.
Bitcoin Crashes Causing $300M Liquidation
Bitcoin crashed on October 2, 2024, sending the cryptocurrency market into hyperdrive. Its price dropped to $61,600 from a $65,000 high, causing an uptick in liquidations across the market.
Based on data from Coinglass, upwards of $500 million's worth of cryptocurrencies were liquidated within just one 24-hour frame as traders and investors grappled with the downturn. Partially triggered by the outflows from the spot Bitcoin ETFs that saw extreme capital withdrawal in September, the decline got sparked.
The spot Bitcoin ETFs, once thought to be one of the significant potential bullish drivers of the market, have begun losing their fortune. This month, the increased outflows went over $150 million, casting doubt on investors' confidence in future movements of Bitcoin's price. It also helped Bitcoin slip in price, joined by broader market pressures.
Ethereum Under Pressure While Tron Soars
Ethereum, the second-largest cryptocurrency by market capitalization, showed no different extent of turbulence. On October 2, 2024, Ethereum's price fell below $2,400 driven by market-wide volatility and increased resistance from rival ecosystems such as Tron. The coin is currently trading at $2,468.
Tron is a blockchain platform which focuses on decentralized applications and smart contracts, and this has really been on the gain. It surpasses Ethereum in so many key metrics today, from the volume of transactions to user activity.
The fall of Ethereum has raised concerns that it might spiral downward, with predictions by some analysts as low as $2,100, or lower, should market conditions not improve. Competition from Tron raises pressure on Ethereum to innovate further and keep its dominance in the two fastest-growing spheres within its ecosystem: the DeFi and NFT sectors.
Gaming Tokens HMSTR and CATI Plummet Over 50% Since Launch
HMSTR and CATI are two of the most hyped tokens in the Telegram P2E sector, but both have plunged deep. Both tokens started with very high hype and within days of their releases saw the value fall by more than 50%. Such a steep fall surely raises serious questions as to the viability of all new gaming tokens, especially those that are created on grounds of speculation rather than strong fundamentals in utility or technology.
HMSTR and CATI are the respective tokens that were initially exclaimed on account of their relation to a Telegram-based gaming project. In worsening market conditions, the hype quickly vanished into thin air. The tokens shed most of their value and hit hard in the pockets of investors speculating a killing on the launches. The swift declines underpin the risks involved in investing in newly launched crypto assets, with a few escaping the hack in an extremely volatile market environment.
Recent turbulence in the crypto market has investors on edge. With all this uncertainty for the wider market, investors are keenly watching their performance in the coming weeks.
