VeChain, this week’s standout cryptocurrency, on Wednesday saw a reversal of fortune when its price tumbled 11.06 per cent in a 24-hour period and its market cap fell to $764.218 million, according to CoinMarketCap.
The price for the 19th-ranked cryptocurrency dropped from $0.01615 on Aug. 21, a monthly high, to $0.012996 on Aug. 22. Prior to its recent fall, the price had been recovering from $0.00667 on Aug. 1.
VeChain’s 24-hour loss was the largest for the top 100 cryptos, except for 90th-ranked ReddCoin, which lost 11.18 per cent.
A Punishing 24 Hours
Most of the top 100 cryptocurrencies lost ground in the last 24 hours. The largest crypto not to lose ground against the dollar was 34th-ranked Nano, with a $248.453 million market cap, which posted a 0.43 per cent gain.
The SEC’s denial Wednesday of two bitcoin ETF applications might have helped push VeChain closer to the crypto mainstream. The SEC denied ETF proposals from Direxion and ProShares. While analysts did not expect a bitcoin ETF before 2019, hopes were high that such an event would revive the market.
The overall market has seen a trading volume decline of 25 per cent in the spot market in the past week and a 69 per cent fall in bitcoin futures.
A Reversal Of Fortune
On Tuesday, the price of the China-based, IoT-focused crypto jumped around 10 percent in the face of a struggling market, doubling for the week.
Investors were believed to have been motivated by Palm Beach Group to buy VeChain with hopes of seeing the price rise to $0.27. Palm Beach Group, however, had “buy” ratings on numerous large cap cryptos.
VeChain’s recent success was driven by some key partnerships, such as PriceWaterhouseCoopers, which in May announced an investment in the cryptocurrency for its unique IoT technology. The global accounting firm expressed an interest in using VeChain’s IoT network for its customers.
VeChain had also secured a contract with the Chinese government to create a solution to trace vaccines.
Investors have overall failed to demonstrate confidence in high-risk trades.