Amid the market volatility, Bitcoin briefly dropped below $33,000 last Monday, reaching its lowest level since July.
While it has recovered to around $37,000, it remains 46% below its all-time high of 69,044.77 set in November.
Cryptocurrencies across the board have lost over $1 trillion since Bitcoin hit its record high, as top coins, like Ether and Solana, have also posted sharp drops in value. Ethereum's value has almost halved since peaking in November, while Solana's has fallen 65%.
Crypto investors fear the market would slide into a crypto winter as it did in 2018, when Bitcoin plunged 80% after hitting its all-time highs.
A bear market in crypto was something I rejected in my previous articles. But now that I think of it, I’d say it is possible, but the crucial support line of 31-30K has not been broken yet. I would consider this to be a bear market scenario if the level is broken and held for at least a week.
In the meantime, I believe we're near the end of a downward correction, and we'll soon see the next growth momentum, taking us to a new all-time high.
In analyzing Bitcoin's recent tumble, it's notable that it coincides with a decline in global stock markets. I mentioned previously that stocks and crypto started moving in parallel.
According to the chart below, Bitcoin's price action resembles that of the benchmark US stock index very closely.
Furthermore, according to data from Skew Analytics, Bitcoin-S&P realized monthly correlation hit 73.1% on January 26, 2022, its highest level since July 2020.
The S&P 500 index has declined 7% since the start of the year. Fed monetary policy tightening and interest rate hikes in response to surging inflation may drain liquidity from the market. That is why stock prices are falling.
Thus, risk-off sentiment is sparked in the markets. A whole lot of signs point to the fact that crypto is no longer perceived as a hedge, but rather as a high-risk investment. This, in my opinion, and that of many other analysts, is the most significant reason for the decline in crypto.
Now let’s snap out of all this gloom and doom. Below are my top 4 picks for gaming coins in the Solana ecosystem.
The Top 4 Solana Gaming Coins
Solana's lightning-fast transaction speeds, low costs, and rapidly expanding ecosystem have attracted considerable developer interest from the gaming industry, which many believe is crucial to the mainstream adoption of cryptocurrency.
Star Atlas (ATLAS)
Star Atlas is one of the most buzzed-about games powered by the Solana blockchain. A virtual gaming environment built on Unreal Engine 5 went live in September 2021, offering a cinematic, real-time environment.
The game takes place in a futuristic science fiction setting in 2620, where players influence interstellar conflicts and receive rewards for their efforts.
In the Galactic Marketplace, players can purchase and sell NFT assets in-game using ATLAS, the game's native token.
This project is certainly ambitious. They are backed by giants like Serum and Animoca Brands who recently purchased $3 million of NFT spaceships from Star Atlas.
At the time of writing this article, ATLAS traded at $0.05261, up 8.5% for the past seven days. While Star Atlas is 80% off its ATH reached in September, there is still potential for growth. Its current market cap is $113.5 million.
Aurory, a Japanese role-playing game, debuted on Solana in October 2021, using the same play-to-earn style mechanics that made Axie Infinity so popular. Through playing the game, players can earn tokens and NFTs, which they can then use to buy items in the marketplace. Aurory also seeks to attract DeFi enthusiasts with its staking and NFT collateralization services.
As of last check, AURY traded at $8.79, down 2.2% for the last 24 hours and with its market cap standing at $82,899,310. It is currently 62% away from its record high set in November.
Crypto Cavemen (CAVE)
Cave powers the new NFT game by The Cavemen Club based on the Solana blockchain. A strong team of developers is creating a really interesting P2E game to play, not just an investment vehicle, so The Crypto Cavemen Club is expected to be a cut above the rest.
Players will be rewarded for playing the game with CAVE tokens, as well as be able to purchase real estate and ingame items using the tokens.
Currently, CAVE is trading at $0.724142, a gain of 23.3% over the past 7 days, and its market cap is $1,647,824.
RaceFi is a first-of-its-kind AI/ML (Artificial Intelligence/Machine Learning) car racing metaverse game running on Solana, scheduled to be released in Q1/2 of this year.
RaceFi's metaverse allows players to earn while playing different types of games or purchasing in-game real estate to make profit. Its stated mission is to provide players with the most engaging gaming experience and profitable monetization options, while also developing the ecosystem and encouraging the widespread adoption of blockchain technology.
RACEFI is currently trading at $0.171513, up 31.2% for the past 24 hours.
The information provided in this article is for educational purposes only. Cryptocurrency investment involves a high degree of risk, so it should only be undertaken by people who are able to sustain the loss of their entire investment.
This article has been originally published on Cointelegraph.