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The prices of Olympus fell by 35 per cent on January 17 because a whale sold 82,586 OHM (Olympus Finance) worth USD 13.3 million, resulting in a series of liquidations.
The decrease in Olympus' price is not the first steep drop in the new year, as it had just fallen to 32 per cent on Tuesday, which caused the decentralized money market to reach the level last seen in May 2021. In the early hours of Tuesday, the price of Olympus slipped from $264 to 161. A steep drop in the price of Olympus is attributed to crypto traders' negative sentiments in the market.
When you dig deeper into the performance of this virtual currency, you will discover that its prices have fallen since it reached a record high of US $ 1,415 in April 2021. Prices have lost around 90% since April 2021.
To understand why its prices are falling so heavily, we tried to find experts' opinions. In our analysis, experts are not unanimous in their views. Some have to say it is happening because the owners of Olympus Finance are trying to get it legalized.
Launched last year in March 2021 and managed by a decentralized autonomous organization, Olympus Finance trusts smart contracts instead of intermediaries to provide sound financial services to its users. Unlike most other stablecoins, Olympus finance is not backed by USD but cryptocurrency. A stablecoin backed by the dollar is not immune to inflation, so these coins lose their purchasing power with time. On the other hand, Olympus is resistant to inflation and does not lose its purchasing power.
Since the downtrend in the prices of Olympus Finance has been continued, and the prices have fallen up to 90 percent, you need to be very cautious if you are going to invest in it. However, if it is true that the prices are falling because its owners are trying to make it legal, it is not a big concern because investing in a legitimate currency is always a good decision.