Christmas market: Terra Classic jumps, Solana dives

Terra Classic briefly recovers $1bn market capitalisation on Boxing Day

Bitcoin and Ethereum trade flat over Christmas period - Photo:Shutterstock

The cryptocurrency market remained as volatile as ever over the Christmas period, with prominent coins experiencing double-digit slumps and some written-off projects rising from the ashes. 

Terra Classic jumps

Terra Classic enjoyed that largest gain in the past week, rising by 22.6% from $0.000130 to $0.000158. 

The cryptocurrency experienced one of the largest collapses of the year in the Spring, after its affiliated stablecoin UST lost its peg against the US dollar. Terra Classic, then known as Luna, fell from $117 to $0.0003 in just over a month, losing $40bn (£33bn) in market capitalisation. 

While South Korean authorities have launched a manhunt for many of the figures behind UST and Luna, the latter’s fortunes have been revived by the rebrand into Terra Classic. 

Enthusiasm about this ongoing rebrand likely drove the short-lived return above the $1bn market capitalisation benchmark that the cryptocurrency enjoyed on Boxing Day. Edward Kim, Associate Professor of Computer Science at Drexel University, recently joined the project and said that developers could reasonably execute his improvement plans within three months.  

Chain and Solana slide

Chain (XCN) suffered the largest decline of the past week, sinking by 35% from $0.02031 to $0.01315. The market capitalisation of the financial services-focused cloud blockchain infrastructure project stood at $282m on Wednesday, having briefly topped $7.6bn in June. 

Solana also suffered one of the most significant Christmas week declines, sinking by 17% from $12.05 to $9.98. The latest drop came after two of the blockchain’s most popular NFT projects, DeGods and y00ts, announced that they will move to Ethereum and Polygon, respectively.

Once touted as an ‘Ethereum Killer’, Solana has suffered due to technical glitches, backlogs and the wider decline in NFT and DeFi activity. Having traded at $190.53 on Christmas day 2021, the crypto stood at $11.33 a year later. 

The world’s two largest cryptocurrencies, Bitcoin and Ethereum, traded relatively flat during the Christmas week. Both have suffered substantial declines in the past 12 months nonetheless. Having traded at $36,365 and $4,060 on Christmas day 2021, Bitcoin and Ethereum respectively stood at $16,828 and $1,219 a year later. 

According to CoinMarketCap, the capitalisation of the total cryptocurrency market stood at $810bn on Christmas day 2022, having reached $2.3trn a year earlier.

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