Crypto News

Those following the crypto news have noticed a big decline in the market cap of cryptocurrencies. It’s a major setback after a year of a crypto boom. The market cap dropped a whopping -21% in March. This is the first real-world sign of a bear market. The crypto market is expected to fall for at least the next two years. However, it’s not clear if it will last this long.

Cryptocurrencies like ethereum have become increasingly popular over the last few years. These cryptocurrencies are smart contract networks, which make transactions completely decentralized. They also avoid third-party middlemen interferences. They’re also used for decentralized apps (dApps).

One of the biggest crypto market failures was Three Arrows Capital, which wiped out more than $2 billion from its accounts in less than a week. The company was one of the biggest crypto players, and its collapse caused a huge contagion in the industry.

Another failure occurred at Terraform Labs, which experienced a rapid collapse in the Luna token. This wiped out a lot of value, and many investors lost money. In addition, a major crypto exchange was hacked, leading to the discovery of $US600 million in unauthorized transactions. It also triggered a wave of panic among institutional investors.

The collapse of FTX Trading, a US-based crypto exchange, has raised systemic concerns in the industry. It was once the second largest crypto exchange by trading volume, and its balance sheet had a staggering $32 billion in valuation. However, FTX misjudged its users’ margins, and as a result, it accumulated an $8 billion balance sheet shortfall. This caused a massive meltdown, and FTX eventually filed for Chapter 11 bankruptcy protection in the U.S. Its native coin (FTX) fell 90%.

After a series of mea culpas, FTX founder Sam Bankman-Fried fled to the Bahamas. The company’s administrators, KordaMentha, are currently looking into how to recover the money that was lost by investors. They’re also working to determine if a solution can be found for local crypto investors.

Analysts say the crypto market has entered a bear market, and are predicting a continued downward trend for at least the next two years. A bear market is a period of economic recession when prices of stocks or other assets decline dramatically. This could be the longest bear market in the 14-year history of cryptocurrencies.

The worst is yet to come, however. According to Florian Grummes, a Managing Director of Midas Touch Consulting, a new bull market is expected in 2024. He believes it will be similar to the dot-com boom, which was when Google, Facebook, and Apple first came to public attention.

A new layer-one ecosystem is gaining momentum. The Solana ecosystem is gaining traction. It’s a decentralized, open-access version of the internet that uses blockchain technology. It costs little to nothing to use and transaction times are typically several days.

There’s no doubt that the market cap is down, but it will recover. The total market cap of all major cryptocurrencies is currently down about 42% from its all-time high.