Crypto Selloff Continues as Altcoins Struggle
Ripple, Stellar and several other altcoins declined sharply on Tuesday, as the crypto market correction entered its second day.
Crypto Market Tumbles
The total market capitalization for cryptocurrencies reached a low of $682 billion on Tuesday, according to data provider CoinMarketCap. That was the lowest level in almost a week, when the market was charting new record highs.
At the time of writing, the overall market cap was $708 billion. The share of altcoins was nearly 67%, with bitcoin accounting for the rest.
In just 12 months, bitcoin’s share of the market has declined from nearly 90% to just over one-third.
In percentage terms, altcoins were the biggest laggards, with Ripple, Cardano and Stellar posting double-digit declines.
Ripple’s XRP token touched a session low of $1.90, its lowest since New Year’s day. The cryptocurrency was last valued at $1.96.
The hottest crypto asset of 2017 underwent a technical correction over the weekend before news of a bitter court battle between Ripple and bank consortium R3 consumed the market. The dispute, which centers on an options contract, escalated after Ripple filed a counterclaim accusing its blockchain rival of acting in bad faith. Last October, Ripple announced it had won a critical court case over who can keep millions of XRP tokens. Those tokens are now worth at least $12 billion.
Last week, XRP pushed north of $3.00 before running into a major technical hurdle. Now, the market finds itself moving back toward support levels near $1.80.
A coin by the name of Cardano made headlines last month after it spring boarded into the top-ten list of cryptocurrencies. The ADA token was down more than 13% against the dollar to trade at 78 cents. Prices peaked at $1.32 on Jan. 4.
Cardano failed to generate any momentum after it announced the ADA token will be listed on the futures exchange Bitmex. The cryptocurrency, which is based on the Ouroboros proof-of-stake algorithm, is now supported by six exchanges.
Distributed hybrid blockchain Stellar Lumens suffered a fresh selloff Tuesday, and now trades more than 40% below all-time highs. The XLM token was down more than 12% at 56 cents U.S., for a market cap of nearly $10 billion.
Stellar is slowly emerging as a viable platform for initial coin offerings (ICOs), with Mobius Network recently launching its token on the smart contract system. The software data provider raised $35 million in its pre-sale, with 32,000 investors participating. The full ICO will launch Jan. 18.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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