Crypto.com Weekly Market Update (Week 1, 04/01/2021 - 10/01/2021)
BTC at $34K; ETH at $1,070; All indices rallied.
Market Recap
Bitcoin’s energetic bull run continued to push its price to new highs. From Tuesday to Friday, it surged from $32,000 to the $40,000 level, gaining 27% in four days. It then tested $42,000 but struggled to gain its footing in this new all-time high level. By the end of the week, it had fallen below $40,000, currently trading at around $34,000.
Bitcoin’s dominance in market capitalization also fell from the highs of 71% on Saturday to 69% on Sunday. By the time of writing, Bitcoin sat on a market capitalization of around $737 billion. According to Skew, the open interest of Bitcoin futures and options respectively rose to new highs of $12 billion and $10 billion.
Meanwhile, Ethereum's market capitalization reached a new all-time high of $150 billion on Thursday. Its price surpassed the $1,300 level on Saturday and reached $1,352 on Sunday, which was only around 5% lower than the all-time high of $1,428 recorded in January 2018.
Overall, all indices spiked, and the price, volume, and volatility index grew by 21.44%, 62.76%, and 47.35% respectively.
Price Index
All token prices rose.
Top gainer: XLM (+117.48%)
Benchmark: BTC (+18.15%)
XLM's parabolic price action came as Ukraine announced an agreement with Stellar Development Foundation to develop its CBDC and digital asset strategy (ref).
Volume Index
All token volumes rose.
Top 3 increase: XLM (+610.49%), ETH (+112.19%), EOS (+108.20%)
Benchmark: BTC (+42.65%)
Ethereum gained more awareness as Google searches for 'Ethereum' hit an all-time high (ref). Meanwhile, buying likely related to the popular institutional trade to profit from Grayscale Ethereum Trust's high premiums which likely drove ETH price and volumes (ref).
Daniel Larimer, CTO of EOSIO developers block.one, resigned (ref). This also led to the fluctuation of EOS.
Volatility Index
Top increase: XLM (+240.41%), EOS (+108.91%), BTC (+63.73%)
Top decrease: ETH (-46.30%), ATOM (-20.91%)
Benchmark: BTC (+63.73%)
Top News
US regulator: Federally chartered banks can facilitate stablecoin payments, issue their own
Crypto Exchange Bakkt Nears Merger With Victory Park SPAC: Bloomberg
South Korea to introduce a 20% tax on crypto trading profits in 2023
Top DeFi News
LSE-listed fintech fund Augmentum launches DeFi investment strategy
Crypto exchange ShapeShift integrates DEXes, relieves user KYC burdens
DeFi integration and layer-2 tech back Matic Network’s (MATIC) 92% rally
Oasis Protocol Adds Shyft Network in Bid to Attract Institutions to DeFi
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