Crypto Market Turbulence: Layer 2 TVL Drops to $6.70B Amid Price Declines and Regulatory News
The cryptocurrency market is currently facing significant turbulence, with the total value locked (TVL) on Layer 2 networks dropping to $6.70 billion, down from $7.40 billion yesterday. This decline reflects a broader trend affecting major networks.
Top Layer 2 Networks
- Base: $2.82 billion, down 6.90% from yesterday.
- Arbitrum: $2.58 billion, down 10.31% from yesterday.
- Mantle: $382.41 million, down 10.72% from yesterday.
- Blast: $257.63 million, down 16.62% from yesterday.
- Linea: $229.29 million, down 13.28% from yesterday.
Current Prices
Bitcoin's price has fallen to $96,703, a decrease from $97,610 yesterday. Ethereum is also experiencing a downturn, currently priced at $2,627, down from $2,860. This drop in prices comes amid fears of a price crash driven by potential trade conflicts and the impact of Trump tariffs on the market.
Market Sentiment
Analysts are expressing concerns as Bitcoin has dipped below $93,000. This drop is attributed to fears surrounding US trade tariffs and significant liquidations in the market. Despite these challenges, some analysts see a potential for a short-term rebound and long-term strength, particularly due to a weakening US dollar.
Recent Developments
In a positive turn for the crypto space, Federal Reserve Chair Jerome Powell has opened the door for further adoption of Bitcoin and cryptocurrencies on Wall Street. This could signal a shift in institutional interest, despite the current volatility.
Regulatory News
Coinbase has received approval from the UK FCA as a registered crypto service provider, marking a significant step in its expansion. The UK is now Coinbase’s largest market outside the US, hinting at future growth towards the east.
Funding Landscape
There has been no reported fundraising activity today, as it is the weekend, with cumulative fundraising for the week standing at $0. This lack of funding may reflect the cautious sentiment prevailing in the market.
Challenges Ahead
THORChain is facing a significant hurdle as it plans to issue equity tokens to address a $200 million debt after pausing Bitcoin and Ether lending. This situation underscores the ongoing financial challenges in the crypto sector.
Technological Advancements
In other news, OpenAI has introduced a new AI agent named Deep Research within ChatGPT, aimed at enhancing web research capabilities. This development could have implications for various sectors, including crypto, as the demand for robust data analysis grows.
