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- 1 Ahead of the US inflation report and potential asset sales by the failed FTX crypto exchange, a massive decline is experienced in the crypto market.
- 2 Digital assets including Bitcoin (BTC) and Ether (ETH) slumped between 2% to 4% at the start of the week.
The running week hasn’t brought good news for the crypto market, mainly for the digital assets that rule the crypto environment. The US inflation report and asset sales by the bankruptcy exchange so-called FTX crypto exchange surpassed.
What’s Happening with BTC and ETH?
The week is not going well for the crypto ecosystem, mainly for the top 20 cryptocurrencies. The market has a shaky start to the week ahead of asset sales by FTX and the US inflation report.
On Monday, the market capitalization of most of the digital assets declined between 2% to 4%. BTC and ETH are two assets experiencing a drop. Bitcoin (BTC), one of the oldest and strongest crypto, dropped by 2% to $25,000 whereas Ether (ETH) dropped by 3.5% to $1,560. The price fall occurred on the average volume, reflecting that investors lack conviction in the digital asset market’s path. Traditional assets including the S&P 500 are no exception, experiencing a drop of 0.4% in the past few days.
In addition, Solana (SOL), one of the biggest assets on the FTX platform, went down by 9% in the past seven days. Other players in the list include BitDAO (BIT), Ripple (XRP), and Aptos (APT) which fell by 9.5%, 6.7%, and 8.7%, respectively.
Big news related to the FTX plan to begin selling assets is expected from the US court on September 13. FTX crypto exchange has revised its plan to sell billions of digital assets.
On Monday, the bankruptcy exchange submitted a court filing declining the crypto holdings of FTX.US, FTX, and related trading firm, Alameda Holdings.
If the plan gets approved by the US court, FTX will Offload between $100 Million and $200 Million worth of crypto. The limit set for the first week is $50 Million and $100 Million thereafter. Based on the court filing, the crypto exchange holds around $1.1 Billion worth of Solana, major positions in Aptos (APT) and Stargate (STG), and hundreds of millions in BTC and ETH.
In the past seven days, the majority of the top tokens by market cap lost their positions, including 12 tokens with a loss of more than 7.5%. However, some of the tokens just broke the trend, gaining double-digit profits. Tellor (TRB), Perpetual Protocol (PERP), and Flamingo (FLM) with hikes of more than 40% are some record-breaker tokens on the list.
Performance of Ethereum Layer 2
Despite the ups and downs in the crypto market, Ethereum’s layer 2 continues to grow. Based on the report of L2beat, an analytics and research website for the Ethereum Layer 2 system, On September 10, the layer posted an all-time high of 55.4 transactions per second.
The performance of Ethereum Layer 2 is at an all-time high.
Conclusion
In the past week, a huge decline has been observed in the top cryptocurrencies including BTC and ETH. Ahead of asset sales by the failed FTX crypto exchange, and the US inflation report, the crypto market suffered ups and downs.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
