The crypto space witnessed massive selloff on Thursday (24 February) after Russian President Vladimir Putin ordered military operation in Ukraine.
All the major crypto prices like Bitcoin, Ethereum and Cardano have plummeted this week amid rising tension between Russia and Ukraine. Although a pall of gloom hangs over the crypto market at the moment, the long-term potential of some of the cryptocurrencies still remains intact.
In this article, we’ll look at cryptos that have been hit the hardest and might witness recovery once the dust settles down.
Recent article: A beginner’s guide to blockchain: Public vs private vs consortium
Ethereum (ETH)
Ethereum (ETH) was trading at US$2,641.14 on Friday (25 February). It was down around 46% from its all-time high on 10th November 2021. In the meantime, the crypto has tumbled 8% in one week.
Ethereum, launched in 2015, is an open-source, decentralised blockchain system with its own crypto, Ether. ETH serves as a platform for decentralised smart contracts execution. Smart contracts allow transactions between two or more parties to be carried out anonymously and without the intervention of a third party.
Furthermore, Ethereum’s blockchain may contain other cryptos, defined as “tokens,” thanks to its ERC-20 compatibility standard.
Currently, Ethereum uses a proof of work (POW) model, in which miners need to solve complicated puzzles to validate transactions, which demand a lot of computing power.
Hence, the Ethereum team has chosen to implement an upgrade shortly to make the crypto more resilient to compete with Bitcoin.
Ethereum will shift from proof-of-work to a proof-of-stake (POS) method, which will need less computing power to validate transactions. This upgrade will make Ethereum faster while also saving energy and time.
ETH has been severely harmed due to Russia’s invasion of Ukraine, however, it still has enormous growth potential owing to its decentralised blockchain and smart contracts. Furthermore, the possibility that ETH would change from POW to POS means it may not easily give up the race to dethrone its competitor Bitcoin.
Cardano (ADA)
Cardano (ADA) was trading at US$0.858385 on Friday. It has dropped 72% from its all-time high on 2nd September 2021. Meanwhile, the crypto is down 16% in one week.
Introduced in 2017, Cardano is one of the largest blockchains capable of employing a proof-of-stake (POS) consensus method, which consumes less energy than Bitcoin’s proof-of-work (POW) method. POS facilitates the processing of transactions and creation of new blocks on a blockchain.
Moreover, Cardano comprises two layers – the computational layer and the Cardano settlement layer (CSL).
Cardano settlement layer allows developers to build apps on their platform while also keeping track of them digitally. And computational layer enables developers to build decentralised apps and new business models.
Although, the crypto has significantly suffered due to the current circumstances in Europe, it still has growth potential owing to its POS method and the two layers that it employs.
XRP (XRP)
XRP was trading around US$0.699895 on Friday. It was down 79% from its all-time high seen on 7th January 2018 and has fallen nearly 8.6% in one week.
Developed as a replacement for Bitcoin, XRP crypto intends to make cross-border payments more affordable, rapid and secure. To maintain transaction data, XRP, like Bitcoin, uses a public ledger called XRP Ledger.
The XRP Ledger (XRPL) is a global developer community-led decentralised, public blockchain. This ledger is quite popular among developers due to its reliability, energy efficiency and speed.
Moreover, it offers developers a robust open-source foundation for delivering on the most challenging projects while minimising environmental impact, thanks to its skilled community, ease of development and cheap transaction costs.
In addition, XRP is based on a digital payment platform known as RippleNet. RippleNet is a real-time gross settlement (RTGS) system which seeks to facilitate immediate monetary transactions all over the world.
Despite the fact that XRP has been severely hurt due to the European crisis, it still has the potential to expand owing to its XRP Ledger blockchain technology and RTGS system, which enable quick monetary transactions globally.
Stellar (XLM)
At the time of writing this article on Friday, Stellar (XLM) was trading at US$0.183857. It has dropped 79% from its all-time high on 3rd January 2018. In the meantime, the crypto has fallen 9.3% in one week.
Stellar is an open network for storing and moving money. Jed McCaleb launched Stellar in July 2014.
Many people are concerned about fees, and this crypto has very low transaction costs. You may use Stellar to create, exchange and transmit digital representations of any form of payment, including Bitcoin, pesos and dollars. It was built with the goal of bringing together all of the world’s financial systems on a single network.
Like other cryptos, XLM too has been severely impacted by the Russia-Ukraine conflict; however, it has the potential to expand in future due to its ease of transaction and cheap transaction costs.
Binance coin (BNB)
BNB is trading at US$366.07 on Friday. It is down 47% from its all-time high recorded on 10th May 2021. Meanwhile, the crypto has tumbled 9.3% in one week.
Binance, which debuted in July 2017, is the world’s largest crypto exchange worldwide in terms of the daily trading volume. Binance aspires to put crypto exchanges in the vanguard of global financial activity.
Moreover, Binance is a one-of-a-kind decentralised blockchain ecosystem. In several nations, the firm has cemented its position as the major crypto exchange. Binance has reaped the benefits of growing investor interest in the Binance coin since its launch.
Last thoughts
The crypto market is extremely volatile, and the ongoing Russia-Ukraine crisis has led to a significant selloff in the crypto space. It cannot be said with certainty how long the price correction will continue. Potential investors are advised to proceed with caution when dealing with their hard-earned money in the crypto realm.
Recent article: Cryptocurrency beginner’s guide: Proof of Work vs. Proof of Stake
Disclaimer: Crypto is a very risky space, a lot of spams are noticed around this and a thorough due diligence is needed when looking at the same.
This news is republished from another source. You can check the original article here
Be the first to comment