Frightened by escalating tensions between Ukraine and Russia, the crypto market continues to decline. The leading layer of coins recorded significant losses. While Avalanche, Solana, and Fantom fall more than 10% in the last 24 hours. The fact is that geopolitical factors significantly reduce crypto assets. The crypto market declined. Investors took the risk amid reports that Russia had sent troops to Ukraine as peacekeepers. However, growing tensions seem to cause uncertainty in the markets; Which is why investors rotate their assets far beyond the risk curve.
However, it is worth noting that the first-tier coins seem to have suffered the most from the fall. Avalanche, Solana, and NEAR recorded a double-digit drop of more than 10%. The two largest cryptocurrencies also took a hit, though less. Bitcoin has fallen 4.2% in the last 24 hours. Ethereum was down 5.6%.
The broader market, metaverse, and gaming brands such as Axie Infinity and Decentraland declined; MANA fell 9.3%. AXS was down 8.1%. Both are trading significantly lower, given their record highs. MANA is $2.60. This is a 56.5% drop from its all-time rate seen three months ago; Specifically $5.85. Meanwhile, AXS trades for around $50. This is 70% less than its record high.
It is worth noting that current geopolitical factors also affect prices. U.S. inflation rates have recently reached a 40-year high. In response, the Federal Reserve is raising interest rates. Growing tensions over the Russia-Ukraine conflict and the regulatory uncertainty surrounding cryptocurrency over President Biden’s alleged executive order are also reflected clearly in the market.
It is worth noting that the traditional promotions were not much better either. MOEX controls the 50 most significant and most liquid Russian companies. After the public speech of Vladimir Putin on the issue of Ukraine, it fell about 10% yesterday.