Crypto market crash: the latest news on Solana, Cardano, Ripple and Terra (LUNA)

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What happened

So … those who haven’t verified their crypto wallets yet might want to.

The crypto markets are currently in turmoil. Most of the major cryptocurrencies are bleeding, driven by oversized moves at the top of the value chain.

This market bustle started late Friday night and continued early Saturday morning. However, by the end of the day on Saturday much of the market chaos subsided, to some extent.

At 11:45 p.m. ET, Cardano (CRYPTO: ADA) and Ripple (CRYPTO: XRP) were two of the biggest losers among large-cap cryptocurrencies. Cardano is down 8.4%, while Ripple has seen 7.4% declines in the past 24 hours.

However, Solana (CRYPTO: SOL), one of the top 5 cryptocurrencies by market cap, has recouped most of its gains from the previous crypto crash, down just 1.8% since the chaos started. And Terra (CRYPTO: LUNA) was the big winner, rising 20.8% in the past 24 hours.

Image source: Getty Images.

So what

Starting with the good news, Terra has recently been a big winner among mega-cap cryptocurrencies. This network provides a stable and crucial coin infrastructure and increasingly appears to be viewed as a more stable (no kidding) hedge against the volatility that is wreaking havoc in the crypto markets.

Solana’s positioning as a smart contract / decentralized finance (DeFi) network capable of competing with Ethereum has prompted many investors to consider this leading token. As a result, it looks like the market is taking a buy down approach with this prominent token.

Ripple and Cardano are two cryptocurrencies with their own set of token-specific headwinds. Various regulatory and delisting issues have plagued both cryptocurrencies, causing headwinds that appear to hamper the recovery of these tokens today.

Now what

When looking at the price action of these four cryptocurrencies, investors can take two things away.

First, the crypto market is a rapidly changing space with very unique blockchains, each with individual catalysts and headwinds. Investors who are considering choosing tokens should consider a variety of factors before getting started. It is a risky business to choose individual tokens.

Second, market-specific forces can and will continue to provide momentum for the industry as a whole. However, there is still a margin of divergence from market-specific catalysts. In this case, Terra Luna’s bullish momentum eclipsed this weekend’s turbulence. And it looks like Solana is taking a break on the rise.

Maybe Ripple and Cardano will catch up with their peers. However, it seems investors are more selective with which tokens they choose to buy the downside with today.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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