Global Crypto Market Drops 5.4% in Hours; Stellar (XLM) Losses Plumb New Lows
The global cryptocurrency market sunk 5.4% in just over twelve hours leading into Monday morning, and gave up $6.5 billion of its total value in the process.
Bitcoin returned to the $3,400 range – a mere $200 drop from the most recent bottom of $3,200 achieved towards the end of 2018. As expected, the majority of losses came from the altcoin market – Stellar (XLM) in particular, which just caught up with the rest of the market in terms of losses.
Months of Inactivity?
Stellar held on better than most during the November-December market plunge in 2018. While several major altcoins sunk to near 18-month lows, XLM’s drop to the $0.09 range was a low-point which stretched back barely twelve months.
However, that only makes the previous month look even worse. As the value of XLM fell to the $0.08 range on Monday morning, it signalled not only a complete lack of growth since the New year, but a definite loss at a time when several alts are up over 100% in the same period.
All of this may be further evidence in support of the notion that the market always corrects those that stray too far from the pack. Time flies in the crypto world, but you may remember that the previous quarter was filled with positive Stellar developments, and the coin price was soaring.
However, the bulwark provided by that growth against market forces now appears to have worn off following 12.3% losses overnight, and a return to 14-month lows.
Stellar Price – XLM/USD
Stellar went into freefall when the dip struck, sinking 12.4% from $0.100316 all the way down to $0.087882 – a price range not seen since late November of 2017, and almost three times the losses of BTC over the last twelve hours.
The highest concentration of trade volume comes from the ZB.COM exchange – $24 million’s worth – which unfortunately throws doubt on the accuracy of the $150 million daily volume for XLM.
There was little beyond the market correction theory to suggest Stellar would fall so far. As of Monday morning the noises coming out of Stellar HQ appeared nothing but positive.
Stellar’s decentralized exchange (DEX), Stellarport just added support for Trezor hardware wallet users, as announced over the weekend. Decentralized exchanges are often heralded as one of the future saviours of the crypto space, which still finds itself dominated by centralized counterparts.
Even if you subscribe to a more cynical view, the merger of hardware wallet and decentralized exchange is undoubtedly a positive for the average user at the moment.
Meanwhile, the internet tipping/payment processor, SatoshiPay, just recently launched three new Stellar full-nodes in locations around the globe. Nodes in Iowa, Frankfurt and Singapore will serve to secure the Stellar network – an important matter considering SatoshiPay runs its entire operation on XLM.
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.
Featured image courtesy of Shutterstock.