Crypto market crashes as $310 billion exits total market cap

The cryptocurrency market has taken a severe beating today, with a staggering $310 billion wiped out in just 24 hours.

Notably, the global market cap, which stood at $3.56 trillion, has plummeted to $3.25 trillion, marking a 7.90% decrease. 

Total crypto market cap. Source: CoinMarketCap

The sudden downturn has rattled investors, signaling a wave of uncertainty that has left virtually no digital asset untouched.

This steep decline has been exacerbated by the pullback in Bitcoin (BTC), which fell below the crucial $102,700 level and now trades at $94,805, a drop of 6.83% for the day. Bitcoin’s dominance, however, saw a slight uptick to 57.93%, reflecting its status as the anchor of the market during turbulent times.

Pain extended to Ethereum (ETH), which tumbled 11.22% in the last 24 hours, slipping to $3,263 as the crash of the two biggest cryptocurrencies has had a cascading effect on the broader altcoin market. 

Indeed, every cryptocurrency in the top 100 by market cap is currently in the red, underscoring the widespread nature of the sell-off.

DeFi and stablecoin volumes surge

While the market cap declined, trading activity surged, with the 24-hour trading volume reaching $290.6 billion, representing a 10.90% increase. Of this, DeFi (Decentralized Finance) volumes accounted for $19.56 billion, or 6.73%of total market volume. 

Meanwhile, stablecoins like USDT, USDC, and DAI saw volumes climb to $271.51 billion, making up a hefty 93.43% of the total 24-hour trading volume, indicating that many traders are seeking refuge in stablecoins amidst the market chaos.

Altcoins follow the big two

The downturn in Bitcoin and Ethereum has deeply impacted altcoins, which rely heavily on sentiment in the broader market. 

Leading tokens like Solana (SOL), XRP, and Cardano (ADA) all saw significant losses, with double-digit percentage drops erasing recent gains. 

The sell-off highlights the high correlation between major cryptocurrencies and the altcoin market, reinforcing the dominance of BTC and ETH in shaping overall market sentiment.

Crypto market outlook

The sharp decline has left investors wondering whether this correction is a buying opportunity or a sign of deeper troubles ahead. 

Analysts point to macroeconomic uncertainties, regulatory concerns, and profit-taking after a recent bull run as potential drivers of the crash. However, with Bitcoin and Ethereum still trading well above their yearly lows, some believe the market could stabilize and rebound once the dust settles.

The next few days will be crucial in determining whether this is a temporary setback or the start of a more prolonged downturn.

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