Bitcoin’s $ 100 billion sharp Sale drags down the price of all major cryptos – except one

Bitcoin and cryptocurrency traders are eyeing a sea of ​​red on today’s exchanges as major cryptocurrencies plummet.

The price of bitcoin has dropped from over $ 35,000 per bitcoin last night to less than $ 33,000, currently down nearly 10% on the last 24 hours in a continuation of sales that have wiped over $ 100 billion of the total cryptocurrency’s total value world in a week.

Bitcoin collapse has dragged on 10 other top cryptocurrencies, with ethereum, Ripple’s XRP, litecoin and cardano all down between 5% and 10% – health polkadot, an opponent of the second largest cryptocurrency, has managed to hold grasp its recent earnings.

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Polkadot’s dot token has climbed a staggering 450% since August, soaring in the midst of a surge of interest in decentralized finance (DeFi) – using bitcoin and cryptocurrency technology to recreate traditional financial products like loans and insurance.

The polkadot price exploded in late December and has continued to climb through January, successfully sustaining its rally even as bitcoin dropped from its peak of over $ 40,000.

While polkadot, along with most other major cryptocurrencies, has benefited from the recent bitcoin price boom, crypto viewers believe its rally means that polkadot will increasingly compete with ethereum, the blockchain that ‘ Most DeFi protocols run on it.

“While competitors to ethereum are making great strides and benefiting from the ongoing market rally, I think it is highly unlikely that these competitors will overcome the network effects that ethereum has built,” said Luis Cuende, cofounder of Aragon’s decentralized app platform, by email.

“However, until ethereum 2.0 is fully operational, polkadot, cosmos and close are well placed to capture meaningful market share.”

The highly anticipated launch of ethereum 2.0 is expected to improve scalability and security on its network, along with the booming DeFi market that is almost completely built on top of the ethereum blockchain, this week pushed the price of ethereum above its high -time early-2018 high.

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As large institutional investors look to bitcoin increasingly, there is growing interest in smaller cryptocurrencies that could play a role in building a more decentralized internet.

“While bitcoin is considered a macro inflation asset, ethereum has the potential to be the foundation for a new decentralized capital market infrastructure,” said Seamus Donoghue, vice president of business development at Swiss digital asset infrastructure startup Metaco.

“New protocols such as cardano and polkadot are also competing for the basic infrastructure play but whatever the merits of their protocols there is a need to overcome the considerable developer mentality and network advantage that ethereum currently has.”

Bitcoin and ethereum currently make up the vast majority of the value of the global cryptocurrency market, accounting for about $ 750 billion of the $ 950 billion market total.

“It’s early days but the entire sector looks cheap compared to bitcoin,” Donoghue added.