Cryptocurrency market seeks recovery: Bitcoin, Cardano, Ether, Solana

Over the past 24 hours, the cryptocurrency market capitalization rose to $911 billion, adding 0.5%, in the last week the market recovered by 6.5%. The numbers are very low compared to last year, but the market is slowly recovering, with some of the cryptocurrencies growing more than others.

Bitcoin

In December, bitcoin began to gradually stabilize compared to previous months amid the ongoing market decline.

Although bitcoin closed the year at one of its worst levels in 13 years, at -64%, bitcoin nevertheless reduced its volatility sharply over December compared to other assets. The 30-day volatility at the end of 2022 was at 27.9%, just above its lowest level in 12 months.

As FTX fell in early November, bitcoin dropped below $15,500, then recovered and held above $16,000. And in the first half of December, the price held near the $17,000 level. On December 17, bitcoin fell in price to $16,500, and the first days of January were marked by a 5% rise in the bitcoin price.

Etherium

Etherium is also having a good start to the year.

The one-year low in the value of Etherium was recorded in June 2022. Since then, the price has not fallen below that level, even despite FTX headwinds.

At the end of December, Etherium added 11% from its nearly $1200 level.

Ether may not have been the best performing cryptocurrency last year, but the merger gives us hope that the asset will be resilient despite the headwinds.

Solana

Solana has endured the toughest end of 2022 relative to other cryptocurrencies. SOL/USDT trading volume was down 80.6%, while BTC/USDT fell 42.6% and ETH/USDT lost 57%.

The end of December last year recorded a 12-month low of $8.4 for SOL.

But the beginning of January 2023 was encouraging for Solana, as the number of weekly active user addresses rose from 378.2 million to 490.5 million.

Since January 2, Solan’s value has almost doubled in 2 weeks, rising to $16. But to recover to the November level, which preceded the general fall due to the events of FTX, has not yet succeeded.

However, the cryptocurrency has a lot of potential, as evidenced by the rapid growth at the beginning of the year.

Cardano

Cardano leads the way among the top ten cryptocurrencies at the moment.

Since December 31 the cryptocurrency grew as much as 25%, passing both BNB, which added 14% and Polygon with its +13%.

At the same time, last year was also marked by extraordinary losses for Cardano: the currency lost 81.2% of its price at the beginning of the year. This has only happened once before: in 2018, Cardano lost 94.3%.

The pace of the cryptocurrency’s recovery is also encouraging for investors and suggests that this is not a simple bounce from the low, and the coin is about to recover.

Experts are in no hurry to talk about a complete reversal, but believe that the anxious sentiment of investors has subsided. However, the development of events will show us the further dynamics soon.

Bottom line 

Experts’ forecasts about the future of cryptocurrencies are that the assets will have a difficult year. There may be more losses, but large institutional investors do not stop investing in cryptocurrencies. Banks offer to process transactions and make savings in cryptocurrencies.