As prices of cryptocurrencies drop, eToro suggests that massive selloffs and fall in activity for responsible for the fall. According to analysts, a lot of investors wanted to book their profits in the crypto markets.
A big year for cryptocurrencies
This year has been eventful for cryptocurrencies. Social trading firm eToro’s market analyst Simon Peters said that traders should take the long view in the market. He said that August was energetic but September was subdued. He added,
“it is worth noting that every coin has performed positively in 2020, with software platforms such as Ethereum and Tron seeing respective gains of 160% and 84%.”
He noted that crypto trading activity went down in September but it still has an upside compared to 2019.
Monthly trading figure reports
The monthly trading figure reports from eToro suggest that despite the decline in September, Bitcoin, Ethereum, and XRP are still performing well. The three were the top three most popular cryptocurrencies on eToro for the second month in a row. They were followed by Binance Coin, NEO, Tron, ADA, Tezos, MIOTA and LTC. Binance Coin moved up three spots from the 7th to the 3rd.
The trading volume was down and only NEO was able to mark some increase in trading. The smart contract platform traded 2% more than August. This helped push the crypto asset to the fifth place. Tezos experienced harsher times and fell four places after experiencing a good summer. This is the first time that Tezos has fallen out of the top 5 list in the monthly cryptoasset report from eToro.
Peters explained that XRP and Tezos were worst affected because of the trading volume slump. He said that TRX and ADA are expected to witness some upticks in activity going forward. They may be able to take advantage of the staking rewards which are available on eToro now.
He also said that the selloff could be prompted because investors looking to cash out before the end of the third quarter. Cryptos made some exceptional gains during the summer and investors were motivated to book some profits.