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The post Solana, Polkadot, And Cardano Bog Down In Quagmire This Market Cycle? appeared first on Coinpedia – Fintech & Cryptocurreny News Media| Crypto Guide

The crypto market has been stuck in a rut. As the much-talked-about supercycle escorts the digital assets to yet another series of corrections. The coin market has shed market capitalization by about 5.1%, which is now at $2.25 trillion. The fear and greed index of the crypto industry is currently at extreme fear at a degree of 21. 

Which is up since the previous day’s rating of fear. Meanwhile, FUD has been creeping in the space, as digital assets in the directories continue to signal “RED”. The shift in the market cycle has been concerning not one but many in the industry. In the interim, a crypto advocate sheds light on the plan of action for utility projects like Solana, Cardano, and Polkadot.

Are Utility Projects Now In Jeopardy?

The crypto advocate enlightens that the market has pumped to uber levels every time it has gone to extreme fear levels. He is bullish on the industry in the long term, despite the short-term being the other way round. The plot of the fear and greed index rhymes with that of the star cryptos. Where the digital asset has seen bullish moves following corrections in September.

Utility projects like Solana, Polkadot, And Cardano have had miserable price projections on the charts. While Solana and Polkadot have sketched greener numbers prior to the corrections. Cardano has been range-bound despite the ecosystem excelling at utility fronts.

Solana: 

The Ethereum killer has seen a decrease in price off-late. The reason for this is expected to be the relatively slow blockchain production for the past week. The drop in network speed, with the TPS falling. And the recent DDOS attack. Which collectively have supplemented the corrections in the market. 

Polkadot: 

  The network analytics has been hampered by concerns revolving around capital outflows from the altcoin network. The investments the protocol has received in view of the para-chain auctions are now moving towards profit-yielding assets. Wherefore, the protocol is witnessing an increase in the outflow of capital.

Cardano:

The fall of the statistics with Cardano has been the concerns about the network’s ability to roll out new updates at a quick and efficient pace. Which has been tormenting the growth of the network. Despite the blockchain receiving impetus in the form of DEXes, dApps, amongst others. However, big money investors continue to HODL the digital asset, for its fundamentally flourishing traits. 

Collectively, while Polkadot and Solana still hold positions to get in. The statistics with Cardano could seem bleak until a major update rolls out. However, the projects built on the Cardano network might seem apt in the short term. Hopefully, the switch in the market cycle makes way to the alt season, which could help digital assets rebound from current blues.

5 thoughts on “Solana, Polkadot, And Cardano Bog Down In Quagmire This Market Cycle?

  1. First off I wanna send my condolences to anybody that was affected by this.

    Last night we all witnessed one of the craziest moments in crypto and will defiantly have a major impact on the markets and crypto moving forward. From the ways that stable coins will be looked at by The FEDS and may lead to stricter rules and regulations. Not only that I think a lot of people that believed in crypto lost trust and are definitely uncertain of the space.

    We seen a crypto that hit its ATH last month basically drop 70% in 24h. I'm not talking about just any crypto I'm talking about a top 10 coin that also had its stable coin in top 10. At that we also seen the stable coin drop at one point by %39.

    There is alot of theories out there that this was a planned attack on the stable coin and there were lots of red flags in the past as well. With everything going on in the world, this is the sort of thing that was needed to push us down to some scary numbers.

    to everyone effect hold your heads you didn't do anything wrong, we were let down by something we believed in and we have to prevent this sort of issue from happening again.

  2. Key facts to consider –

    Prior to the crash 40% of UST was locked in Anchor with no unlock period(?) – however other staking protocols have an unlock period of multiple days to get your UST back. The price of Terra is at $15.45 with a marketcap of 5.7B The depeged marketcap of UST is 13.68B if the price was pegged the marketcap would be 16.52B. If you want to get out of UST you have to burnt $1 of UST and convert it to $1 of Terra to then sell.

