This Week in Crypto: The Market Shows Signs of Renewal

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While most tokens have gained in value over the past seven sessions, investor sentiment still lingers around “extreme fear” territory, indicating that the ongoing bearish phase is far from over.

Bitcoin stabilizes near $30,000

After plunging to $25,000 in the past two weeks, Bitcoin (BTC) is stabilizing near the crucial $30,000 support level. Over the past seven sessions, the crypto leader by market capitalization has posted gains of around 5.2%.

Earlier this week, BTC surged above $31,000 for a brief period before falling below $29,000 within hours, mostly due to a substantial correction in US equity markets.

US markets quickly reversed their gains this week, with the S&P 500 and Nasdaq 100 falling in the first hour. Meanwhile, the Luna Foundation Guard (LFG) sold 99.6% of its position (80,081 BTC), putting more pressure on the price of BTC.

The latest on-chain data indicates that BTC’s whales are pouring out – a sign that BTC’s bearish run may persist. According to BTC: Exchange Whale Ratio (72h MA), nearly 90% of deposits at exchanges come from whales, which may lead to greater downside risk. The Bitcoin network has now increased its mining difficulty to 31.251 trillion – surpassing the 30 trillion mark for the first time ever.

WAVES and CELO dive below comfort levels

CELO, the native token of the Celo blockchain ecosystem, has fallen nearly 17% this week, making investors a little uneasy. Although CELO avoided a maximum decline during the recent crash, the selling contributed to its continued bearish performance.

Last week’s top gainer, TRON, also slipped before recovering over the past seven sessions. The Tron ecosystem recently released the very first “decentralized” USDD stablecoin.

At the same time, the TRON DAO acquired millions of dollars worth of BTC and TRX to back its USDD algorithmic stablecoin, increasing the overall market capitalization of the TRX token. However, the extreme volatility, fear and massive selling had their effects on the value of TRON.

Altcoins sit on the greener side

The majority of altcoins have seen promising growth over the past seven sessions, despite the uncertainty clouding the broader market. Among some of the top altcoins by market cap, Binance Coin (BNB), Cardano (ADA), Solana (SOL), and Polkadot (DOT) were able to pare their previous losses, all posting double-digit gains.

One of the top gainers this week was Decentraland (MANA), with its value up over 43%. Demand for “Linked Wearables” is sparking bullish momentum, and Decentraland, the leader in this space, is seeing the most traction.

The emerging concept of Linked Wearables is getting a lot of attention from investors and Metaverse users. While there has been a steady decline in Decentraland’s LAND sales, it is seeing extraordinary growth in its NFTs.

As the altcoin market recovers rapidly, the Socios fan token has risen over 40%. This upward rally follows a re-listing on BitPanda, a mainnet launch, and the unveiling of a “competitive burning mechanism” announcement.

That said, the main reason for the increase appears to be the myriad new developments on the Chilliz protocol – the platform that powers Socios’ blockchain-based sports entertainment platform. As part of Chiliz’s broader mainnet launch, Chiliz has announced the Jalapeno launchthe second phase of its Scoville Testnet, earlier this week.

Terra in legal trouble as mainstream adoption continues rapidly

The ongoing Terra blockchain saga is far from over. While CEO Do Kwon shared a detailed plan to relaunch the struggling chain, which saw massive outflows following the unpecking of algorithmic stablecoin TerraUSD, South Korean politician Yoon Chang-Hyeon of the People Power Party demanded a parliamentary hearing on TerraUSD (UST).

Amid this shakeup, Terra’s in-house legal team, including Lawrence Florio (Chief Corporate Counsel), Marc Goldich (General Counsel), and Noah Axler (Regulatory Counsel), all ceased working for Terra.

As for blockchain adoption, Getty Images and Candy Digital have partnered to launch an exclusive NFT Marketplace with Getty Images NFTs. Meanwhile, Japanese investment bank Nomura has announced plans to launch a crypto subsidiary, which will be operated outside Japan by a team of 100 people by the end of 2023.

Finally, prominent music streaming platform Spotify is currently testing the option for musicians to add NFT galleries to their profiles in a bid to improve the experience for artists and fans.

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