$510B crypto sales wipe out 2024 for top 50 coins
More than half of the 50 largest cryptocurrencies by market capitalization are in the red following the biggest crypto selloff in more than a year.
The total market capitalization of the entire crypto market saw a decline of $510 billion.
Following the sale, more than 60% of the top 50 cryptocurrencies in 2018 fell. They lost all their gains in 2024, CryptoQuant author Binhdang wrote in an August 6 X post:
After Black Monday, 60 percent of the 50 coins have eliminated all gains or even suffered losses since early 2024.
Following the selloff, Ether (ETH) briefly fell to a five-month low below $2,200. Missing this psychological signal can invite more panic selling and bearish pressure for the entire market.
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What caused the crypto market selloff?
The wild crypto market selloff was caused by a combination of macroeconomic and industry-specific developments.
In the year On August 5, the Bank of Japan announced that it will raise interest rates from 0% to 0.25%.
Japan's decision had a direct impact on the US stock market and bitcoin prices as traders borrowed Japanese yen at low interest rates to buy assets in the US market.
Meanwhile, as of August 3rd, five top market makers sold a total of 130,000 Ether worth $290 million, while the price of Ether dropped from $3,000 to $2,200.
The market makers are Wintermut, who sold over 47,000 ETH, followed by Jump Trading, over 36,000 ETH, and Flow Traders, with 3,620 ETH, in third place.
Ether production from market makers has contributed significantly to the decline in Ether prices.
RELATED: Bitcoin Price Decline Could Last 2 Months – Analysis
Memecoins will see the biggest losses led by WIF and PEPE.
Looking at the 50 biggest tokens by market capitalization, some of this cycle's most popular memecoins took the biggest losses.
On the weekly chart, Solana-based memecoin Dogwifhat (WIF) saw its biggest loss last week, falling more than 41% to trade at $1.38 as of 8:37 am UTC, August 6, according to Cointelegraph data.
Frog-themed memecoin Pepe (PEPE) saw its second biggest weekly loss, falling 34% to $0.057781, which is more than 53% higher than the high recorded in late May.
Since memecoins have no intrinsic value, their price increase is mainly driven by social media chatter and the attention of retail investors. As a result, meme tokens are often hit hard during crypto market corrections.
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