22.3 C
Wednesday, August 17, 2022
HomeMarkets2 key metrics point toward further downside for the entire crypto market

2 key metrics point toward further downside for the entire crypto market

The market value of cryptocurrencies has been on a slight upward trend for the past three months, with Bitcoin (BTC) bouncing at $ 38,000 and Ethereum (ETH) at $ 2,800 on April 27, resulting in 1.75 trillion on April 27. Dollar support has been tested.

Total crypto market capitalization, US $ 1 billion. Source: TradingView

Cryptographic market total capital has fallen 3.5% over the past 7 days, with significant losers losing 18.8% from XRP, 10.2% from Cardano (ADA), and 9.7% of Polkadot (DOT) prices. Was a decrease.

Analyzing a wider range of altcoins will give you a more balanced situation. This includes a 25% profit from some Game Projects and Metaverse projects during the same period.

Weekly winners and losers in the top 80 coins. Source: Nomics

Apecoin (APE) rose 44% due to the Another Side Metaverse Land Auction scheduled for April 30th. The other side is being developed by the Yuga Labs, Animoca Brands and Bored Ape Yacht Club NFT teams, and NFT investors have high expectations for this project.

Native tokens for the move-to-earn lifestyle app STEPN (GMT) have recovered 28% after the US-based crypto exchange Coinbase announced plans to list tokens.

Nexo has increased by 15% after the cryptocurrency and derivatives exchange Binance announced its listing on April 29th. Nexo also announced plans to issue a credit card that accepts cryptocurrencies as collateral rather than selling the owner’s assets.

Zilliqa (ZIL) prices have been adjusted after tokens rose 380% in late March. This was after the project announced a metaverse service utilizing Nvidia technology on March 25th.

Meanwhile, according to DappRadar data, the Play-to-Earn unicorn Axie Infinity (AXS) has plummeted to its lowest level in nine months after a 15% drop in user and transaction counts over the last three decades.

Tether Premium shows a lack of demand from buyers

OKX Tether (USDT) Premium measures China-based retail demand and measures the difference between China-based peer-to-peer transactions and the US dollar.

Due to excessive purchase demand, the indicator is 100% above fair value. On the other hand, Tether’s market offers are flooded with bearish markets, with discounts of over 4%.

Tether (USDT) Peer-to-Peer vs. USD / CNY. Source: OKX

OKX Tether Premium peaked at 2% on April 28th and reached its highest level in 2022. The move happened at the same time that Bitcoin exceeded $ 40,000, but its price returned later that day. Currently, the tether premium is 0%, showing a neutral sentiment from retailers.

Futures markets show different emotions

Permanent contracts, also known as inverse swaps, have a built-in rate that is typically charged every 8 hours. Exchanges use this fee to avoid imbalances in exchange risk.

A positive funding rate indicates that longs (buyers) are demanding more leverage. However, if the short (seller) needs additional leverage and the funding rate is negative, the opposite situation will occur.

Cumulative 7-day permanent futures funding rate on April 29. Source: Coinglass

As shown above, the cumulative 7-day funding rate is slightly positive for Bitcoin and Ether. The data show that demand from longs (buyers) is slightly higher, but nothing forces traders to close their positions. For example, Luna’s positive weekly rate of 0.15% is equivalent to 0.6% per month, which is not relevant to most futures traders.

The lack of tether premiums in Asia and the flat perpetual premiums indicate a lack of demand from retailers as they struggle to maintain support for a cryptocurrency market capitalization of $ 1.75 trillion. increase.

The views and opinions expressed here are: author It does not necessarily reflect the views of Cointelegraph. All investment and transaction movements carry risks. When making a decision, you need to do your own research.