    What does all this mean? 16.52B is currently locked in an asset and has to be sold in the form of an asset that has a market cap of 5.7B.

    I get Terra people will say its self correcting algorithm but if a further run on UST continues, the price of Terra will continue to crash as more people burn UST and get/sell Terra to get out any money that they can.

    Unless people continue to buy Terra in anticipation of a recovery the 5.7B marketcap will drain faster than the UST marketcap and even if they do a bloated supply of Terra could still lead to a lower price

    The remaining people will be left with UST and a worthless crypto to convert it to. It doesn't matter if you can convert it to Terra as the supply surges and the price drops and nobody wants to buy it.

    ——————

    What we could potentially see is the supply of Terra swell and the price drop as the marketcap stays somewhat solvent assuming you can continue to transfer 1 to 1 from UST to Terra regardless of the price. In this scenario the people transferring last will get the most Terra but in a crypto that has it's price cut drastically. As the UST in total gets transferred into Terra and people aren't buying Terra the price would then begin an uncontrolled death spiral.

    However what I’m not sure about is how the discounted UST applies into the 1-1 conversion

    ——————

    TLDR – A crypto with a 5.7B marketcap is supporting 16.52B in a stablecoin – Supply of Terra is going to swell, marketcap might not drop as quickly as UST gets transferred into Terra adding supply – Price of Terra will continue to nosedive.

    Edit: In response to that's not how it works people will burn Luna to get UST or will buy UST to regain the $1 peg. Answer the question – Why would someone buy a stablecoin that is supported by an underlying asset that is 1/3rd of the value of said stablecoin.

  3. It's a silent project that operates in the background. There's no face to it. The founders created it and walked away. It's like an elegant clock set into motion that continues to tick away. There's no promise of some complex protocol to come 3, 5, or 10 years down the road. It does what it's supposed to now without self promotion from the founders. Since it doesn't need self promotion to thrive, it doesn't fall victim to the vices of marketing from greedy, charismatic leaders, with overly complex projects. Sure, there's Saylor and Novogratz that sometimes fall into that role. But bitcoin doesn't need them to survive and won't need them when they die. The project works now. It does what it's supposed to and it'll continue to do what it's supposed. It's the money of the future of our science fiction novels.

    There's no Krypto Kris to market shitty debit cards. There's no charismatic Do Kwon doing a Forbes, Steve Jobs photo shoot with a black t-shirt and a white background. There's no J Powell to magically expand the money supply with a cobol fueled wand to create a 9 trillion USD balance sheet.

    BTC takes out the corruption of humans, because the humans that created it stepped away. Sure, people will build corrupt systems around it, but BTC itself is a simple, pure, and elegant vehicle that will silently tick away in the background until the ticking becomes so loud that no one can ignore it.

  4. Yes it’s one of those annoying posts 😄 I recently got rekt by the Luna/ust fiasco, over all lost 28 k, but kept my job, family & sanity.

    It’s not that I don’t believe in this space & it’s potential (including Luna), but I realized it was taking some much time & effort to the point that I was ignoring my friends & family. Don’t get me wrong; money is amazing & it can help us do nice things to ourselves & loved ones, but the constant attention I was giving to crypto (it’s also my bad) was too much.

    I have withdrawn what’s left, removed all social media and crypto related apps/sites.

    Even though I lost so much money but honestly I feel relieved and free. I wish each on of you all the best of luck, try to manage your time & enjoy life.

    Peace!

  5. There has been a surge in chains being halted for whatever reason. DDOS, network instability, bug are common explanations given for why the chain was halted.

    If you dig into these incidences, it seems all of them were halted after discussions on discord groups by the validators of the chain and all of them arrived at the conclusion that given the situation its better to halt the chain till the issues are ironed out.

    How can these kind of validators be expected to keep a chain up if governments of the day decide it is required to shut the chain down? They wont, they will fold immediately. The effort required by a government agency to shut these chains down will be minimal.

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