Key Highlights
- Privacy coins like Zcash and Dash faced the steepest liquidations, both losing over a third of their market price.
- Major ecosystem staples, including Ethereum and Pudgy Penguins, experienced double-digit pullbacks amid the broader sell-off.
- The overall market capitalization has reached $2.37 trillion, reflecting a drop of 6.70%.
The cryptocurrency market recorded a major setback during the first week of February 2026, with the total market cap falling by 6.93% to $2.36 trillion as of February 5. Major digital assets like Zcash (ZEC), Story (IP), Dash, Ethereum, and Pudgy Penguins were the top five weekly losers during this period of high volatility.
The sell-off coincided with a sharp drop in market sentiment. The Fear and Greed Index fell to 11, indicating extreme fear among investors. The overall market correction picked up steam between January 30 and February 5.
The crash impacted digital assets in various sectors, from privacy protocols to decentralized finance. These declines suggest a high level of liquidation and active exit strategies by investors during the week.
Zcash (ZEC)
Leading the weekly decline is Zcash (ZEC), which saw its price fall by over 37% in the past week, trading around $223.06 at the time of writing. The total market capitalization stands at approximately $3.68 billion, following a period of aggressive selling.
Market analysts say support is so weak right now for ZEC that the price could drop to $163.
Story (IP)
Story (IP) followed with a weekly decline of 32.82%, trading at $1.29 at the time of writing. The total market capitalization stands at $453.96 million, as the token experiences volatility alongside the broader market correction.
The protocol experienced major capital outflows as investors moved away, though the project has received two new improvement proposals recently.
Dash (DASH)
Dash (DASH) recorded a weekly loss of 34.29%, falling to $37.87. With a total supply close to 12.57 million, the asset was unable to maintain its previous levels of support. The sharp decline indicates the extreme pressure experienced by major payment cryptocurrencies during the market-wide correction.
Ethereum (ETH)
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, also posted significant losses. ETH declined approximately 29.01% over the past week, trading near $2,016 at the time of writing. Its total market capitalization stands at approximately $243.3 billion, amid a sharp spike in network activity with daily volume increasing by 14.48% to $54.74B.
As a foundational asset for the DeFi space, Ethereum’s decline contributed to the overall drop in global market capitalization.
Pudgy Penguins (PENGU)
Rounding out the top five in losses is the Pudgy Penguins PUDGY token, which declined 27.65% over the week. At the time of writing, PENGU is trading at $0.0066 with the total market capitalization standing at $417.21 million, with a 9.19% decline. The circulating supply is approximately 62.86 billion PENGU tokens out of a total supply of roughly 88.88 billion IP.
This is a clear indication that even projects that have been community-driven and well-supported have not been spared from the liquidations that are taking place on a widespread scale in the market.
Before this crash, the market was already facing several regulatory uncertainties and economic changes. New projects such as Story and Pudgy Penguins have been included in the list of top losers, indicating that the current market volatility is not limited to any particular asset or project.
Future market outlook
The future of the market is uncertain as the Fear and Greed Index is at record lows. In the past, markets that have reached such extreme levels of fear have either signaled a potential market bottom or the start of a bear market.
Market participants are watching the $2.3 trillion total market cap level to see if it will hold as a support level. For the top weekly losers, the primary focus will be on whether they can hold their current market levels or if the high circulating supply will continue to affect market valuations without new buying interest.
Also Read: Why is Crypto Crashing Today? Inside the $841M Sell-Off & Burry’s ‘Death Spiral’ Warning
