Cryptos Move In Sync With Tech Stocks

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Thursday's plunge in crypto markets that coincided with the rout in tech stocks triggered by the whopping 26 percent drop in Meta Platforms (FB), has been partly made good as cryptos rebounded amidst smart rallies by Snap Inc., (SNAP) up 49%, Pinterest, Inc. (PINS) up 15% and Amazon.com, Inc. (AMZN) up 13% in pre-market trading on Friday.

Aggregate crypto market capitalization has recovered to $1.76 trillion, gaining more than 5 percent in the past 24 hours.

Bitcoin has moved up to $38,079.21 after gaining 2.94 percent in the past 24-hours. Bitcoin dominates 40.8 percent of the crypto market. It advanced to 9th rank among all assets as per companiesmarketcap.com surging past Meta Platforms (FB) which plunged by $230 billion on Thursday following disappointing quarterly performance and future guidance.

Ethereum has surged to $2,846.71, aided by the 742 percent overnight rally. Ethereum's dominance of the crypto market has surged to 19.2 percent.

Meanwhile, Jump Crypto, the crypto arm of trading firm Jump Trading has come to the rescue of the Wormhole portal, replacing the tokens that were hacked in a major exploit on Wednesday.

Solana which was down 11.75 percent following the hack is now trading 11.59 percent higher at $106.30.

Cosmos (ATOM) is the best performer in the top-100 category, having gained close to 13 percent.

At current level of market capitalization, Bitcoin (BTC), Ethereum (ETH), BNB (BNB), Cardano (ADA), Solana (SOL), XRP (XRP), Terra (LUNA), Polkadot (DOT), Dogecoin (DOGE), Avalanche (AVAX), Polygon (MATIC), TerraUSD (UST), Cosmos (ATOM), Litecoin (LTC) and NEAR Protocol (NEAR) are the top-ranking crypto coins.

In the tokens category, Tether (USDT), USD Coin (USDC), Binance USD (BUSD), SHIBA INU (SHIB), Crypto.com coin (CRO), Wrapped Bitcoin (WBTC), Dai (DAI), Chainlink (LINK), Uniswap (UNI), FTX Token (FTT), Decentraland (MANA), Bitcoin BEP2 (BTCB), UNUS SED LEO (LEO), The SandBox (SAND) and Axie Infinity (AXS) rank in the order of market capitalization.

In the category-wise market capitalization dominance, Smart Contracts aggregate to 28.84 percent; DeFi is at 7.25 percent; Centralized Exchanges add up to 5.12 percent; Web 3 sums up to 3.09 percent; Research grosses 2.70 percent; NFTs account for 2.26 percent; Memes command 1.76 percent; Scaling enjoys 1.63 percent; Metaverse commands 1.46 percent; Decentralized Exchanges amount to 1.42 percent; while Gaming follows with 1.36 percent market capitalization.

Interestingly, market capitalization of Metaverse category rose 4.73 percent and Web3 category increased 4.97 percent amidst the 26 percent slump in Face Book's share price, post the record single day loss. It remains to be seen whether the drop signifies investors questioning the centralized Web2 model followed by tech giants like Meta. Meta which reported losses of around $10 billion in Reality Labs, its metaverse division faces tough competition from blockchain based rivals like Decentraland (MANA) that gained 20 percent in the past week and the Sandbox (SAND) which has also added 11 percent in the past seven days.

In a step forward in transparency and accountability, U.S.-based crypto Exchange Kraken has passed a semi-annual cryptographic proof-of-reserves audit by Armanino LLP to be conducted according to the attestation standards used by the American Institute of Certified Public Accountants. The Proof of Reserve Audit is designed to allow customers to verify cryptocurrency balances and to prove that their Bitcoin and Ethereum balances are safe and provable on the platform.

In regulatory news, Australia's consumer and competition (ACCC) watchdog is reportedly investigating Facebook's parent company Meta for a long running series of fraudulent cryptocurrency advertisements of the platform.

The growing pattern of correlation between cryptos and tech stocks has been evidenced once again with the market movements of the past few days. But will cryptos lose its identity and charm as a separate asset class and get merged in the larger tech space? Or will the new-tech narrative give cryptos a greater edge than ever before? The race just got tight now.

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