In what was supposed to be a revival of the cryptocurrency market, major news across the globe which revolved around the sector did not go down well with the industry.
Among them are Silvergate Bank, one of the mainstream cryptocurrency companies which said it was in financial crisis due to its exposure to bankrupt crypto exchange FTX.
The fallout from Silvergate led to a tanking of the market with billions of dollars wiped off due to large sales.
Aside from Silvergate, the United States of America (USA) was reported by several major news outlets to have made plans to counter crypto wash sales.
Millions of traders have used crypto wash sales to shield themselves from paying their fair share of capital gains taxes.
Unfortunately, the new budget plans will see every crypto trader making a substantial sum in gains pay double percentage digits in taxes.
Due to the United States being an integral part of the financial markets due to the billions of dollars, traders pour into the market, the fallout from Silvergate and the beginning of the end of crypto wash sales led to a falling market during the first full week of March 2023.
Among them, Dash (DASH), Litecoin (LTC), Immutable X (IMX), and Lido DAO (recently listed on JPEX) were negatively affected.
Despite the negatives, Kava (KAVA) fought against the tide and was among the few digital currencies to bring in gains to investors.
Dash (DASH) was among the worst-performing coins after it saw a 30% decline
DASH, the native asset of Dash, is an open-source blockchain and cryptocurrency focused on a cheap and fast decentralized global payments network.
As one of the pioneer cryptocurrencies which has brought awesome gains to traders and investors over the years, DASH plunged by 30% within the period.
DASH opened at $67.33 on Sunday, March 5, and increased to $68.70 (weekly high) on the same day. After negative market sentiment engulfed the market, the cryptocurrency declined to a weekly low of $44.54 on Saturday, March 11, and eventually fought back to close the day at $46.65.
While trading volume increased due to selling pressure, market capitalization plummeted to $519 million from $725 million.
Litecoin (LTC) plunged more than 20%
LTC is among the well-known cryptocurrencies in the market. As the second cryptocurrency added to the market in 2011, many stakeholders refer to the cryptocurrency as the silver coin to Bitcoin’s label as the gold of all cryptocurrencies.
LTC shed 22% of its price within seven days thanks to closing at $69.71 on Saturday, March 11 after it opened the week at $89.29 on Sunday, March 5.
LTC reached a weekly high price of $91.68 on March 5 and tested a weekly low price of $66.68 on March 11.
While various price prediction portals foresee LTC climbing to retest old highs in the future, its market value dropped to $5 billion during the close of the week after beginning the period at $6.5 billion.
Immutable X (IMX) declined by 17%
As one of the main constituents of the non-fungible token (NFT) sector, Immutable X has become one of the most sorted projects in the blockchain technology, and cryptocurrency world.
Its novel token, IMX, opened on Sunday, March 5, with a trading price of $0.9904.
Despite the effects of negative news, the token reached a weekly high price of $1.15 on Wednesday, March 8, and dropped to a weekly low price of $0.7693 on Saturday, March 11.
IMX closed the week on March 11 with an improved trading price of $0.8188 and this saw the cryptocurrency’s market capitalization decline from approximately $892 million to around $712 million. Overall, IMX plunged by 17%.
Lido DAO (LDO) by 15%
LDO, the novel token of Lido, a liquid staking solution for Ethereum was added to JPEX during the week but did not have a great week.
LDO descended by 15% after opening the week on Sunday, March 5 with a trading price of $2.55.
LDO reached a weekly high price of $2.69 on March 5 and tested a weekly low price of $2.02 on Saturday, March 11.
LDO closed the week with a new price of $2.15.
Despite the negative press, Lido’s total value locked (TVL) was around $8.57 billion on Sunday, March 12 with the majority of liquidity locked in Ethereum followed by Solana, Moonbeam, Moonriver, and Terra Classic.
Kava (KAVA) increased by 25%
KAVA is the native asset of the layer one blockchain that combines the speed and interoperability of Cosmos with the developer power of Ethereum, Kava. KAVA was the only positive for cryptocurrencies on JPEX as it spiked by 25%.
KAVA reached a weekly high price of $0.9858 after opening the period with a trading price of $0.7898. KAVA’s market capitalization decreased to $342 million from $389 million.