News
07
Jun
crypto market review

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Market overview 6/7: Bitcoin ended a nine-week losing run

Bitcoin’s losing run is finally over! For now, at least. The downtrend lasted nine weeks. The joy was short-lived though because the price has fallen back to the 29,500-dollar range. Tron has been the best-performing major currency.

A green weekly candle on Bitcoin’s price

Bitcoin’s price is 29,500 dollars at the time of writing this article. This number was 2000 dollars higher a week ago. Yet, Bitcoin managed to print a green weekly candle! This is possible because Bitcoin’s price started to fall on the night between Monday and Tuesday.

The graphic below shows Bitcoin’s price development on weekly candles.

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The situation looked promising when Bitcoin’s price moved to $32,500 last Tuesday. This run was short-lived, though, and the price returned back to $29,500 by Wednesday.

Another price run took place on Sunday. Bitcoin moved to $31,500 which also turned the weekly candle green. The price had fallen nine consecutive weeks before that. The previous record was six weeks, which happened in the early years of Bitcoin.

Sunday’s price move lasted also just one day. Bitcoin fell back to $29,000 last night. The graph below shows last week’s price action on one-hour candles. There was lots of volatility.

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Nothing has changed in the big picture. Bitcoin is still following the stock market, which means it’s influenced by Fed’s decisions more than anything else.

This week could have a volatile end because we’ll get the new inflation print from the U.S. on Friday. Market expectations are very close to last month’s number. Everyone is praying for inflation to go down, but it doesn’t look likely. At least not yet.

U.S. inflation is the key to everything right now. Fed will continue to tighten its monetary policy until the inflation monster is slain. This creates a strong headwind for the stock market. Since Bitcoin is following the stock market closely, it’ll impact the crypto market too.

Once inflation shows real signs of falling, the Fed can begin to ease. This is when the next bull market can start. The situation hasn’t really changed in the previous months. We must sit tight and wait for the inflation to die out.

Tron is moving higher in the crypto rankings

Now it’s time to look at the broader crypto market. We should take into consideration that Bitcoin’s dominance is up 0,5 percentage points again. This means tough times continue for most of the altcoins. Bitcoin’s dominance was up a full percentage point before yesterday’s crash.

Below is a list of the top 15 cryptocurrencies and their performance against Bitcoin.

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When leaving the stablecoins out, there is just one crypto showing green color in the past seven days: Tron. Its native token TRX is boosted again by the new USDD stablecoin. Tron is trying to replicate the success of Terra – without the catastrophic crash, of course.

Tron founder Justin Sun believes in USDD because it is overcollateralized with BTC, USDT, and TRX.

USDD is currently backed by 14,040 BTC, 240 million USDT, and 1.9 billion TRX.

When we look at the top 100 list, there are just two cryptos with better than 10% performance against Bitcoin. These are eCash (+15.8%) and Helium (+15%).

ECash is a lesser-known fork of Bitcoin Cash. It was originally called Bitcoin Cash ABC until a rebranding took place in 2021. The coin, which uses ticker XEC, has been boosted by a network upgrade.

Helium was a popular investment for many altcoin investors in 2021. The project is building a P2P internet, which means it can be placed in the IoT category. Helium’s native token HNT is mooning because the project is expected to do a big announcement at the upcoming Consensus conference.

Tron is showing strength in the DeFi sector

Now, let’s look at the DeFi sector. There hasn’t been much to report lately from this industry. The whole DeFi sector is still heavily down after the collapse of Terra. The TVL number of the entire DeFi industry is almost 50% down from where it was before Terra’s explosion.

The TVL is down about 7 billion dollars since last week. Today’s number is 105 billion dollars.

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There are almost no changes at the protocol level. The only difference is that Curve has overtaken Aave and reclaimed second place. The difference between these protocols was marginal last week and it remains small.

Though, one should note that defillama.com is listing Aave V3 in a separate row. This means Aave is missing about 1.5 billion USD in liquidity. If it was tracked properly, the protocol would be at the top of the list!

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When you look at the 1d, 7d, and 30d columns, it’s just red color everywhere. JustLend is the only exception. This is a liquidity protocol on the Tron platform. It’s boosted by the previously mentioned USDD stablecoin.

Finally, let’s look at the platform rankings. The top 10 is unchanged from the previous week.

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Tron and Waves are the only platforms with positive TVL growth. Even they are up just a couple of percent, so there is very little to celebrate. It also looks like the growth of Tron is slowing down week by week. How far can the USDD stablecoin push this platform?

The entire sector is still suffering from the Terra hangover. It might be we have to wait until the next bull run until the DeFi industry fully recovers from that crash.

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