Author: Frank, PANews
On August 5, the global financial market ushered in "Black Monday". The violent shock in the crypto market caused by this also caused many whale to be liquidated, further exacerbating the depth of the decline.
According to PANews statistics, the average maximum drop of 317 spot trading pairs on OKX exchange from their peak in the past half month reached 44%, among which DEGEN token with the largest drop reached 73%, BTC with the largest drop of 30%, ETH with the largest drop of 41%, and SOL with the largest drop of 43%. The drop of 93 tokens exceeded 50%, accounting for nearly 30%.
MEME coin saw the biggest drop
High volatility is a notable feature of MEME coins. Among the tokens that have fallen by more than 60%, about half are MEME coins. In addition, another feature of this round is that some high-market-cap MEME coins such as DEGEN, TURBO, WIF, MEW, and FOXY, which were newly launched in 2024, have fallen by more than 60% in this round of decline. On the other hand, the declines of old MEME coins such as DOGE and SHIB are between 40% and 44%, which is similar to the decline of mainstream tokens such as ETH.
In addition to MEME, the performance of several large airdrop projects launched this year was also unsatisfactory. ZK and ETHFI also fell by more than 60% in half a month.
“Ancient” projects are more resilient or no one is interested
In the ranking of the most resilient projects, except for stablecoins, Tether Gold and Tether Euro, the remaining projects are all projects that were issued a long time ago, such as KAN (2012) and WAX (2014). The GFT with the largest increase is the gift-giving agreement issued in 2017. Its founder passed away in February 2023. The project is currently in a community-governed state. In the recent period, the token market suddenly began to rise against the trend, from 0.014 on April 13 to 0.05526, an increase of nearly four times. Especially on August 4 and August 5, when the market was in a slump, it rose 100% against the trend, attracting market attention.
The reason why early projects are resistant to declines, judging from the trading situation, may be that most projects have been in a low trading state after a long period of decline. Therefore, in the case of drastic market fluctuations, these projects appear to be more outstanding due to their low liquidity or even inability to fall. From another perspective, these old projects have been separated from mainstream funds, so the market seems to be more independent.
The average rebound is nearly 20%
From August 5 to 6, the market experienced a rebound trend of valuation repair after an excessive decline. In terms of the strength of the rebound, the overall average rebound reached 19.7%. From this perspective, the market's sentiment for buy the dips is still relatively strong after the plunge.
Among the tokens that rebounded more, MEME coin once again performed outstandingly, and its leveraged property was once again demonstrated. In addition, SOL rebounded 26% from the bottom, becoming the mainstream coin with the strongest rebound among the top ten tokens by market value. ETH rebounded 19% and BTC rebounded 13%.
Whale are divided: some are buy the dips, while others continue to liquidate
Some whale also took this opportunity to buy the buy the dips and increase their positions. On August 6, Semler Scientific, a US-listed medical technology company, announced that it had purchased an additional 101 bitcoins for $6 million. Since announcing the adoption of a bitcoin asset reserve strategy on May 28, 2024, the company has purchased a total of 929 bitcoins for a total of $63 million.
However, the market still has differences, and some whale are still selling tokens. The most well-known one is Jump Trading. From July 24 to August 5, Jump Trading was pointed out to have cashed out $440 million. According to Lookonchain monitoring, on August 6, Pump.fun sold 18,000 SOL tokens at $133, worth $2.46 million. On August 6, 0x6229 and Metalpha deposited 19,557 ETH (worth $48.14 million) and 10,000 ETH (worth $24.5 million) to Binance respectively.
270,000 people lost their positions, and practitioners raised funds online
According to Coinglass data, the total contract liquidation in the cryptocurrency market in 24 hours on August 5 was $1.223 billion, of which $959 million was for long orders and $264 million was for short orders. The total liquidation amount of BTC was $459 million and the total liquidation amount of ETH was $379 million.
On social media, it is rare to see pictures of people making profits in this round of fierce market. However, there are many stories of leverage liquidation. A blogger named xiaohezi claimed that he had opened a long position for five months and was eventually liquidated, losing more than half of his assets. The blogger claimed that he had used 2,000 yuan to make a profit of 3 million.
Another former Synthetix financial director, SynthaMan, had an even worse experience. He said that due to liquidation, he lost all his SNX, which was the only cryptocurrency he held and had never sold before. In the past half month, SNX has fallen by 45%. At present, SynthaMan said that he still has five children to support, and has publicly looked for a suitable job on social media, and has disclosed his wallet address to seek donations.
Every time the market hits a waterfall, it becomes a nightmare for many people, but after suffering a heavy blow, many people still have confidence in the market. KOL @DefiIgnas analyzed: "It was a brutal impact, but DeFi stood up strongly: 1. The Lido stETH withdrawal team did not increase significantly; 2. There was no major LST decline: WeETH fell 1%, EzETH fell 0.6%, and stETH fell 0.4% from ETH; 3. ETH Gas soared to 370 gwei and is currently stable at 20; 4. There is no major DeFi liquidation risk unless ETH falls to $1,771 and WBTC falls to $31,000."
The correlation between the crypto market and the mainstream financial market has become stronger with the issuance of ETFs. Overall, the market is still in an unstable stage. PANews will continue to pay attention to market changes. The above content is not intended as investment advice.
