Celsius (CEL) was one of the hardest hit cryptocurrencies during the May stock market crash and continues to decline in June after a huge whale selloff.
Celsius has come under intense scrutiny from market commentators as one of the world’s leading crypto lending platforms after its native asset CEL plunged to new lows in May. . CEL closed the fifth month of 2022 with a market capitalization of around $199.8 million, according to Be[In]Cryptographic research.
This is a 59% decline from May’s opening day market value. On May 1, CEL recorded a trading volume of $3.65 million, which corresponded to a market capitalization of approximately $498 million.
Why is the sinking market capitalization?
A sharp decline in the overall cryptocurrency market capitalization in May, mainly the week of May 9 to May 13, can be seen as the cause of the Celsius market capitalization collapse.
Crypto’s correlation with the stock market plunging to new lows, geopolitical events and rising inflation were factors in the huge sell-off by individual whales and institutional investors.
In May, trading volume peaked at $14.84 million on May 12. On that day, the CEL opened at $1.03, reached an intraday low of $0.507, closed at $0.9907, and corresponded to a market capitalization of approximately $236.64 million.
This was a 52% drop in Celsius’ market value on opening day. Due to the price decline, CEL was unable to recover to retest the $1 mark for the remainder of the month.
CEL price reaction
CEL opened May 1 at $2.01, hit a monthly high of $2.18 on May 4, tested a monthly low of $0.507 on May 12, and closed the month at a price of $0.8366 .
Overall, this equates to a 58% decline between the opening and closing price of the CEL in May.
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