Ethereum and Solana's losses are piling up as the Bitcoin selloff sends the crypto market lower

Bitcoin (BTC) and the broader crypto market are in sharp decline this week. But some of the biggest losers near the market top have been the stars of the show recently, including Ethereum (ETH), Solana (SOL), and Avalanche (AVAX).

In recent weeks, all three of these top 20 cryptocurrencies posted big gains as they attracted interest from institutional investors. Now each price has fallen at least 14% in the last seven days and has recorded significant losses on the day.

According to data from CoinGecko, Ethereum fell sharply this morning, falling 7% in the last 24 hours to a current price of around $2,200, extending its seven-day decline to 14%.

Solana has fallen by almost 16% in the last seven days and is currently at $82.50. It has recovered slightly since this morning but remains down about 5% for the day.

Meanwhile, AVAX, the 11th largest cryptocurrency, has fallen 19% this week to a current price of just under $29. Like Solana, it has erased some of its losses since this morning and is now down around 5% in the last 24 hours.

Just over a week ago, Ethereum hit just under $2,700, its highest price since April 2022. Excitement over Ethereum grew with the launch of spot Bitcoin ETFs as investors pondered the next wave of potential institutional adoption, most notably Larry, BlackRock CEO Fink addressed the prospect of an Ethereum spot ETF.

SOL has been on a high since the end of October. It was expected to take a hit during the trial of disgraced crypto mogul Sam Bankman-Fried, who was heavily invested in the asset through his now-collapsed crypto empire FTX.

But major companies like Visa and Shopify praised the project and said they would use its blockchain. A growing developer base also caused the price of SOL to skyrocket. In December 2023, it rose as high as $123, approaching a two-year high, after plummeting to a price of around $8 in December 2022.

AVAX also attracted interest when investment banking giant JP Morgan said in November that it had used the Avalanche blockchain to tokenize portfolios.

However, long-term holders have reason for optimism – despite recent price drops, both coins are performing well over a year-long period: SOL is up 239%, while AVAX is up 64%. Even Ethereum is up 35% in the last year.

The broader crypto market has taken a nosedive as it follows the price action of the largest digital asset by market cap, Bitcoin.

Ever since crypto fund Grayscale converted its flagship BTC fund into an exchange-traded fund (ETF) and began trading on the exchange, investors have been keen to redeem shares previously tied to the product.

This has put pressure on the price of the largest and oldest digital coin in recent days.

Edited by Andrew Hayward

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.

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