The price of Bitcoin has settled to around $60,000. Bitcoin’s dominance continues to drop, which means that altcoins have had a strong week. Smart contract platforms and Shiba Inu are on the rise. The DeFi sector is breaking new records once again.
The price of Bitcoin remains stable
The graph below shows the price development of Bitcoin over this fall. One candle represents one day. The blue and purple lines represent moving averages of 50 and 200 days.
The price of Bitcoin moved above these averages about a month ago. October was an excellent month for Bitcoin and it closed with a higher price than any month before.
The price of Bitcoin looks strong above the 50- and 200-day averages. This is traditionally an indicator of a continuation in a bull market.
On-chain data has provided strong support for Bitcoin’s positive price development since the summer. Popular analyst Will Clemente tweeted the following:
Comparing the cost basis (realized price) of STHs & LTHs has given us insight into the macro BTC market structure.
When STH's cost basis overextends from LTH's, it's time to be cautious. When STH's cost basis is below LTH's, it's time to buy.
Currently far from "overheated" pic.twitter.com/GW32RLGJ1I
— Will Clemente (@WClementeIII) November 2, 2021
The graph compares the cost basis between LTH (long-term holder) and STH (short-term holder) investors. This data comes from Bitcoin wallets. Traditionally, a peak in this ratio has also meant a peak in the Bitcoin price. We are currently on a very low level.
Crypto investors have high expectations for November. Many expect the price of Bitcoin to reach $ 100,000. This is also what PlanB, the developer of the Stock-To-Flow model, believes.
Oct $61K new monthly close ATH!✅
Ok ok, 3% rounding error .. close enough for me
Next targets: Nov>$98K, Dec>$135K🚀 pic.twitter.com/7LSnQBYJ33
— PlanB (@100trillionUSD) November 1, 2021
PlanB has managed to forecast Bitcoin’s price development amazingly well since the summer. As the picture shows, the PlanB predictions have hit a bull’s eye.
Bitcoin’s dominance is unchanged
Bitcoin’s dominance is currently about 43.50 percent. You can see the development of BTC’s dominance from the graph below. The data is called CRYPTOCAP index and it can be found from TradingView.
Last week we saw a clear change in Bitcoin’s dominance. During September and October, Bitcoin’s dominance rose about eight percentage points. However, there has been a downturn since October 20th. This means that many altcoins have fared better than Bitcoin.
The drop in the market share can also be seen in Bitcoin’s price. It has been relatively stable between $60,000 and $65,000. At the same time, the prices of popular altcoins have increased significantly.
It is likely that the price of Bitcoin will see another rally in the near future. In this case, the altcoins may drop from the ride, and the dominance of Bitcoin increases again.
Smart contract platforms on the rise
As the dominance of Bitcoin is dropping, many altcoins have fared excellently. Most of the altcoins in the top-15 list are showing green colors compared to Bitcoin.
The image below shows the price development of the most popular altcoins compared to Bitcoin.
Polkadot is the biggest gainer with as much as a 12.42% increase compared to Bitcoin. This comes as no surprise, as Polkadot’s parachain auctions will launch in a week. It can be expected that the DOT price will continue its move higher.
Ethereum has also received some attention.
— Jason Pizzino 🌞 (@jasonpizzino) November 1, 2021
For the first time in its history, Ethereum recorded a deflationary week. This is because of the EIP-1559 upgrade, which was performed in the recent London Hard Fork. It burns (destroys) ETH tokens when new blocks are created.
Ethereum was so popular last week that more tokens were burned than new ones were mined. Ethereum also reached a new ATH record at the end of an excellent week. Last night, the ETH price went even higher to $4638.
In addition to Polkadot and Ethereum, Binance Coin, Solana, Terra, and Avalanche have also performed excellently. The meme coin Shiba Inu has also continued to go up. Accompanied by great popularity, Shiba Inu has already risen to the top ten coins and above Dogecoin.
DeFi sector breaks records again
The DeFi sector has been breaking records for many weeks in a row. Thus, it should come as no surprise that records have been broken this week as well. At the time of the previous market overview, the TVL (total value locked) of the DeFi sector was $245.25 billion. Today, TVL is $254.86 billion.
We have seen some significant changes at the protocol level. Curve has broken the $20 billion TVL threshold as the first DeFi platform. This is as much as the entire DeFi market TVL was in December 2020!
Aave has fallen third on the list. It has lost more than a fifth of its liquidity. This is probably due to a discussion of the potential vulnerability of Aave. This has driven project developers into a dispute with Yearn Finance.
Next, let’s look at the blockchain ranking list.
Somewhat surprisingly, Ethereum’s TVL has risen the most. We are used to seeing projects such as Solana and Avalanche to show higher gains.
Tron has also made a big rise with 33 percent. Liquidity in the platform is evenly distributed between JustLend, JustCryptos, JustStables, and JustSwap protocols. These protocols are named after Justin Sun, the founder of Tron.