Within a day, the crypto markets experienced a disastrous event that resulted in a cascade of liquidations. To be specific, more than $1.7 billion of contracts were liquidated, mostly long positions, as traders were left speechless due to sudden reversals and margin calls.
After the cascade, major assets, such as Bitcoin, Ethereum, and a large number of altcoins, fell. However, momentum is building for one project against the prevailing trend: Digitap ($TAP), the speed of the presale is breaking records now, with $200K already raised.
The Liquidation Shock: What Happened?
The liquidation incident is out of range in its scale. Crypto analysts see a $1.7B liquidation blow to the market in a day as long positions are mostly liquidated. Bitcoin was responsible for almost 17 % of the shortfalls, while Ethereum made up 30%. The rest of the drop came from altcoins.
This large-scale liquidation is commonly rooted in a heavily overleveraged market. When prices tumble under pressure, the positions that were extremely leveraged cannot maintain their margins, and they are forcibly closed. That accelerating downward movement is what causes the chain reaction or cascading effects.
As for Bitcoin, the decline sent the prices plunging towards $112,700–$113,000. The general altcoin index also dropped heavily. The momentum of the altcoin season disappeared, and numerous speculative coins experienced significant drawdowns.
Ripple Effects Across Altcoins
Bitcoin and Ethereum were not the only ones that experienced a decrease in value. Those altcoins whose prices had risen significantly in the past few weeks were the most prone to being affected. This is because part of their traction had been maintained by the use of leverage and the flow of speculative adoption.
Any project out there whose fundamentals are weak and the liquidity is low will experience the biggest drop in their token price. The Altcoin season index, for example, was at first at a very high level but then gradually declined to a low point because the momentum was exhausted. In most cases, support bands had been touched, resulting in selling at panic speed in less liquid markets.
At the same time, some projects with especially real-life use cases and continuous inflows of capital managed to stay afloat. It is at this point that Digitap starts to set itself apart.
Digitap Marches On: $200K Presale, Real Utility
Digitap has not only been able to maintain its presale throughout the market turmoil, but it has also seen it gaining momentum. The presale has so far collected over $200,000 in total. Currently, the price of $TAP is $0.0125, and the next stage price is expected to go up to $0.0159. This is something that draws a lot of attention.
The majority of the projects cannot raise money during a bearish or corrective period. Nevertheless, Digitap is successfully attracting investors by its utility narrative and product roadmap. If you are wondering why some are so bullish about Digitap when the market is in such a dire condition, here are some of the reasons.
- Utility-driven vision: Digitap is not just another token; it has plans to provide real-world utility and services that include card usage backed by Visa, virtual and physical cards, cross-border payments, as well as no-KYC onboarding.
- Tokenomics that reward holding: The project’s setup integrates deflationary mechanisms, token burning events, and rewards for early participants. This collectively allows the reduction of selling pressure caused by the tokens in circulation.
- Early traction matters more now: When markets tumble, projects that have strong foundations such as product, user interest, and capital, are the ones that better survive the crisis. Digitap’s presale success indicates that the project is not merely hype-driven.
In all aspects, Digitap is setting itself apart to be the best cryptocurrency to buy this year.
Conclusion: Turmoil Tests Strength and Digitap Gains Credibility
The $1.7B event that led to the liquidation of a large part of the leveraged crypto space revealed how vulnerable most of the leveraged crypto space was. Long-only strategies, the overextension of leverage, and the collapse of the speculative momentum were among the things that went down with this event. The drop was so quick and so large that even altcoins that had been aggressively rallied were now in a downtrend.
Nevertheless, Digitap not only manages to survive the purge but also to increase its momentum. More than $200,000 of presale capital, which is backed by solid utility promises and a publicly available roadmap, gives the project more credibility.
While the markets undergo a reset, many speculative projects will struggle to recover. However, the well-thought-out design of Digitap, its commitment to accessible payments, and realistic ambitions may help the project to get stronger in the future. In a market where the majority of companies fail, Digitap has the capacity to operate effectively under stressful situations.
Digitap is Live NOW. Learn more about their project here:
Presale https://presale.digitap.app
Social: https://linktr.ee/digitap.app
