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As part of our crypto weekly roundup series, we will discuss the market driving factors, trends, and main events that happened in the crypto sector throughout the week.
The crypto market cap has grown 10% over the past week, and 26% in the last 30 days alone and daily trading volumes are up 64% compared to last month across all the major exchanges. These are some super bullish metrics pointing towards another potential leg up. Ethereum has almost touched the previous ATH level and many altcoins have surpassed the previous ATH and are going into the price discovery mode.
Let's discuss some of the key events that happened last week in the crypto space.
Bitcoin
According to on-chain analysis by Glassnode, Bitcoin is sitting in a very strong support zone between $45,000 and $50,000 due to 1.65 million BTC having on-chain value within this support area.
Bitcoin might come to Twitter, as they are testing Bitcoin Lightning Network tipping service where users will be able to tip each other in Bitcoin using Lightning Network with super cheap fees and ultra fast speeds.
Bitcoin exchange outflow stood at $3.8 million over the past week and $60.9 million during the last 30 days, according to the data compiled by CoinShares. These outflows show a strong accumulation trend that is still ongoing since the last few months.
Bitcoin market cap is close to $1 trillion, as it currently stands at just over $946 billion at the time of writing.
The Bitcoin Fear and Greed Index currently stands at 74 points which shows a strong indication towards a positive market sentiment.
Despite the upward price action, the Bitcoin dominance has decreased by 2% while Ethereum dominance has increased by 1.7%. Bitcoin has a current dominance of 41.1%.
The Takeaway
Bitcoin is showing a bullish momentum but it is facing strong resistance at the current price levels. We might see some consolidation at these levels before we witness another leg up. The on-chain data and fundamentals align with an upward price movement, as we are seeing strong accumulation trends and positive net exchange outflows.
Ethereum
While Bitcoin is struggling with key resistance levels, Ethereum is showing a strong momentum as it broke out of the $4,000 price target this week and came back to the consolidation phase once again.
Geth, one of Ethereum's largest standalone clients written in Go, experienced a bug that had split the Ethereum main chain into two. The bug was removed later and the issue was resolved.
The Arbitrum One mainnet has been officially released by Offchain Labs, the leading provider of Ethereum Layer-2 scaling solutions. Offchain Labs secured $120 million in funding for the project.
Over 11,500 ETH has been burned during the last 24 hours amid the rising transaction fees. Since the launch of EIP-1559, over 206,903 ETH ($812.5 million) have been burned so far.
According to data analysis firm Santiment, holding ETH is now less risky compared to holding other crypto assets due to its strong demand and fundamentals.
Bill Gurley, a renowned VC and an early investor in Uber has announced the addition of Ethereum in his personal portfolio.
The Ethereum hash rate now stands at 600 TH/s, the highest since the last major dip in July due to China cracking down on miners.
The ETH rally is majorly contributed by NFT craze and Play-to-Earn Games, as NFT marketplaces and gaming platforms are seeing a surge in value over the last few months.
The Takeaway
ETH is performing really well compared to BTC, and is slowly eating away the dominance. The projects built on Ethereum, mainly NFT and Play-to-earn games, are the main driving force behind the upward price action due to an increase in demand. Many analysts believe that it's just a matter of time that Ethereum surpasses the previous ATH and goes into the price discovery mode.
Altcoins
Cardano (ADA) has been on the rise since the last few weeks, surpassing $3.00 but saw a pullback due to a bug discovered in the smart contract feature that was disclosed by the community members on Reddit.
Next week, Cardano will deploy the ERC-20 converter on the testnet that will allow ERC-20 tokens to convert into the ADA equivalent.
Cardano saw a net inflow of $10.1 million during the last week alone, the largest that was ever recorded, according to the data provided by CoinShares.
Polkadot (DOT) has announced that the parachain auctions will last on 29th September on it’s canary network called Kusama (KSM). A total of 5 parachain auctions are currently auctioned, and Moonriver has already secured a slot.
Dogecoin is in the news once again, as Elon Musk confirmed that he is working with the developers to make Dogecoin more efficient and reduce the transaction costs.
Solana (SOL) has jumped 300% during the last month and secured a new ATH, surpassing the market cap of Dogecoin. SOL has increased in value by 20% over the last week alone. We have seen a rise in NFT projects on Solana where you can mint NFTs with the lowest costs. It’s about time we will see more DApps and DeFi projects getting deployed on Solana.
The Takeaway
The Altcoin season is in full swing, and ADA, DOT, SOL were among the biggest gainers during the last week. Once BTC price becomes stable, we might see many Altcoins swing to new ATH levels, and many of them will go into price discovery like SOL and ADA.
Conclusion
The crypto market is on fire and the bullish momentum is back. The Altcoins are booming while Bitcoin is struggling with key resistance levels between $50K and $52K. While ETH is close to it’s previous ATH level and many Altcoins have already surpassed their previous ATH levels, do you think BTC will go into the price discovery mode this month?
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