Bitcoin has lost nearly 30% of its value in the past 30 days as a series of liquidations by major crypto holders spurred the token’s massive dumping.
This in turn severely affected sentiment towards the crypto market, causing most major altcoins to plummet. The world’s largest cryptocurrency is now barely holding above $20,000, its weakest level since late 2020.
Ethereum also suffered losses of a similar magnitude, losing 31%.
But the weakness of the two biggest tokens caused investors to turn to other altcoins. An increasing number of buyers have flocked to cryptocurrencies linked to projects with a high level of utility.
These include exchange tokens such as Binance coin (BNB) and FTX Token (FTT), growing blockchains such as Polygon (MATIC), as well as DeFi tokens such as UniSwap (UNI).
Uniswap the best performing crypto of the last 30 days
Uniswap, the largest DeFi exchange, has seen its governance token, UNI, significantly outperform the crypto market in the past 30 days. UNI rose 26% to $6.06, outpacing Bitcoin and Ethereum.
Much of these gains came from growth in trading volumes. Trading on the DeFi exchange has risen amid fears that a number of centralized exchanges could suspend withdrawals. Uniswap Fees Earned Through Trading Briefly surpassed those of Ethereum in June, indicating an increase in trading volumes.
Liquidity issues at crypto lenders such as Celsius and Voyager have also spurred growing calls from the crypto community for traders to take custody of their tokens.
Binance, FTX Tokens Enjoy Perceived Stability
Compared to Bitcoin and Ethereum’s heavy losses, Binance’s BNB and FTX’s FTT losses were much more moderate.
BNB is down around 18%, while FTT is down 7% in the past 30 days. FTT benefited from the offer of FTX and Alameda Research to bail out several embattled crypto firmsbuilding confidence in the stability of the exchange.
BNB has taken advantage of crypto exchange Binance to reassure investors that it has enough cash reserves to weather a crypto winter.
In addition to having strong projects backing the tokens, both also have regular buyback mechanisms, ensuring that their prices will be supported over the long term.
It also helps that these tokens have a clear spend utility in products that are less cyclical in demand than most Web 3 projects today.
Similarly, Polygon’s MATIC – which is down around 3.8% in the last 30 days – has also benefited from the blockchain is rapidly expanding its reach.
The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.