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Cardano, Avalanche and Solana price plunge: What’s behind Layer-1 protocol market rout?

By Alara Jordan

11:26, 13 October 2022

Cryptocurrency price chart
The wider crypto market slid on 13 October with several of the biggest cryptocurrencies trading in the red – Photo: Shutterstock

Several popular altcoins including Cardano and Solana witnessed a significant drop in price as the wider crypto market also experienced a bearish sentiment. 

Cardano (ADA) dropped to as low as 0.3517 on Thursday October 13, before climbing back to $0.3828 at 11:30am BST (+1UTC) on Friday 14th, still down 9% from four days earlier. The eighth-largest cryptocurrency by market cap, ADA started the year trading at $1.31 and has witnessed a steady decline in price since, trading in the red for much of 2022.

Solana’s price also declined in tandem with several major Layer-1 coins. SOL has been trading between $31 and $34 for much of the last month, and witnessed a short-term price increase on 13 September. SOL dipped to $28.85 on Thirsday 13, down 7.8% on the previous 24 hours, according to CoinMarketCap, but recovered slightly to $31.46 but late Friday morning.

SOL to USD

Wider market influence

The wider crypto market also slid on 13 October with several of the biggest cryptocurrencies trading in the red. BTC, the largest cryptocurrency by trading volume, dipped below the $19,000 threshold amid the ongoing macroeconomic uncertainty. 

DOGE/USD

0.11 Price
+0.840% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

BCH/USD

370.75 Price
-1.680% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

BTC/USD

60,021.00 Price
+2.360% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

ETH/USD

3,193.91 Price
+0.900% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

Several analysts suspect volatilty on Wall Street and the FTSE 100 could be correlated to the wider crypto market downfall and the decline of several major Layer-1 protocols.

A week ago on 6 October, BTC was trading above $20,000 and even reached a high of $20,354. At the time of writing, BTC is currently trading at $18,780 and is down 1.83% in the last 24 hours.

ETH too fell below the $1,300 threshold with the second largest cryptocurrency down 3.82% in the last 24 hours. Avalanche is also down considerably, currently trading at around $15.08 after holding steady between the $16-17 mark.

ADA to USD

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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