News
22
Mar
crypto-market-review-11

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Market overview 3/22: Cryptocurrencies in a strong uptrend

Cryptocurrencies have been flying high. Most of the top 100 coins are up more than 10% since last week. Avalanche, Apecoin, and Aave stand out from the largest altcoins. We also see lots of green colors in the DeFi sector.

Bitcoin’s price climbed above 43.000 dollars

Bitcoin’s price is $42.900 at the time of writing this article. It was just $38.700 a week ago, which means we’ve witnessed a nice move upwards. Bitcoin has followed the global stock markets, which have been printing green colors.

The graphic below shows Bitcoin’s price development in the past six months. The blue line is the 50-day moving average and the purple line is the 200-day moving average.

btc-220322

There is one significant change since last week: Bitcoin has climbed above the 50-day moving average and even made it as a support. A week ago, Bitcoin tried to push through this resistance but failed. It would be great if the price could stay above the 50-day moving average for a longer period.

We can also see a significant reversal in the 50-day moving average. The trend line is now moving up! It’s gone down since December 3rd, 2021. The next target is the 200-day moving average. When the 50-day moving average cuts the 200-day line from below it gives a bull market signal called the golden cross.

The mood has also changed in social media. More and more analysts are talking about the spring rally. One of them is Data Dash, who has been spot on with the market movements in the past year or so. He is now predicting there is a new bull market starting in April.

We are still somewhat cautious. It is true that many on-chain signals support the idea of a trend reversal. However, there are so many headwinds in the macroeconomy for the stock markets. As long as Bitcoin is correlated with stocks, it’s difficult to see a massive rally taking place.

A major event took place last week which investors have been waiting for months. The Federal Reserve finally made their first rate hike in years. The Federal Funds Rate is now moved from zero to 0.25%. The next Fed meeting takes place in May. It’s possible we see a 0.50% rise in the future.

The Fed chairman Jerome Powell is giving strong signals of his intentions. Fed is determined to fight inflation and move interest rates higher. This is a strong headwind for the U.S. and the global economy. On top of that, we have the war in Ukraine, potential food crisis and energy crisis, extremely high inflation, etc.

There are lots of uncertainties in the stock market, which can (and will) impact the crypto market as well.

Avalanche had a great week

Next, it’s time to look at the altcoin market. Bitcoin’s dominance has fallen about one percentage point from last week. This typically translates to green color in the altcoin market. That is also the case this week.

Below is the cryptocurrency top 15 ranking list and the performance against Bitcoin in the previous 24h, 7d, and 30d periods.

altcoins-220322

Avalanche’s AVAX token stands out on the list. It’s up more than 30% in one week in dollar terms and 19% against Bitcoin as well. It seems like the price has got a boost from Avalanche Summit. Investors are expecting to receive some positive news from this event.

The major reason for Bitcoin’s falling dominance is Ethereum. The price of Ether is up more than seven percent against Bitcoin. Ether also broke a 3-month long downtrend against Bitcoin. This signal got many technical analysts excited about the price.

We also reported on our latest news review of how Ethereum development company ConsenSys announced that they’ll be investing almost half a billion dollars on Ether.

When we go further down in the top 100 list, we’ll find Apecoin. Coinmarketcap is giving Apecoin a price rise of 900% in one week, but the exact number is debatable. Apecoin wasn’t even on the market a week ago so there is no previous price point. Apecoin is covered in this week’s news article.

Ethereum Classic has also had a great week. One reason behind this could be the development of Ethereum 2.0, which we also mentioned in this week’s news article. Ethereum Classic will soon be the number one Proof of Work smart contract platform. This could attract many current Ethereum miners and those investors who don’t like Proof of Stake. Ethereum Classic is up more than 70% in dollar terms.

We should also mention Aave, which is up over 37% in dollar terms. Aave is boosted by the release of Aave V3. It’s a significant update to the protocol.

DeFi sector on the rise

The total liquidity of the DeFi sector has gone up with the rest of the market. The TVL number was just 197.57 billion dollars a week ago – now we are looking at 215.67 billion. Up more than nine percent since last week.

You’ll find up-to-date statistics at defillama.com

TVL can be up because of fresh liquidity or because the collateral value of cryptocurrencies (ETH, WBTC, etc.) has gone up in dollar terms. The DeFi sector has about the same liquidity now it had in late October, this is five months ago.

All major DeFi protocols have seen growth in liquidity. There are no stand-out winners in the top 10 list.

Curve is still leading the pack. It’s the only DeFi protocol with over 20 billion dollars in liquidity. MakerDAO holds second place, but it could be overtaken by fast-growing Lido any day now.

defiprot-220322

We mentioned Lido and Anchor last week already. Both are growing fast on the Terra platform. When we look at the last 30 days, these two clearly stand out. It wouldn’t be surprising to see both Lido and Anchor move above MakerDAO soon.

The previously mentioned Aave has been boosted by the V3 launch. It has recorded the highest TVL growth out of the top 10 protocols. Aave has also overtaken Convex Finance and moved to 5th place. PancakeSwap and InstaDapp have also switched positions at 9th and 10th.

Finally, let’s look at the blockchains.

defichains-220322

Every major blockchain has also increased its liquidity. Out of the top blockchains, Ethereum has gained the most. Major DeFi protocols, such as Aave and Curve, have contributed to this growth.

Crypto.com’s Cronos platform was the best performer a week ago. It has grown again by more than 20%. When we look at the monthly change, Cronos is doing really well with Waves and Terra.

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