Weekly Crypto Markets Digest #10 Sep 28 — Oct 04, 2020
- 700,000 ETH were moved to anonymous wallets.
- Twitter CEO believes that the future of the Internet is in Bitcoin.
- 88% of all bitcoins are already mined.
- The New York court has opened a criminal case against four founders of the BitMEX exchange.
Find out what important events in the crypto industry took place last week and how the rates of cryptocurrencies have changed in our latest crypto digest.
Cryptocurrencies are consolidating against the background of a lack of driving factors
Cryptocurrency exchange rates changed slightly last week, as the forces of bulls and bears were almost equal. In the near future, the forces of one side will run out and a stronger movement will begin, but it is not yet clear in which direction.
The price of Bitcoin (BTC) fell 0.8% to $10,682.73 after peaking on Monday at $10,917.06. The price hit a weekly low of $10,436.09 on Friday. Meanwhile, we are getting closer to the end of Bitcoin mining: 88% of coins or 18.5 millions BTC have already been mined. Only 1.5 million bitcoins remain to be mined. Recall that the estimated end date of mining is 2140.
Despite Friday’s collapse from a high of $368.26 to a low of $337.82, Ethereum (ETH) closed lower a negligible 1.8%. The CMI10 index rose just 1.46% from $6,610.48 to $6,708.64.
On Thursday, the prices of many cryptocurrencies plummeted after the US attorney’s office accused the founders of one of the largest crypto-derivatives exchanges, BitMEX, of violating rules against money laundering. The Manhattan court is going to sentence the perpetrators to five years in prison.
Large investors transferred more than 700,000 Ethereum tokens in a total of five transactions, according to the Whale Alert monitor.
Twitter CEO Jack Dorsey said that blockchain and bitcoin determine the future of the digital environment and economy. He also said that Bitcoin seeks to create a trust system in a non-trusting environment, i.e. the Internet. Dorsey announced back in 2019 that they were working with Blue Sky to create a decentralized standard for social networks.
Technical indicators:
Bitcoin dominance level: 57.9% (+0.2%)
Market capitalization: $341 billion (-1.8%)
Network complexity:
Bitcoin — 19.30T (-0.1%)
Ethereum — 3.25T (+0.7%)Number of transactions:
BTC — 268K (-3.5%)
ETH — 0.985M (-11.1%)Number of Google Trends queries: 42 (-7.7%)
The altcoin market is at a crossroads
Popular altcoins showed a mixed result: some of them fell in price while others gained at price. In fact, there is a simple explanation for this. Binance Coin (BNB) gained 9.7% to $28.73, reaching the 6th place by capitalization on CoinMarketCap, ahead of Polkadot (DOT) and ChainLink (Link), which fell by 2.6% and 13.2%, respectively. The growth of BNB is associated with the launch of new products for staking on the Binance crypto exchange, such as Dual Savings and Launchpad.
Against the background of Bitcoin’s stagnation, its forks unexpectedly have crashed — Bitcoin Cash (BCH) by 3.7% to $219.63, and Bitcoin SV (BSV) by 5.8% to $160.38. On Thursday, Cointelegraph reported a 761% increase in activity on the Bitcoin SV network ahead of the BSV conference.
Ripple (XRP) rose just 2.7% to $0.25. Cryptocurrencies continue to be actively introduced into the traditional economy. Japanese eSports company SBI Esports announced that it will pay salaries to its players in XRP tokens.
The hype around DeFi does not fade out
The capitalization of the crypto market DeFi sector continues to gain momentum. Last Wednesday, the number of blocked cryptocurrencies in DeFi protocols updated the ATH and reached $11.23 billion. Now the capitalization of DeFi is at $11.06 billions.
Uniswap (UNI) and Maker (MKR) continue to compete for the title of leading Protocol. For a short time, the Maker platform managed to shift Uniswap from the first position, but AMM regained it again, proving once again the status of the DeFi market leader. On Monday, September 28, the capitalization of Uniswap for the first time exceeded $2.00 billion, and for the week this figure increased by 12.6% to $2.33 billion.
Meanwhile, the crypto exchange BTSE.com launches the long-awaited DeFi index, which users can trade like other digital assets. And the founder of the Binance crypto exchange, Changpeng Zhao, said that he should change his business model to adapt to the rapidly growing DeFi market and maintain a Central role in the field of trading crypto assets.
DeFi projects capitalization:
1. Uniswap $2.33B (+12.6%)
2. Maker (MKR) $1.83B (-5.2%)
3. Aave (LEND) $1.32B (+0.0%)
4. Curve Finance (CRV) $1.22B (-3.2%)
5. WBTC $996.16M (+18.0%)
Total capitalization: $11.06B (+10.93%)
Uniswap Dominance: 21.28%
The leaders for the week have not changed, except that the capitalization of WBTC is close to $1 billion.
Gainers and Losers
↑ Nest Protocol (NEST) — 85.1%
↑ Celsius Network (CEL) — 45.4%
↑ Zilliqa (ZIL) — 34.0%
↑ Arweave (AR) — 24.2%
↑ OMG Network (OMG) — 20.9%
The Nest platform caused a stir among users by launching a new type of mining — mining quotes, which allows NEST holders to earn income in Ethereum (ETH) over 700% per annum. The project is not very popular: Nest Protocol has only 233 followers on Twitter, and the Protocol most likely has not yet passed a thorough audit.
DeFi tokens can hit the crypto community with their incredible growth (or fall) for no apparent reason, which even classic altcoins can envy. Arweave (AR) has risen by more than 24% in the absence of fundamental data. On October 1, in its blog, Coinbase announced support of the Ren (REN) and Balancer (BAL) tokens.
The Zilliqa (ZIL) rate soared amid news of the launch of its own Zilswap Protocol, which took place on Tuesday, September 29. A week earlier, in its official Twitter, the Zilliqa team announced the launch of non-custodial staking in its mainnet on October 14.
The price of the OMG Network token (OMG) again exceeded$ 3.00, updating its maximum since August.
↓ Yearn.Finance (YFI) — 40.8%
↓ Uniswap (UNI) — 27.3%
↓ UMA (UMA) — 29.2%
↓ Neo (NEO) — 16.1%
↓ Solana (SOL) — 11.6%
The price of UNI tokens is falling, despite the fact that the capitalization of Uniswap has updated the ATH and exceeded $2.00 billion for the first time. This is due to the fact that investors fix the profit in UNI tokens received during liquidity mining.
The hype around Yearn.Finance (YFI) and Sushiswap (SUSHI) have noticeably faded, and token prices continue to fall for the second week in a row, as most attention is focused on the Uniswap Protocol.
The Neo token (NEO) has fallen more than 16% despite the fact that Binance crypto exchange has launched staking with rewards in the new Flamingo DeFi tokens (FLM).
This concludes our weekly overview of the crypto market. See you next week!
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If you missed our Weekly Global Markets Digest #10:
https://medium.com/@excelsior_one/weekly-global-markets-digest-10-sep-28-oct-04-2020-fa5579e37f8d
