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Market Review 11/9: Bitcoin and Ethereum breaking records

Bitcoin hit a new ATH on Tuesday morning! The price of Ethereum has also risen close to $5,000. The total value of the cryptocurrency market exceeded three trillion dollars. The altcoin market is also on the rise along with Bitcoin. As usual, the DeFi sector has made a new TVL record.

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Bitcoin surpassed $68,000

At the time of writing this article, the price of Bitcoin is about $68,000. The previous ATH was seen in October when the price of Bitcoin jumped above $67,000. This time, the price exceeded even $68,500. Looks like the $70,000 barrier will be breached any day.

Let’s take a look at Bitcoin’s daily price developments over the past few months. The graphic below also shows 50- and 200-day moving averages (blue and purple lines).

bitcoin 11-9-21

A new ATH means that the price of Bitcoin is back at the price discovery level. This is an area where no historical data can be found. We look forward to what will happen in the next few days!

There was another record also broken on Monday. Bitcoin’s closing price for the previous week was higher than ever before. At the same time, the market cap of the entire crypto market hit $3 trillion for the first time.

We expect the price of Bitcoin to continue rising towards $100,000. So far, the price of Bitcoin has followed the Stock-To-Flow model astonishingly well. The creator of Stock-To-Flow, PlanB, has predicted Bitcoin to hit $98,000 at the end of November.

There are currently no signs that Bitcoin’s price would collapse from its current level. One should still expect volatility. That is just how the crypto market works.

Bitcoin’s Taproot upgrade will also take place early next week. This doesn’t have an impact on Bitcoin from the perspective of a regular user. However, it is possible that Taproot will move the price of Bitcoin even further if there is hype around it.

Bitcoin’s dominance on the rise

Bitcoin’s dominance is currently 44.0 percent. Last week, the corresponding figure was about half a percent lower. At its lowest, the dominance was 42.40 percent on Sunday, before surging higher.

Bitcoin’s dominance has grown thanks to the latest price movements. Altcoins have fallen off the wagon.

bitcoin dominance 11-9-21

Many traders are currently considering a reversal of the trend. If Bitcoin starts a new price rally, this would also increase its market dominance. It’s unlikely altcoins would now grow even faster.

Bitcoin’s strong October is shown in the graphic above. The dominance hit 48% before altcoins took over the market. The dominance seems to be on the rise again.

A strong week for smart contract platforms

Bitcoin’s price move hasn’t stopped altcoins from succeeding. Most of the major alts are showing strength.

The image below shows the top 15 altcoins on the market with price performance compared to Bitcoin.

altcoin market 11-9-21

Smart contract platforms have performed again very well. This trend has been visible on the altcoin market since last summer. Ethereum, Binance Coin, Cardano, Solana, Terra, and Avalanche are all on the plus side compared to Bitcoin.

Polkadot is a little bit on the minus compared to Bitcoin. However, Polkadot has generally done quite well lately. Polkadot’s parachain auctions will begin soon, which is expected to boost the price of DOT.

Ethereum is less than one percent away from a new ATH. On Monday, Ethereum hit $4837. Five thousand dollars will be crossed at any moment. The positive price development is supported by the recent EIP-1559 update, which burns Ethers at a rapid pace.

Ether investors have been rewarded with more than a 10x increase in 2021. A year ago, ETH price was less than $450. We believe that ETH price will reach $10,000 before this bull market is over.

The biggest loser of the top 15 coins was Shiba Inu. It seems that the recent bull run has come to an end, at least for the time being.

The biggest winner of the week is Kadena. Its KDN token is up more than 130 percent compared to Bitcoin. Over the past month, KDN has outperformed Bitcoin by more than 650 percent. Kadena is an interesting blockchain that combines Proof of Work consensus with smart contracts.

We wrote recently about the massive advertising campaign of Crypto.com featuring Matt Damon. It seems like the Hollywood star has brought in some new investors since the price of CRO has risen more than 50% against Bitcoin. The price of the CRO token is also benefiting from the recent launch of the Cronos Mainnet.

The DeFi sector boom continues

There has been a boom in the DeFi sector for several weeks now. The total liquidity locked (TVL) into the DeFi market has reached new records week after week. Last week was no exception.

defi tvl 11-9-21

We sit currently at $275 billion. This figure was $254 billion a week ago, which means a growth of about eight percent. One month ago, TVL was just over $200 billion.

We have also seen major changes at the protocol level. Curve was the first protocol to hit the $20 billion TVL mark. Maker is right behind it and just about to join the $20 billion club.

defi protocols 11-9-21

The decentralized cryptocurrency exchange Uniswap has also returned to the top 10. Its TVL has grown by more than 80 percent in one week. It is worth pointing out, that for Uniswap, the trading volume provides a better understanding of its market dominance than TVL.

Over the past seven days, Uniswap had a DEX market share of 64 percent. It has a trading volume more than four times bigger than SushiSwap and almost ten times higher than Curve.

This is the current situation of the DeFi blockchains.

defi chains 11-9-21

The growth in TVL is fairly evenly distributed across all major platforms. Ethereum is still firmly the number one. Its market share has been between 65% and 75% over the last six months.

The biggest gainers of the autumn, Solana, Terra, and Avalanche, also continue to grow. All three increase their TVL week after week. Binance Smart Chain is still second on the list, but it’s slowly losing market share to the trio mentioned earlier.

Photo by Domenico Loia on Unsplash

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