Crypto.com Weekly Market Update (Week 31, 02/08/2021 - 08/08/2021)
BTC breaks the $45,000 mark. All token prices are on the rise.
Highlights
Bitcoin surged above $40,000 on Friday and continued its winning streak again. On Sunday, Bitcoin managed to hit above $45,000 for the first time since mid-May with a dominance of 47.23%.
Ethereum has gained more than 14% as the London hard fork went live on Thursday. The upgrade contains EIP-1559 that aims to counterbalance Ether’s increasing supply, prevent economic abstraction of Ether, reduce fee volatility, and increase fee market efficiency alongside other EIPs (ref). The gain continued, and the price broke the $3,100 mark for the first time since May.
Overall, the price and volume index grew by11.18% and 7.61% respectively, while the volatility index dropped by 37.57%.
Check the latest prices on crypto.com/price.
Price Index
Overall trend
The prices of all tokens of the index surged.
Top 3 price gainers
ETH (+20.23%), XMR (+14.32%), ADA (+9.07%)
Benchmark: BTC (+8.25%)
Notable events
Ethereum’s highly anticipated London hard fork, including the EIP-1559, finally went live at 12:33 UTC on August 5th. The EIP-1159 replaces the bidding-style fee market and fixed block size with a compulsory base fee plus optional tip and variable block size. The new model can attain economic efficiency easier than before and potentially mitigate the volatility in transaction fees. As the base fee would be burnt, the new model could bring deflation to Ether (ref). The network has burned 4,600 ETH (around $12 million) in the first 24 hours since the upgrade (ref). Meanwhile, the price of ETH also climbed after the hard fork recaptured the $3,000 threshold of May (ref).
Monero’s former maintainer was arrested in the U.S. for allegations unrelated to cryptocurrency (ref).
Cardano(ADA) founder Charles Hoskinson has confirmed that after the Alonzo hard fork, smart contracts will be available on the cryptocurrency’s network (ref). Besides, IOHK, the developers behind Cardano, have announced that they have begun onboarding users for their Alonzo Purple testnet, the third phase in Cardano’s overall Alonzo rollout plan (ref).
Volume Index
Overall trend
There was a mixed bag for tokens’ volumes.
Top 3 volume gainers
ETH (+30.63%), XTZ (+26.14%), DOT (+18.67%)
Top 3 volume losers
ATOM (-10.68%), BTC (-3.59%), EOS (-3.00%)
Benchmark: BTC (-3.59%)
Tezos (XTZ) completed the seventh forkless upgrade with the introduction of Granada, cutting block times in half and reducing smart contract gas consumption (ref). Additionally, decentralised crowdfunding platform Rocket launchpad launched in the Tezos ecosystem (ref).
The U.S. Congress is expected to vote on a new bill regarding cryptocurrency taxation on August 7th. U.S. lawmakers proposed a new cryptocurrency tax policy that is expected to raise $28 billion in revenue. According to the bill, digital asset transactions worth over $10,000 have to be reported to the Internal Revenue Services (IRS), and the funds would form part of the funds for a $550 billion budget to improve the country’s infrastructure (ref).
Volatility Index
Overall trend
All tokens’ volatility plunged.
Top 3 volatility decreases
ADA (-79.74%), LINK (-57.46%), EOS (-45.25%)
Benchmark: BTC (-35.09%)
Notable events
Chainlink announced the Cross-Chain Interoperability Protocol (CCIP) blueprint, a "new global standard for decentralised inter-blockchain messaging, data, and token movements.” Together with the protocol, Chainlink also announced the launch of a Programmable Token Bridge that uses CCIP and its automated smart contract service - Keepers (ref).
Top Industry News
Ethereum network burns $12 million in ETH in first 24 hours since EIP-1559
JPMorgan now offers clients access to six crypto funds... but only if they ask
BREAKING: White House supports only minor changes to crypto tax proposal
After Europe, Binance now shuts derivatives trading for Hong Kong users
Top DeFi News
Cardano launches first fully public testnet that supports smart contracts
Biggest DAOs now hold $6B worth of digital assets: ConsenSys
Gensler sets SEC sights on DeFi, crypto lending and more in expansive speech on regulation
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