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HomeMarketsCrypto market wrap; Celsius coin keeps falling, Acala burns

Crypto market wrap; Celsius coin keeps falling, Acala burns

Celsius Coin continued to fall on Tuesday as the crypto market continued to roll with punches. – Photo: Shutterstock

The Acala network burned off excess tokens as the Celsius coin continued to drop on Tuesday and the cryptocurrency market continued to roll with punches.

CEL fell 16% around the time traditional markets closed in North America. (All numbers are based on CoinMarketCap data.) The drop follows Monday’s 23% plunge. Overall, however, prices have shown resilience in the face of the crypto winter.

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USD to CEL

Coin knows volatility

CEL knows volatility well, Celsius network collapsesand fellow crypto lenders voyager digital and hedge fund operators Three Arrows Capital collapsed.

All three companies have filed for bankruptcy protection after being hit by the collapse of the original Lunacoin and the related Terra USD stablecoin.

But Tuesday’s decline in the CEL was an outlier compared to the rest of the market, which rose slightly.

CHZMore to US dollars

Investors are still hungry for Chiliz

Dogecoin (DOGE), a popular meme token, gained the most with a relatively modest 10% gain.

Chili’s (CHZMore) After gaining 13% on Monday, it rose 8% and continued to appeal to investors. However, there were no other notable gains and losses were minimal.

ACA to USD

burn confirmed

Acala Network confirmed on Twitter that it has burned about 1.3 billion ACA after receiving approval from the community.

Acala (ACA) fell slightly after the weekend’s hacks. ACA collapsed in value as the stablecoin lost its peg. Hackers used a flawed liquidity pool to create 1.3 billion additional tokens. Acala Network, the coin’s backer, has managed to keep them within the Polkadot (DOT) blockchain. (The network works with Polkadot.)

Analysts Doubt Acala Can Recover

Leading analysts question whether ACA can recover lost value.

“Algorithmic stablecoins, in this case Acala, a stablecoin that is collateralized against other currencies and not pegged to the US dollar, has once again shown itself to be vulnerable to attacks by smart contracts. said Chris Terry, Vice President of Enterprise Solutions at US-based Open Render SmartFi.

“Once a stablecoin is depegged in this way, it is very unlikely that it will be reverted.”

He said that both Tether (USDT) and USDC are pegged 1:1 to the US dollar and are the safest stablecoins to invest in.

“Algorithmic and multi-collateralized stablecoins pegged to other crypto assets continue to carry a much higher risk than most people realize,” Terry said. When it comes to coins, there really is no reason to use anything other than Tether and USDC.”

Hodlnaut seeks protection from creditors

Troubled Singapore-based crypto lender Hodlnaut announced Tuesday that it has applied for protection from creditors. The company has applied to the Singapore High Court to be placed under judicial control.

Hodlnaut said the application is the best solution in situations trying to avoid having to liquidate customers’ crypto assets. Debted lenders froze transfers and swaps earlier this week, citing difficult market conditions.

Bitcoin and Ether lose momentum

Bitcoin (BTC), the market leader, and Ether (ETH), the main coin of the Ethereum blockchain, have lost their place after recording recent gains.

Bitcoin fell just below $24,000 and Ethereum fell below $1,900 after surpassing $2,000 over the weekend.

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photo of coin

Zeon Network

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