Crypto’s getting destroyed right now, with the total market cap falling to $3.4 trillion. Major tokens like Uniswap, World Liberty Financial, and Pepe are all down double digits from their recent highs.
Uniswap dropped 21% from this week’s peak despite announcing major tokenomics changes. WLFI gave back 15% of its gains, while Pepe has absolutely collapsed 65% from its yearly high. Bitcoin’s teetering dangerously close to $100,000.
The main culprit is fear. The Crypto Fear and Greed Index crashed to 24, putting it on the verge of extreme fear territory. This index tracks sentiment by looking at price momentum, social media activity, derivatives performance, and market composition. When it’s in the fear zone, crypto typically underperforms.
Traders are still traumatized from October’s liquidation event, where 1.6 million investors got wiped out and $20 billion vanished in a single day. Every bounce attempt since then has faced heavy resistance, making people nervous about buying.
Open interest in crypto futures has plunged to $141 billion from over $225 billion before October’s crash. Uniswap’s open interest fell from $782 million to $575 million. Pepe dropped from $1.02 billion to just $198 million. WLFI tumbled from over $1 billion to $270 million.
Institutional demand has dried up too. Bitcoin ETFs lost $1 billion last week, while Ethereum ETFs have bled over $2 billion in recent months. Digital asset treasury companies like Strategy and Metaplanet have mostly stopped buying.
Conclusion
Crypto crashed, with Uniswap down 21%, WLFI falling 15%, and Pepe plunging 65% as the Fear & Greed Index hit 25 amid collapsed open interest from $225 billion to $141 billion and $1 billion in Bitcoin ETF outflows.
Also Read: Uniswap Surges
