Tuesday, August 16, 2022

The Crypto market recovers $133 billion in a week

The Takeaway:

For the past several weeks, the crypto market has been going through what some experts call the cryptocurrency winter. But in these dark times comes a ray of hope: after regaining more than $130 billion in the previous week, the cryptocurrency market is currently in the green.

Over the last day, the market capitalization of all cryptocurrencies climbed by more than 3.3 percent.

According to CoinMarketCap data (1), it increased by $133 billion over the course of the past week, rising from $832 billion on June 18 to $965 billion on June 25, a jump of 15.99 percent overall.

 

The fall of Bitcoin and Ethereum:

Reduced DeFi activity on Ethereum and a decline in Bitcoin trading activity are two possible causes of the bearish movement.

Data from DefiLlama shows that over the past 24 hours, the total value locked (TVL) across various protocols in Ethereum decreased from $88.67 billion to $68.02 billion.

Elsewhere, Bitcoin’s flow to fiat exchanges (where people can sell Bitcoin to cash) is up 5% over the past 24 hours, suggesting a sell-off of Bitcoin to cash.

Data from Chainalysis shows that the flow of Bitcoin to cryptocurrency exchanges has decreased by 37.4%, indicating a decline in investor interest for BTC. (2)

 

The rise of bitcoin and Ethereum:

In terms of inflow, the flagship cryptocurrency dominates the global cryptocurrency market. The digital asset with the largest market capitalization now is Bitcoin (BTC), which is trading at $21,392, up 2.29 % on the last day and 10.27 % in the previous week.

Notably, Bitcoin’s market cap increased from $338 billion to $408 billion in the previous week. Despite the fact that the perseverance displayed this week in keeping a position above such a big mark at $20,000, the cryptocurrency may face more difficulties this weekend.

With a market cap of $148 billion, Ethereum has risen above the critical $1,200 milestone to trade at $1,223, up 6.05 percent on the day and 21.36 percent in the past week.

At the time of publication, trade-ins with other popular cryptocurrencies like Cardano (ADA), Solana (SOL), and Shiba Inu (SHIB) were positive (3). Over time, the daily transaction volumes on Ethereum and Bitcoin are stable.

Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Hussain Sabunwala
Hussain Sabunwala
Hussain Sabunwala is a student at Symbiosis Institute of Technology. He is interested in how the internet works, Blockchain, and he is much more inclined to working in the field of Electronics. Writing helps him learn more about the different fields out there and how and why they work the way they do. He is always free to talk in length about many such topics and he is a bag of obscure facts collected and preserved in his many years in this planet.

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