Altcoins Sell Off Immediately After Stablecoin Volume Drops

Attempts to post sustainable recoveries in the cryptocurrency market have continued to fail this week, starting with Bitcoin’s failed breakout to $60,000 on Thursday. Meanwhile, there has been a noticeable decline in stablecoin volumes to a seven-month low of $970 million. At first glance, this outlook may not be eye-opening, however, a deeper assessment may lead altcoin investors to sell this weekend to avoid the rabbit hole.

According to a report on the state of the stablecoin industry, June marked the third consecutive month of declines: 18%, mostly in USDT. Bind is the most dominant stablecoin, “accounting for 78.4% of the volume among the top 10 stablecoins by market cap.

Stablecoins are often the on- and off-ramp in the cryptocurrency market sector. They also help facilitate most of the trading in the market. Therefore, a persistent drop in volumes could suggest a decline in interest among traders.

For this reason, it may be prudent to consider selling altcoins before further price declines overwhelm cryptocurrencies.

3. Altcoin to sell – Slerf (SLERF)

Slerfo It is one of the most significant incidents in the cryptocurrency market, and that was a good thing. The project advertises itself as a fun and engaging experience meme coin for the community. However, it was not fun during the launch, as the developer accidentally burned all the tokens, i.e. liquidity and airdrop allocations. The combined value of the burned tokens exceeded $10 million.

SLERF price subsequently increased as market participants called it the most secure meme coin on the blockchain. After reaching an all-time high of $1.3, 7.7 times its launch price, SLERF started to retrace and is currently at $0.186, down 86%.

Slerf continues to enjoy the title of the most liquid meme coin on Solana and has continued to secure partnerships in the Solana ecosystem. 24-hour trading volume for SLERF increased by 4.6%, indicating that investor interest in the token is increasing.

SLERF price is hovering near a critical level. If it falls below this level, it could reach new all-time lows.

2. Referee (ARB)

Over the past week, ARB has traded in a range of $0.6825 to $0.733, marking a significant 17% increase in its value. The cryptocurrency reached its all-time high of $2.40 six months ago, but has since dropped significantly, currently trading around $0.69.

Referee
ARB Price Chart | CoinGecko

Despite this decline, recent performance indicates a positive trend, recovering from the all-time low of $0.5773, recorded just seven days ago.

Second DeFiLlamaArbitrum price currently has a total value locked (TVL) of around $2.829 billion. In the last 24 hours, the platform has seen inflows of around $9 million. Additionally, Arbitrum’s treasury holds $44 million and the platform has raised $123 million to date.

The price of Arbitrum is currently experiencing a significant decline in a bearish market environment. If this negative sentiment continues, the value of Arbitrum could stabilize at $0.68. If the market conditions deteriorate further, a decline to $0.67 could occur, reflecting a deeper bearish impact. A more intense decline could cause the price to drop back to $0.68.

In reverse, Arbitrary price could enter a bullish phase if investor sentiment improves. A market reversal would likely push its value above the $0.70 resistance level. If it continues on this path, the cryptocurrency could approach $0.90. It could even reach $1 in the near future.

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Frequently Asked Questions (FAQ)

The term altcoin is used to refer to cryptocurrencies that are alternatives to Bitcoin. Ethereum is the most dominant altcoin.

Stablecoins are cryptocurrencies that are pegged to real assets like the dollar to smooth out price fluctuations, making them ideal for everyday transactions in the cryptocurrency world.

It depends on individual investors and their goals and understanding of the cryptocurrency market. The current correction could be interpreted as a time to buy, especially if the selling pressure decreases.

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