Weekly Crypto Markets Digest #12 Oct 12 — Oct 18, 2020
- OKEx crypto exchange has suspended the withdrawal of cryptocurrencies.
- Spain has approved a bill requiring crypto holders to disclose data about their income.
- Ethereum miners earned more than 450K ETH on network fees.
- In Russia, the largest P2P exchange — LocalBitcoins — was blocked.
Today, in the weekly digest of cryptocurrencies, we will tell you about the latest developments in the crypto market and how the rates of digital assets have changed during this time.
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Bitcoin and Ethereum have broken through the old resistance zone and are consolidating
Bitcoin (BTC) has returned to its previous levels above $11,000 and remains there for the second week in a row. Last week, the exchange rate of the main cryptocurrency rose by 0.8% to $11,469.88. Bitcoin reached its maximum on Tuesday, October 13, at $11,680.17, and the minimum was on Monday at $11,251.62.
Ethereum (ETH) gained 0.2%, rising to $375.48 after bouncing off a low of $365.05. Last week’s high was reached by ETH on Tuesday at $392.26. The CMI10 crypto index gained 4.60% to $7111.22.
Bitcoin’s dominance level: 58.4% (+1.5%)
Market capitalization: $363 billion (-0.8%)
Network complexity:
Bitcoin — 20.35T (+5.7%)
Ethereum — 3.25T (-2.4%)Number of transactions:
BTC — 231K (-13.8%)
ETH — 995M (-4.0%)Number of Google Trends queries: 44 (+7.3%)
The Spanish government has approved a bill requiring cryptocurrency owners to disclose information about the presence of crypto assets and the profits received from them. Finance Minister Maria Jesus Montero said at a news conference that the bill is part of a larger anti-tax fraud law.
Miners earned more than 450,000 ETH during the DeFi boom, which caused an unprecedented increase in fees on the Ethereum network. This amounts to more than $160 million, taking into account the current exchange rate of the cryptocurrency. Network fees have even surpassed Bitcoin network fees in size.
Famous Hong Kong crypto exchange Gate.io released a hardware wallet with fingerprint recognition. The new device can store more than 10,000 different digital assets and supports multi-signatures of up to 40 individuals for the most secure cryptocurrency storage.
LocalBitcoins P2P exchange is blocked in Russia. The Russian government is still uncertain about cryptocurrencies. Earlier, the Federal service for supervision of IT communications Roskomnadzor blacklisted the site of the largest crypto exchange — Binance.
On October 15, the long-awaited launch of the Filecoin main network took place. The event caused such a resonance that the FIL token quickly soared in price almost 4 times — from $32.50 to $114.32 and rose to 28th place in terms of capitalization on the crypto market. Now the price has adjusted and is near $30.93. The launch of the mainnet was supported by major trading platforms, including Binance, Kraken, Huobi and Gemini.
Altcoins show a mixed picture
Despite the growth of the main cryptocurrencies, some altcoins showed negative dynamics. So, Ripple (XRP) fell by 5.4% to $0.24, Polkadot (DOT) fell by 5.1% to $4.03, and Crypto.com Coin (CRO) lost 30.0% to $0.10. The focus is again on the speculative DeFi sector, as well as the upcoming Eth 2.0 updates.
Binance Coin (BNB) and ChainLink (LINK) rose the most among major altcoins — by 5.5% to $30.08 and 11.6% to $10.81, respectively. The Binance exchange token has grown on the back of a new lottery, in which BNB holders get tickets and a chance to win new Injective Protocol (INJ) tokens. Bitcoin Cash (BCH) gained 3.1% to $246.86, while Cardano (ADA) rose 0.2% to $0.10.
DeFi is waiting for the second wave
The capitalization of the DeFi market has again exceeded $11 billion, and the number of blocked ETH coins on the Uniswap platform continues to hold above $2.5 billion. Uniswap is the only platform with a capitalization exceeding $2 billion.
The WBTC platform has become one of the top three, having overtaken the number of Blocked Ethereum Aave (LEND) tokens last week. A few fresh news from the crypto world may signal a new increase in interest in the DeFi market.
First, Coindesk reports that DeFi fever has reached China. New Chinese DeFi projects have raised millions of dollars in just a few hours. The capitalization of one of them — DODO — has already exceeded $100 million dollars according to Defi Pulse. However, then it was corrected to $94 million.
Secondly, the recent incident with the OKEx crypto exchange, where users could not withdraw funds because one of the owners of private keys temporarily “split off” from the team, participating in the investigation. This situation once again reminds the US of the risks of CEX and makes the US pay attention to the decentralized market.
DeFi projects capitalization:
1. Uniswap $2.72B (+4.6%)
2. Maker (MKR) $1.97B (+2.1%)
3. WBTC $1.20B (+10.1%)
4. Aave (LEND) $1.05B (-7.1%)
5. Curve Finance (CRV) $0.90B (-12.2%)
Total capitalization $11.19B (-1.8%)
Uniswap Dominance: 24.28%
Gainers and Losers
↑ Waves (WAVES) — 21.0%
↑ Monero (XMR) — 9.9%
↑ Binance (BNB) — 5.5%
↑ Bitcoin Cash (BCH) — 3.1%
↑ Thorchain (RUNE) — 2.0%
The capitalization of the Monero cryptocurrency (XMR) has reached a two-year high. Recall that a week earlier, some countries called for the development of backdoors for cryptographic software. This has increased investor interest in anonymous cryptocurrencies such as XMR and ZEC.
Binance Coin (BNB) is the largest exchange token, which is on the 6th place by capitalization in the CMC list. The Binance crypto exchange regularly launches promotions to encourage investors to buy and hold BNB. Now Binance Coin holders receive tickets for the INJ token draw in proportion to the number of coins stored.
Thorchain (RUNE) became one of the tokens whose potential was considered by SIMETRI — a project from the creators of the Crypto Briefing information resource. Bitcoin Cash (BCH) is growing against the background of the upcoming BCHN fork, which will receive 82% of the current computing power to support it.
↓ Arweave (AR) — 37.5%
↓ Crypto.com Coin (CRO) — 30.0%
↓ OKB (OKB) — 25.2%
↓ Yearn.Finance (YFI) — 12.5%
↓ Balancer (BAL) — 12.0%
Many tokens, especially from the DeFi sector, have fallen sharply in price and continue to fall in price after the investor hype a month earlier. This is why last week, large, time-tested altcoins are leading the investor race. The leaders of the fall among DeFi tokens were YFI and BAL.
Andre Cronje, Yearn.Finance founder, announced a new project based on Ethereum called Cronje. However, Cronje warned that the smart contract is still being tested and investment will be risky. But despite this, more than $6 million has already been invested in the project in two days. At the same time, analysts believe that Yearn.Finance is coming to an end.
The rate of the OKB token collapses after the OKEx cryptocurrency exchange suddenly suspended the withdrawal of funds. Representatives of the exchange told the press that one of the owners of private keys is cooperating in the current investigation with the Public Security Bureau. OKEx claims that users’ funds are safe.
CRO tokens fell by almost 30% after holders were outraged by a 70% reduction in interest rates as the number of Crypto.com users increased over 5 million.
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 #12:
https://medium.com/@excelsior_one/weekly-global-markets-digest-13-oct-12-oct-18-2020-ae1180795adc
