Crypto.com Weekly Market Update (Week 19, 10/05/2021 - 16/05/2021)
BTC at $44.8K, ETH at $3,427; PoW coins dropped.
Market Recap
Bitcoin has fallen more than 17% this week and struggled to overcome the $50,000 level after Elon Musk’s announcement that Tesla would stop receiving BTC payments for its electric vehicles on Wednesday, citing environmental concerns. At one point, it had slipped to an 11-week low at $46,700 on Sunday morning. At the time of writing, Bitcoin’s price sits at $45,000 and market dominance has declined more than 4% in a week to 40%.
Meanwhile, Ethereum hit a new record high of $4,337 on Thursday before correcting sharply along with the entire market. ETH sits at around the $3,400 level at the time of writing.
Overall, the price index fell 11.90%; the volume index grew 2.63% while the volatility plunged 92.26%.
Check the latest prices on crypto.com/price.
Price Index
Almost all token prices dropped except ADA (+26.52%), XLM (+17.42%), and DOT (+7.91%)
Top 3 losers: LINK (-17.52%), BTC (-17.32%), XMR (-15.31%)
Benchmark: BTC (-17.32%)
Tesla stopped taking bitcoin for car purchases due to the “great cost to the environment” for Bitcoin mining, announced by Tesla CEO Elon Musk (ref). But other cryptocurrencies, which use alternatives to Bitcoin’s proof-of-work algorithm like proof-of-stake, have benefited from Musk’s announcement (ref). Furthermore, Elon threatened to dump all of Tesla's Bitcoin holdings. His U-turn on Bitcoin caused its price to drop from approximately $57,000 to a multi-month low of around $47,000. Meanwhile, Elon said he's working with Dogecoin developers to improve “system transaction efficiency" (ref1). However, MicroStrategy wasn’t fazed by Elon’s criticism and brought another $15 million Bitcoin (ref).
Cardano was preparing to launch a decentralized stake pool operator (ref).
Polkadot incorporated PARSIQ, a smart trigger platform that uses smart contracts to collect data from different blockchains. PARSIQ uses smart triggers to send alerts on transactions to traders, bridging the gap between chains and off-chain apps. Bitcoin, Ethereum, Solana, and Binance all use PARSIQ (ref).
Volume Index
There was a mixed bag for token volumes.
Top 3 increase: ADA (+55.85%), XLM (+54.66%), DOT (+54.35%)
Top 3 decrease: XMR (-32.05%), XTZ (-30.94%), LINK (-21.24%)
Benchmark: BTC (-4.54%)
Volatility Index
All token volatility plummeted.
Top 3 decrease: BTC (-92.31%), DOT (-90.72%), XMR (-90.20%)
Benchmark: BTC (-92.31%)
Top News
Crypto.com becomes first cryptocurrency platform to receive MFSA Class 3 license
Tesla stops taking bitcoin for car purchases, citing 'great cost to the environment'
Binance is reportedly under investigation from IRS and Justice Department
Top DeFi News
Crypto.com, Yam Finance, and UMA to Collaborate on a Suite of NFT Products
DeFi startup Balancer Labs rolls out latest version of its automated market-making protocol
1inch Network increases liquidity sources by expanding to Polygon
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