Newton Gitonga
The altcoin space exhibited notable selling pressure today, with trending sectors like perpetual decentralized exchange coins taking a massive hit.
Coingecko data shows the market value of all perp DEX tokens declined by 5.7% from $19.45 billion in the past 24 hours to $18.39 billion at press time.
That indicates over $1.08 billion in losses over the past day.
Furthermore, their trading volume has dropped to $2.65 billion, reflecting a lack of interest in perp tokens in the past 24 hours.
Individual assets confirm the dire condition after significant dips on the daily chart.
Aster and XPL have suffered notable slides on their daily timeframes, as even Robinhood’s listing failed to spark interest.
These plunges come amid broader weakness.
Bitcoin remains stuck around $110,000 as Ethereum threatens a dip below $4,000.
Perp DEX coins lead the downside
While bears dominate the digital currency landscape, perpetual DEX projects were among the hardest hit today.
The global crypto market cap shed 0.55% the past 24 hours to $3.77 trillion.
On the other hand, perpetual tokens lost nearly 5% of their value in the timeframe.
For context, Perp DEXs are platforms that enable users to execute leveraged positions on their favourite cryptocurrencies without centralized entities.
They have attracted traders with their transparency and massive leverage, which can mean magnified returns or considerable losses.
Tokens linked to perpetual decentralized exchanges have gained traction as on-chain trading attracts attention.
For example, Hyperliquid’s HYPE rallied to all-time highs above $50 in August amid broad market struggles.
Also, the likes of Aster and XPL grabbed attention with their impressive price rallies.
Nevertheless, the current sentiments have confirmed how sensitive these tokens are during volatile markets.
ASTER leads the downside with a 10% plunge in the previous 24 hours.
Considerable losses also came from CAKE, DYDX, APEX, and Avantis, which adopted a single vault this week.
Ethereum price outlook
The largest altcoin by value hovered around a key foothold today, hovering at $4,036 at the time of this publication.
Ethereum displays weakness after plummeting from the weekly high of $4,385.
Bears threaten declines below the psychological mark at $4,000.
That might trigger further dips or extended sideways, deteriorating momentum in the entire altcoin space.
Crypto trader and X user @Karman_1s highlights $3,800 as the vital barrier for ETH prices.
The chart shows Ethereum gaining momentum after its latest slump, rebounding from the support region at $3,850 – $3,950.
The zone has previously absorbed bearish pressure, and buyers have likely defended it.
The trader expects Ethereum to climb to the short-term target of $4,440 before breaking out to $4,737.
Moving past this zone would change the alt’s trajectory to bullish, and possibly welcome fresh all-time highs above $5,000.
However, short-term declines to retest $3,950 – $4,000 could materialise before sustained gains.
The post Altcoins today: perpetual tokens shed over $1B as Ethereum stalls at $4K appeared first on Invezz
