zkSync, LayerZero, Notcoin, and Wormhole Crash as Bitcoin Tumbles Below $64,000

Newly listed tokens also crashed heavily, costing investors millions of dollars. New token airdrops have tumbled.

Cryptocurrency prices crashed on Monday as the fear and greed index fell sharply and Bitcoin dropped below $64,000. Newly listed tokens also saw a significant decline, leading to investors losing millions of dollars.

New token airdrops have seen a sharp decline

zkSync fell by more than 10% on Monday and has dropped by over 40% in the past 7 days, giving it a market capitalization of over $614 million. LayerZero has also dropped by over 30% since its launch as its market valuation fell to over $700 million.

NOT token price from Notcoin has crashed by over 30% in the past seven days, and its market capitalization has dropped to about $1.46 billion. At its peak, this token had a valuation of over $3 billion.

Notcoin’s drop is primarily due to the current state of the cryptocurrency market, which has seen most cryptocurrencies crash. The crash is also due to the increased competition in the Telegram tap-to-earn industry, where platforms like Dotcoin, Hamster Kombat, and TapSwap have gained market share. Hamster's users have increased to over 150 million.

The Wormhole price crashed by over 40% in the past 30 days to $0.3380, bringing its market capitalization to over $608 million.

Other cryptocurrencies have also crashed in the past few days. Pepe has dropped by 22% in the past month, while Solana, Manta Network, Ethereum, and Starknet have crashed by double digits.

Why these tokens crashed

There are three main reasons why these tokens have all crashed. First, the primary reason is that Bitcoin has failed to move above the crucial resistance level at $72,000 and has crashed to below $64,000. Usually, Bitcoin sets the tone for the cryptocurrency market.

Bitcoin has crashed because it has not had any positive catalysts recently. The SEC approved spot Bitcoin ETFs in January and the halving event in April. Moreover, the Bitcoin ETF industry has seen outflows in the past three weeks.

Second, these tokens have crashed as most of their airdrop holders sell their tokens. It was reported last week that over 60% of the zkSync airdrop holders dumped the token soon after it was airdropped.

Third, there is a sense that traders are starting to get fearful. The crypto fear and greed index has dropped to 49 from a year-to-date high of over 90. If the sell-off continues, the index will likely crash into the fear zone. Usually, cryptocurrencies crash when there is a sense of fear and vice versa.

So, what next for cryptocurrencies like zkSync, Wormhole, LayerZero, and Notcoin? I suspect that these tokens will continue to be under a lot of pressure this week unless Bitcoin makes a comeback and manages to climb above the resistance point at $62,000.