As the crypto market is volatile in nature, gets impacted by various factors. This article gathered the top 10 coins affected by a Bitcoin decline
While Bitcoin has almost become an interchangeable word for cryptocurrency, its price has a major influence on the value of other digital currencies. The majority of crypto coins follow the price fluctuations of Bitcoin, with their prices rising and falling in relation to Bitcoin. This is due to the fact that most cryptocurrencies are traded in regard to Bitcoin, and the trading volume between them is extremely high. Furthermore, once traders are bullish on Bitcoin, they are more likely to invest in other crypto assets as a consequence. In this article, we gathered the top 10 coins affected by a Bitcoin decline.
- Ethereum- Ethereum is one of the top 10 coins, that easily gets affected by Bitcoin’s decline. If bitcoin falls, there is a 75% chance that Ethereum will fall as well, but Bitcoin cannot be used as a recognized currency on the Ethereum platform because Ethereum and bitcoin operate on different protocols and their procedures are unrelated to one another.
- Tether (USDT) – Tether belongs to a group of stablecoins that were among the earliest and most well-liked. Stablecoins are cryptocurrencies designed to limit volatility by tying their market value to a currency or other external reference point. The majority of digital currencies, including major ones such as Bitcoin, affects their price. The coin has frequently undergone periods of significant volatility.
- USD Coin (USDC)- USD Coin, similar to other stablecoins, maintains a stable value by being pegged to the U.S. dollar, however, affected by Bitcoin. It achieves this by holding fiat currency in reserve that’s equal to the amount of USDC in circulation.
- Binance Coin (BNB)- Binance is a utility cryptocurrency utilized for paying trading fees on the Binance Exchange. With its high market capitalization, BNB is the third-largest cryptocurrency. Its value often fluctuates in response to market changes, with investors who primarily invest in Bitcoin being among those who influence it the most.
- Binance USD (BUSD)- Binance USD is a stablecoin tied to the U.S. dollar that was introduced by the Binance cryptocurrency exchange. It is authorized by the New York State Department of Financial Services and falls under the oversight of Bitcoin value.
- XRP- XRP is the original token of the XRP Ledger, which Ripple established as a payment network in 2012. It more likely depends on Bitcoin and thus is more susceptible to price fluctuations.
- Cardano (ADA)- Cardano is a cryptocurrency that was developed with a research-driven approach by cryptography experts, mathematicians, and engineers. The network and its corresponding native coin are interrelated and impact one another. The Cardano network has an impact on the value of ADA coins and vice versa.
- Solana- Solana has suffered significant losses due to the insolvency of Bankman-Fried’s crypto exchange FTX and his hedge fund Alameda Research, both of which had invested in the token. In 2022, the coin’s value has plummeted by 94%. Moreover, Solana is now encountering a similar decline as Bitcoin’s value is dropping.
- Dogecoin- Dogecoin prices can be influenced by macroeconomic factors such as interest rates, inflation, and other coins like Bitcoin that affect investors’ confidence in riskier alternative assets. As interest rates rise, people may find savings accounts more attractive and opt to invest in places that offer a predictable return, which can impact the price movements of cryptocurrencies.
- Polkadot- Polkadot’s objective is to link chains by operating as a sharded blockchain within a unified network, enabling chains to execute transactions concurrently and share data with one another. As a result, Polkadot’s value is influenced by fluctuations in other markets.
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