In the last 30 days, Bitcoin has lost almost 30% of its value, in a series of liquidations of major crypto holders spurred by mass dumping of the token.
This in return, sentiment towards the crypto market has plummeted, resulting in a decline in most major altcoins. The world’s largest cryptocurrency, Bitcoin is now barely holding above $20,000, its lowest level since late December 2020.
Similarly, Ethereum has also suffered losses of about 31%.
However, weakness in the two largest tokens has resulted in investors turning their attention to other altcoins. An increasing number of buyers have moved to cryptocurrencies tied to high utility projects.
These include exchange tokens such as Binance coin (BNB) and FTX Token (FTT), growing blockchains such as Polygon (MATIC), as well as DeFi tokens such as UniSwap (UNI).
UNI, the governance token of the largest DeFi exchange Uniswap, outperformed the crypto market over the past 30 days. UNI increased 26% to $6.06, blazing past Bitcoin and Ethereum.
Trading on the DeFi exchange has seen an increase in trading due to fears that a number of centralized exchanges could suspend withdrawals. Trading fees earned by Uniswap briefly surpassed Ethereum’s in June, an indication of increased trading volumes.
There’s a growing call from the crypto community to traders to take self custody of their tokens due to liquidity crunches in crypto lenders such as Celsius and Voyager. In comparison to Bitcoin and Ethereum, Binance’s BNB and FTX’s FTT have suffered from a much lesser loss.
BNB is declined about 18%, while FTT has lost 7% in the past 30 days. FTT has benefited from FTX and Alameda Research reaching out to bail out several struggling crypto firms.
Crypto exchange Binance has reassured investors that it has enough liquidity stores to withstand a crypto winter, which has benefited BNB.
These tokens have strong projects backing them, as well as having regular buyback mechanisms, which ensures that their prices will be supported in the long run.
Similarly, Polygon’s MATIC, which went down to 3.8% in the past 30 days, has also benefited from the blockchain’s rapid expansion.