Top altcoins like AAVE, LayerZero, and Aerodrome Finance (AERO) were among the top laggards on Sunday as the crypto crash intensified. AAVE token dropped by 20% in the last 24 hours, while altcoins like ZRO, Aerodrome Finance, Virtuals Protocol, and edgeX were among the top laggards.
The market capitalization of all cryptocurrencies dropped by 3% in the last 24 hours to over $2.5 trillion. Also, the volume in the crypto industry dropped by over 30% to $117 billion.
This crash continued as geopolitical tensions resumed on Saturday, as the Iranian Revolutionary Guard announced the closure of the Strait of Hormuz, leading to a surge in crude oil futures on Hyperliquid.
The U-turn is a major disappointment for President Donald Trump who touted the reopening on Friday. As a result, investors are worried that he may lash out by restarting the war, which would push energy prices higher.
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However, the closure could be a negotiation tactic as Iran seeks to get more concessions from the US. If the Strait is opened, chances are that energy prices will tumble and raise the possibility that the Federal Reserve will cut interest rates this year.
Tokens like Aave, Aerodrome Finance, and LayerZero are falling because of the ongoing RaveDAO price crash, which is in line with our recent prediction. At the time, we noted that the token’s rally was largely unexplainable and would lead to a drop.
RaveDAO has dropped amid concerns that it was going through market manipulation among insiders. These fears supercharged on Saturday as ZachXBT pointed to unusual transactions on popular exchanges like Binance and Gate.
These tokens are also plunging as investors book profits after the recent rally. AAVE price was up to $120 before the ongoing crash. It was up by over 35% from its lowest point this year. AERO price was up to $0.4693, while LayerZero jumped past $2.
Looking ahead, there is a likelihood that the crypto rally will resume this week, depending on how the Iran situation evolves. An extension to the ceasefire and the reopening of the Iran would lead to a rebound as investors embrace a risk-on sentiment.
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