The Bitcoin (BTC) and altcoin markets lost a total of $602 billion overnight from the Elon Musk shock. The billionaire entrepreneur changed his mind about accepting bitcoin for electric vehicles from the Tesla company. He addressed environmental concerns, noting that mining Bitcoin requires burning large amounts of fossil fuels, especially coal. The Bitcoin price began to plummet late Wednesday, five minutes after Musk’s tweet started in the US.
The price fell further during Thursday’s Asia Pacific session, hitting an intra-day low of $46,000 at one point, breaking from the previous session high of $59,592. Altcoins followed Bitcoin after an overnight loss. Combined, it has lost more than $367 billion of its market cap and has seen massive downward revisions in several significant altcoins. One of them is Dogecoin (DOGE), the meme cryptocurrency that recently exploded thanks to Musk’s backing. Ethereum (ETH), Binance Coin (BNB), Bitcoin Cash (BCH), and Litecoin (LTC) also reported significant intraday losses after gaining in the previous daily session.
Aave
Aave performed well, with nearly all of the top altcoins dropping. The ERC20 token, which acts as a governance token on top of the Aave protocol, closed Wednesday’s session up 11.62% at $511, despite hitting an all-time high of $640 this morning. Musk’s anti-Bitcoin announcement had an impact on Aave, like other altcoins. However, unlike its competitors, Aave has proven more resilient to sudden bearish pressures.
The token maintained a bullish entry, trading around $589 as of 8:13 AM GMT on Thursday.
Essentially, it protected Aave from a severe bear attack. First, Aave founder Stani Kulekhov revealed that his decentralized fiat currency protocol created a private pool for institutional players. He noted that the new permission pool would serve as an emulator for investors who want to familiarize themselves with Aave’s lending and lending services before participating in the decentralized finance ecosystem.
Prospects for institutional engagement remained optimistic for Aave. The positive sentiment also helped Aave’s expanding liquidity pool. The DeFi analytics platform DefiLlama now has $12.83 billion from about $2 billion earlier this year.
Alpha Finance (ALPHA)
Almost entangled in the altcoin crash, the following asset pulled nonetheless is Alpha Finance. It is currently running its own leveraged income farming protocol called Alpha Homora, a decentralized asset management platform that allows users to propose and vote on operational and strategic decisions if they own the native token ALPHA. You can also earn ALPHA by providing liquidity to the Alpha Finance pool.
Elon Musk’s shock gave the ALPHA a sigh as it tested a two-month high for a potential bullish breakout after a dominant bullish move on Wednesday. The ALPHA/USD exchange rate fell nearly 23% from Wednesday’s high of $2,465. The pair rebounded thanks quickly to growth fundamentals support, including the start of a new partnership and the continued success of the Alpha Homora protocol.
Total trading volume locked in the Alpha Homora pool crossed $1.35 billion on Monday from $1.37 billion today. At the beginning of 2021, the total locked value was approximately $188.5 million. The splash shows that Alpha Homora has been successful so far. The
ALPHA/USD pair recovered more than 20% in Thursday’s session and followed the Alpha Homora TVL move. Meanwhile, Alpha Finance announced the launch of the Alpha Oracle Aggregator, which includes data from the two largest data oracle providers, Band Protocol and Chainlink, to ensure security, scalability, and flexibility.
Ethereum
On Wednesday evening, the positive correlation between Ether (ETH) and Bitcoin showed a modest decline in gains. However, the second-largest cryptocurrency by market cap was more robust over the medium term, along with Aave and Alpha Finance.
The most critical aspect of Ethereum’s decline was its ability to sustain above its crucial support level (moving average wave) despite its strong correlation with the Bitcoin trend. The ETH/USD exchange rate closed the previous session at $3,826, down nearly 8.45% from Thursday’s intraday high of $4,055.
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