The Cronos price crashed to a record low as demand for cryptocurrencies evaporated. The CRO token slumped to a low of $0.1058, which was about 88% below the highest level on record. This decline brought its total market cap to about $2.9 billion. At its peak, Cronos was valued at over $10 billion.
Cronos is a blockchain project that was previously known as Crypto.com Coin. Its mainnet was launched in November 2021 and experienced strong growth as the number of developers rose.
Some of the most notable projects built using Cronos chain are projects like VVS Finance, Tectonic, MM Finance, and Single Finance among others.
Demand for these projects has evaporated in the past few months. This situation accelerated after the collapse of Terra and its ecosystem.
According to DeFi Llama, the total value locked (TVL) in Cronos has crashed from over $4 billion to the current $1 billion. Most of this TVL is in VVS Finance and Tectonic.
Investors have dumped DeFi platform simply because the collapse of popular platforms like Anchor Protocol meant that others too could crash.
Cronos is also used in other sectors in the blockchain industry like metaverse and non-fungible tokens (NFT) have weakened. In the past few months, the total volume of NFTs and gaming has declined. For example, there are concerns about whether projects like Axie Infinity will survive.
Cronos price has also crashed as investors wait for the upcoming interest rate decision by the Federal Reserve.
Analysts expect that the Fed will continue hiking interest rates. Some believe that the hike will be 0.75% while others expect it to hike by 0.50%. Historically, risky assets like Cronos tend to underperform in a period of high rates.
The daily chart shows that the CRO price has been in a strong bearish trend and is now hovering near its all-time low. The coin remains below all moving averages and the important support level at $0.1500. At the same time, the RSI and other oscillators have moved below the oversold level.
Therefore, there is a likelihood that the Cronos price will continue falling as bears attempt to move below $0.10.