Metacade price has gone bonkers as investors cheer the latest developments in the network and the potential for gaming cryptocurrencies. MCADE token soared to a record high of $0.0342, which was much higher than its year-to-date low of $0.0091. This means that early investors have grown their returns by more than 280%. Its market cap has surged to more than $38 million.
Why did cryptocurrencies crash?
Metacade price has defied gravity in the past few days. For one, most cryptocurrencies like Bitcoin, Binance Coin, Cardano, and Solana have nosedived in the past few sessions. This collapse has brought the total market cap of all cryptocurrencies to more than $1.2 trillion.
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It is unclear why cryptocurrencies dropped sharply since Wednesday. A likely reason is that longs liquidations have jumped sharply in the past few days. Data by Coinglass shows that Bitcoin longs liquidations on Wednesday rose to more than $70 million, with most of these liquidations coming from Binance.
Liquidation happens when brokers and exchanges are forced to close leveraged positions in their ecosystem to prevent further losses.
Another likely reason why cryptocurrency prices dropped violently is that risky banks like Western Alliance reported strong results. Western Alliance, which was seen as one of the riskiest companies, said that deposits had started rising recently. It had regained about 40% of the deposits it lost during the SVB collapse.
The relatively safety of American banks has an implication for the market since cryptocurrencies appeared to do well during the collapse of SVB and Signature. At the time, most investors viewed Bitcoin – and gold – as safe havens.
Also, this safety gives the Federal Reserve leeway to continue hiking interest rates in the coming months. This explains why the US dollar index has jumped from last week’s low of $100 to $101.68. Treasury yields have also jumped in the past few days.
Why is Metacade soaring?
Metacade has gone in the opposite direction as most cryptocurrencies. This divergence is likely because investors believe that the gaming industry will continue growing in the coming years.
For starters, Metacade is a relatively new platform that recently launched its token after a successful token sale that saw developers raise over $16 million. We have written about this token sale here. The developers are now building the platform and seeking to grow its popularity by creating partnerships.
Metacade has jumped because of the rising trading volume as demand rises. Data CMC shows that the overall volume in the past 24 hours came in at over $733 million. Most of these tokens are being traded in Uniswap, which is the biggest DEX in the world.
The other main reason why the MCADE price is surging is that the token is gaining traction among centralized exchanges. In a statement, the developers said thar BitMart will be the next exchange to list it. This listing will happen on Thursday. Historically, cryptocurrencies tend to jump when there is a major exchange listing.
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