Altcoins See Major Correction, SOL Dips 12%

This week has started with a huge challenge for cryptocurrency assets. While Bitcoin is struggling to maintain its $900 billion market cap level, some of the altcoins have plunged by more than 15% within the last 24 hours. Solana (SOL) is one of them.

SOL dropped by more than 12% on 6 December and gave up all the weekly gains. In fact, the crypto asset is now down by over 15% in the last 7 days, which makes it one of the worst-performing digital currencies among the top 10.

XRP, Polkadot (DOT), Shiba Inu (SHIB) and Dogecoin (DOGE) declined by over 10% within a single day. Every crypto asset among the top 20 is in the red today. As a result, the crypto market dominance of BTC and ETH has spiked sharply in the past 24 hours.

In total, the market cap of digital assets dropped by $200 billion today, which means that the overall value of digital currencies has crashed by more than $700 billion in the last 10 days. The market cap of altcoins like SOL, Cardano and XRP have dipped heavily during the mentioned period.

Bitcoin and Ethereum

In comparison to altcoins, Bitcoin and Ethereum have remained steady in the last few hours. While the top 2 digital assets have dominated the crypto liquidations in the past 24 hours, the most recent 4 hours show a sharp jump in the liquidations of crypto trading positions related to FIL, MATIC, SAND, SOL, XRP and BNB.

“Bitcoin and ether suffered a major flash crash over the weekend, sending crypto values down by some 20% at points. Prices have now recovered somewhat, but both cryptos remain trading well below pre-weekend levels. Both crypto assets have regained a measure of stability since, with prices rebounding modestly. Speculation has been rife over what caused the flash crash, with some analysts citing the expiry of leveraged positions. Other evidence meanwhile points to significantly increased activity with investors moving crypto assets from wallets to exchanges,” Simon Peters, Market Analyst at eToro, said.