Weekly Crypto Markets Digest #11 Oct 05 — Oct 11, 2020
- The price of the main cryptocurrency breaks $11,000 again.
- KuCoin hacked for $281 million.
- The UK has banned cryptocurrency trading for small investors.
- The first crypto exchange was launched in the Netherlands.
- 75 crypto exchanges were closed in 2020.
In today’s crypto digest, we will tell you what happened last week on the crypto market and how the rates of cryptocurrencies have changed. Cryptocurrencies are rallying again and updating their two-week highs.
In the meantime, we are developing the most user-friendly digital asset trading platform and welcome everyone to become beta testers.
Bitcoin again broke the $11,000 mark
On Friday, Bitcoin (BTC) grew back above $11,000, hitting a one-month high of $11,421.50, before pulling back to $11,381.53 — up 6.7% from the previous week. Bitcoin reached a low on Thursday at $10,546.87. The reason for the growth of the cryptocurrency was the optimism of investors in the stock market and the weakening of the US dollar.
Ethereum (ETH) grew only 6.0% due to a stronger drop. The low was at $335.95, and the high was at $376.31. The second-largest cryptocurrency is currently trading around $373.69.
CMI10 crypto index has reached $7,132.39 (+6.6%).
It’s been a long time since the news published information about hacks of major crypto exchanges, and it finally happened: an anonymous hacker hacked the KuCoin cryptocurrency exchange and withdrew Bitcoin, Ethereum and other cryptocurrencies worth more than $280 million. CEO Johnny Lyu told the press that they fully compensate users for the loss.
The UK financial regulator (FCA) has banned retail investors from trading cryptocurrency derivatives. This decision was influenced by the recent BitMEX incident. The FCA noted that many crypto exchanges operate without licenses, which carries significant risks for investors.
The Dutch Central Bank — De Nederlandsche Bank (DNB) — has issued the first permission to launch a crypto exchange in the country. The new AMDAX crypto exchange can now officially store cryptocurrencies and conduct operations with them.
In 2020, 75 crypto exchanges were closed, according to the Cryptowisser service, which monitors and compares various crypto services. During the year, the number of closed sites increased by 56%. This is facilitated by tough competition. Industry giants such as Binance or OKEx practically monopolize the crypto market, leaving out the weaker crypto exchanges.
Technical indicators:
Bitcoin dominance level: 57.5% (-0.7%)
Market capitalization: $366 billion (+7.3%)
Network complexity:
Bitcoin — 19.24T (-0.3%)
Ethereum — 3.33T (+2.4%)Number of transactions:
BTC — 268K (+0.0%)
ETH — 1.036M (+5.1%)Number of Google Trends queries: 41 (-2.4%)
Altcoins have recovered from a disastrous fall a week earlier
The price of many altcoins rose following the Bitcoin exchange rate, but some of them failed to close last week higher. Ripple (XRP) gained 2.7% to $0.25, while Bitcoin Cash (BCH) gained 8.5% to $239.70. Binance Coin (BNB), which displaced ChainLink (LINK) and Polkadot (DOT) and ranked 6th on the CMC list, gained 1.9% to $29.52. LINK grew more — by 20.1% to $11.31, and DOT by 4.2%. Orion has partnered with ChainLink to add decentralized channels for its broker.
Tokens of DeFi projects fell in price despite the growing demand
DeFi’s market capitalization has fallen below $11 billion and is now at $10.86 billion. Moreover, defi lost 25% of its capitalization in just 1 day. The Uniswap dominance level rose to 23.97%. Meanwhile, DeFi tokens are suffering a strong drop, and many of them have fallen in price by more than 70% in a month. This stopped the fervor of investors and led to the fact that the Ethereum network was unloaded, as a result of which the fees fell to almost $2 per transaction.
Esther Pierce, a representative of the US securities and exchange Commission (SEC), said that the lack of regulation in the field of DeFi could affect corporate governance. At the same time, according to a recent Finder report, 64% of analysts believe that the DeFi market is still in its infancy and may grow strongly over the next 12 months.
DeFi projects capitalization:
1. Uniswap $2.60B (+11.6%)
2. Maker (MKR) $1.93B (+5.4%)
3. Aave (LEND) $1.13B (-14.4%)
4. WBTC $1.09B (+9.4%)
5. Curve Finance (CRV) $1.01B (-9.4%)
Total capitalization: $10.86B (-1.8%)
Uniswap Dominance: 23.97%
WBTC has beaten Curve Finance and his capitalization exceeded $1 billion for the first time.
Gainers and Losers
↑ UMA (UMA) — 30.4%
↑ Thorchain (RUNE) — 26.8%
↑ Monero (XMR) — 23.4%
↑ ChainLink (LINK) — 20.1%
↑ Hedera Hashgraph (HBAR) — 8.9%
It became known that the well-known crypto exchange Bitfinex has entered into a partnership with the Celsius Network (CEL). Thanks to this, users can now earn up to 6.2% per annum on their deposits in BTC and ETH.
The IRS has signed a $1.25 million contract with Chainalysis and Integra to declassify transactions on the Monero (XMR) network. This cryptocurrency allows users to make anonymous transactions, so the tax service considers Monero as a tool for committing financial crimes.
Two weeks ago, Australia’s first decentralized agricultural supply platform, Entrust, announced that it will run on the Hedera Hashgraph blockchain.
↓ Yearn.Finance (YFI) — 13.9%
↓ Elrond (ERD) — 11.2%
↓ Ocean Protocol (OCEAN) — 10.2%
↓ Uniswap (UNI) — 7.9%
↓ Aave [New] (AAVE) — 5.7%
The news that Elrond wants to abandon ERD and plans to switch to eGold has stirred up crypto investors. The token lost more than 11% in a week.
Many DeFi tokens have been terrifying their investors for the past two weeks. The UNI token lost more than 7% in one week, and more than 50% in two weeks. The big drop last week was because major players withdrew more than $2.8 million. However, against the backdrop of Bitcoin’s growth, the price bounced back on Friday and again exceeded $3.
The price of the YFI token fell to a one-month low of $12,300 after a frenzied rally. But then the price bounced again for the same reasons that many altcoins went up in price.
NEST fell despite the news that DeFi Labs Huobi, Dragonfly Capital and Coinbase Ventures are investing half a million dollars in the CoFiX crypto exchange, which uses Nest Protocol oracles to get quotes. Miners receive rewards in NEST tokens for paying fees and providing price data.
Due to the $150 million KuCoin hack, Ocean Protocol suspended the old contract and released a hard fork to prevent an anonymous hacker from trying to get rid of 21 million OCEAN tokens.
Our crypto digest has come to an end. See you next week! Subscribe and clap, have a successful trading and positive PNL.
If you missed our Weekly Global Markets Digest #11:
https://medium.com/@excelsior_one/weekly-global-markets-digest-11-oct-05-oct-11-2020-df35b276f131
