Among the top 50 cryptocurrencies, holders of altcoin Cardano, Polygon and Arbitrum were the biggest losers. Each of these tokens recorded almost a new year low after the last crash. It also caused more than 95% of investors to face a loss.
Holders of altcoin Cardano, Polygon and Arbitrum see red
The cryptocurrency market has also been a bit wary of institutional investors who have withdrawn their investments despite seeing inflows earlier in the month. Along with Bitcoin, altcoins are also facing a decline. Therefore, the crypto market is currently in the hands of bears. Investors are experiencing losses throughout the market. But those who lose the most are those who invest their money and faith in Cardano, Polygon and Arbitrum.
当某一山寨的链上持有者被套比例超过90%，是周期底部的机遇？亦或是无尽的终结。
数据来源：@intotheblock pic.twitter.com/5aIWriadRL
— CryptoChan (@0xCryptoChan) August 23, 2023
The decline observed in the last three weeks has caused many altcoins to fall to their lowest point to date. Some have come close to recording a new 2023 low. On the other hand, holders of altcoin Cardano, Polygon and Arbitrum took the biggest hit, with profits wiped out for most investors.
serious damages
Addresses holding altcoins ADA, MATIC, and ARB are currently facing losses as most of them buy their offerings above the transaction price. The only problem is that these addresses make up over 95% of all traders holding some tokens in their wallets. Now, historically, collapses have been followed by either a period of sideways movement in which the market has cooled. Or investors tend to save. Accordingly, this situation results in a rapid recovery.
Another consequence is the further collapse of the market and the rise of skepticism and fear. This is why losses are widening for altcoin projects. In addition, investors seek to compensate for their losses by selling their assets.
Institutional investors pull back
However, the market is vulnerable to a bearish. Therefore, individual investors may withdraw. Institutional investors have already started withdrawing their money, as evidenced by the $55 million exit from digital asset products. Institutional investors, who had ended their bearish streak the previous week, were skeptical in the week ending August 18.
Simply put, the entire market is still vulnerable to a drop. But of the top three loss-bearing assets, altcoin Polygon investors have a better chance of recovery. Cardano and Arbitrum owners remain cautious. The following days will be the days when the movements in the crypto money market will be seen clearly. On the other hand, the market is also wondering how the Bitcoin price will move.
