The crypto market depression is also a bill between the chips | CryptoNews

The contraction of the cryptography market does not only include cryptocurrencies. Tokens also carry their quota of red numbers with projects that have lost ground, due to the downward trend that has been maintained for most of the year 2018. A recent study by the firm Diar notes that " Token volumes have dropped the major trading houses. "

The report indicates that, although the chips have grown during the first 10 months of the year, this advantage was lost in November. The report notes that "102 of the 410 tokens increased their volumes by more than 100% between January and October. November shows that this number has been reduced to 91 in less than a month. The remaining chips, which have seen their volume increase slightly, are just a few. "

Diar does not mention the chips that were evaluated, but indicates that the study was conducted on eight trading houses: Binance, OKEx, Huobi, Bitfinex, Kraken, Poloniex, Bittrex and HitBTC. The company explained that the valuation analyzed only the tokens exchanged at the beginning of the year and continuing to be listed on the aforementioned platforms. "The volumes are based on the actual token and not on a conversion to fiat or crypto-currency pairs," the article says.

The study also indicates that, when comparing liquidity between exchange houses, this one varies significantly. For Poloniex, "all the listed tokens have a lower trading volume than the beginning of the year"; in the case of Bittrex, there are only three. Add this: "More than 75% of the chips added to the exchange offices this year saw their volumes decline in full between October and November "

Token behavior

For example, an examination of the behavior of certain chips shows that OmiseGO (OMG) has seen a drop in its price since its highest price of 2018 on January 8th. At that time, the chip was quoted at $ 26.14. The current value is $ 1.40, a decline of 95.10% since then.

Evolution of OmiseGO prices in 2018. Source: CoinMarketCap.

A similar scenario occurs with the basic attention token (BAT), which on January 9, 2018, it traded at $ 0.86 and its current price is $ 0.13, a depression of 86.36% of its highest price. 0x (ZRX) is another bearish token that, on Jan. 13, was trading at $ 2.37 then falling to $ 0.34, a drop of 86.43% of the maximum price. reached 11 months ago.

Tokens are generally issued in initial currency offers (ICOs) as a financing mechanism. Every project, looking for money, emits a certain amount on a blockchain platform such as Bitcoin, Ethereum or Waves. They are then delivered to investors in exchange for cryptocurrencies or, in other cases, in exchange for national currencies such as the dollar or the euro.

The fall suffered by Bitcoin throughout the year affects the rest of the cryptoactive solution. Indeed, an important part of the marketing goes through the exchanges with BTC. In addition, we must remember that Bitcoin currently maintains a 54% dominance of the crypto market. When the main cryptocurrency falls, the others follow the same path, although much more often, because bitcoin always generates greater trust in investors.

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