After having struggled for months, the crypto market entered a relief rally last week, which saw bitcoin reclaim levels of $24,000 that it had reached in June.
But, the rally was a short-lived one and the market appears to be tanking once more, as cryptocurrencies have declined again to test lower support levels.
$1 trillion market cap
According to data provided by CoinGecko, the market capitalization of the cryptocurrency market at the time of writing was slightly above the $1 trillion mark.
In the last day, the market cap has recorded gains of about 2.4%, even though it had dropped below the $1 trillion mark yesterday.
This was the first time that the total market cap of the crypto space had fallen below $1 trillion since July 17th.
Last week, Ethereum recorded solid gains as investor confidence got a boost with the announcement of The Merge date.
This refers to the process when the Ethereum blockchain will transform from a proof-of-work (PoW) network to a proof-of-stake (PoS) one that comes with scalability.
However, the last 7 days saw the coin lose about 7% of its value, but it has shown signs of a slight recovery.
The ongoing market volatility has also taken its toll on the ninth-largest crypto in the market i.e. Solana. Data from CoinGecko shows that at the time of writing, the coin was trading at a value of $37.28.
The last week saw Solana record a drop of 17%, but it had climbed by 4.79% in the last 24 hours. Meanwhile, there has been a 3.7% gain in the eighth-largest crypto, Cardano.
No coins spared
It should be noted that the correction after the brief rally last week had an impact on almost all coins in the crypto space.
There have been notable losses recorded in some of the top decentralized finance (DeFi) tokens that are used for supporting non-custodial trading, borrowing, and lending.
These include some prominent names, such as Lido DAO and Uniswap (UNI), which recorded losses but were able to make some recovery in the last 24 hours.
The last 24 hours have also brought some gains for metaverse and gaming tokens, such as Axie Infinity (AXS) and The Sandbox (SAND).
Since the start of the year, the crypto market has been recording a gradual decline in its overall value. Last year in November, when Bitcoin reached its all-time high, the crypto market cap had surpassed $3 trillion.
But, it has come down significantly since then because prices have plunged rather drastically. The most drastic movements were recorded in May, with the crash of the TerraUSD (UST) stablecoin.
As the Terra ecosystem collapsed, it resulted in liquidity issues on different platforms and this prompted many of them to freeze withdrawals. There have also been bankruptcy filings since then.
The volatility recorded at the start of the week was because of the US Federal Reserve’s meeting in which it is expected to hike interest rates once more.