Source: Crypto Pro
The crypto markets were in a bloodbath on Tuesday as macroeconomic factors, and technical signs played a major role in how things turned out.
The Algorand, Avalanche, and Cosmos tokens were among the biggest losers in the hit on the crypto market. This came in the wake of some Asian stocks that fell due to a move to less risky assets.
Avalanche token (AVAX) fell by 11% to a support level of $77 from $130 at the time of writing this news. That took it to almost a 50% loss from its highs. Other drops happened with algorand (ALGO), which dropped to $1.32 and cosmo (ATOM), which dropped to $21.37.
The drops come after the tokens of the base (layer 1) blockchains have enjoyed some gains. These layer 1 blockchains are unofficially called “Ethereum rivals” as they are cheaper and faster for transactions.
These tokens have enjoyed a significant rise over the past few months before the recent drop. For example, ATOM traded at $9 in June and climbed to $43 in September. Over the same period, ALGO went from $0.74 to $2.38, and AVAX rose from $11 in June to a peak of $134 in November.
The platform also saw a rise in development as the prices increased. Projects like Wonderland and Abracadabra gained tokens worth billions of dollars. Decentralized finance (DeFi) projects also locked value on Avalanche, which rose to a whopping $13 billion last week from $3.6 million in February.
Despite how strong the basics of these crypto tokens are, analysts say investors are looking for investments with lesser risks as the broader market takes a hit. The border crypto market decline happened in the wake of a weak bitcoin price action. One of the tokens in the Ethereum layer 2 Polygon fell 10%, and tokens of Polkadot fell 9%. Metaverse tokens GALA and SAND also fell by 11%.