The past seven days of losers and winners might suggest that cryptocurrency markets are net-positive. However, the total market capitalization fell 6.7% to $2.72 Trillion as Bitcoin’s (BTC), price dropped 8.3% to $58,425.
Top 80 coins in the sector: Winners and losers Source: Nomics
This week’s top gainers seem to have no connection. The metaverse and the gaming sector are on a bull run, as Facebook changed its name to Meta on October 28th, signaling its renewed focus on this segment. The Nov. 19 raise by Gemini, a crypto exchange that aims to create a decentralized metaverse, is another bullish sign supporting the current surge of metaverse-related tokens.
The pumping of top performers was done for specific reasons
Gala (GALA), a cryptocurrency, pumped shortly after the Coinbase and Huobi listings on Nov. 16. This utility token powers a decentralized gaming environment that allows players to have input in funding and development phases.
Crypto.com (CRO), also had news on Nov. 18, to support the rally. The marketing department of the Singapore-based exchange spent $700 million on the rights to name the stadium where the NBA’s Los Angeles Lakers plays.
Elrond (EGLD), announced a $1.29 Billion incentive program on Nov. 19. This incentive program was designed to attract liquidity and users to its decentralized financial ecosystem. This project makes it possible to perform up to 15,000 transactions per minute (TPS) using sharding technology.
Tokens of decentralized exchanges are a hit
Two decentralized exchange utility tokens were among the worst performers. Caroline Crenshaw, the United States Securities and Exchange Commission commissioner, was the only negative news. The study found that the sector does not have market protections, raising concerns about market manipulation and pseudonymity.
Quant (QNT), continues to fall after a 122% 7 day rally on Sept. 3. This was fueled by an upgrade protocol that allowed ERC-20 token interoperability.
Vechain Thor (VET), which had a 38% 7 day pump on Nov. 2, was retraced ahead of the proof-of-authority mechanism (PoA) v2.0 testnet launch on Nov. 5. This upgrade provides a safer system for selecting block producers.
The OKEx Tether premium (USDT), which measures the difference in its China-based peer to peer (P2P), trades and the official U.S. currency currency, has slightly improved.
OKEx USDT peer-to-peer premium vs. USD. Source: OKEx
The current 99% indicator is somewhat bearish and signals low demand from cryptocurrency traders for stablecoins. This is still a significant improvement on the 5% discount in October.
The generalized price fall also negatively affected the open interest in cryptocurrency total futures. The move was nevertheless expected as the total market cap fell and liquidations of approximately $2.7 billion occurred during the week.
Total crypto aggregated futures open to interest Source: Coinglass.com
The indicator was still at $50.3 billion, which is 60% more than it was two months ago. Open interest declines are not always bearish. However, it is important to keep a certain level as liquidity providers and market makers continue to enter the market.
Although the above data may not be encouraging, considering that Bitcoin (BTC), Ether (ETH), suffered significant losses this week, overall market structure held well. While those who bet on “altcoin season” may have disappointed, there was no generalized 15% loss or greater.
Risk is inherent in every investment or trading move. Before making any investment or trading move, you should do your research.