Broader Crypto Market Recovers, Terras LUNA Top Performer
After a week of brutal correction and downfall, the broader cryptocurrency has once again entered a recovery zone. Bitcoin and almost the entire altcoin space have registered a strong bounce back.
As of press time, Bitcoin is trading 6.67% up at $48,778 levels with a market cap of $928 billion. The world’s largest cryptocurrency is showing strong signs of recovery, however, could face two major resistance at $50,000 and $53,000 respectively post which we can confirm the uptrend.
However, Bitcoin is not the only asset class to face this brutal correction. The fears concerning the fast spread of the Omicron Covid variant are getting real as a result of which we have seen strong correction inequities as well as Gold.
Bitcoin Gold S&P 500 (Courtesy: Santiment)
On the other hand, the Bitcoin supply held by BTC miners has been on a gradual increase. As per on-chain data provider Santiment, the Bitcoin miner unspent supply is sitting at just 500 BTC below its all-time high. On-chain data provider Glassnode reports that miners have started HODLing significantly large amounts of BTC since the March 2020 crash.
Bitcoin BTC Miner Unspent Supply (Courtesy: Glassnode)
As per the latest report from CoinShares, the digital asset investment products witnessed the largest outflows tootling at $142 million for the week through December 17. This was the first major outflow following a 17-week run inflow since June 2021.
Bitcoin witnessed total outflows tootling at USD $89 million while Ethereum recorded net outflows at USD $64 million.
Altcoin News: Terra’s LUNA Leads Altcoin Space Rally Along With Avalanche
Along with Bitcoin, the altcoin space has also bounced back from the brutal market crash over the last week. Leading the gains in the altcoin space is Terraform Lab’s native cryptocurrency LUNA.
Terraforms Labs is becoming one of the largest destinations for hosting DeFi protocols. Recently, Terra toppled Binance Smart Chain (BSC) to become the second biggest DeFi platform in terms of total value locked (TVL) after Ethereum.
The total value locked (TVL) on Terra currently is more than $17 billion. One of the blue-chip projects on Terra dubbed ASTROPORT recently crossed $1 billion in TVL.
Currently, Terraform Labs hosts a total of 13 active protocols on the platform. As per reports, more than 140+ protocols would arrive on Terra in the upcoming year in 2022.
Terra’s native crypto LUNA has surged more than 50% over the last week despite the crypto market rout. As of press time, LUNA is trading at an all-time high of $84 with a market cap of $31.2 billion. LUNA is currently the ninth-largest crypto.
The next big performer in the top ten altcoin space is Avalanche (AVAX). Avalanche too has gained 44% over the last week and is currently trading 15% up at a price of $118.5 with a market cap of $28 billion.
Avalanche is yet another Layer 1 solution posing strong competition to Ethereum and other in the DApp and the DeFi space.
Coming to Ethereum (ETH), the world’s second-largest cryptocurrency has been hovering around $4,000 levels. However, it has been under downward pressure off lately. However, Ethereum developers have been working on additional developments for the transition to Ethereum 2.0.
On Monday, Ethereum lead developer Tim Beiko announced the launch of the Kintsugi Merge Testnet. Beiko asks all Ethereum-based projects to start testing and prototyping on Kintsugi to identify any potential issues so that the developers can incorporate the change in future client upgrades.
Beiko wrote: “Although client development and UX continue to be refined, we encourage the community to start using Kintsugi to familiarize themselves with Ethereum in a post-merge context. For application developers, as previously explained, not much will change. Tooling which only interacts with either the consensus or execution layer is also largely unaffected. Infrastructure which depends on both layers is most likely to need to adapt to support The Merge”.
Crypto Market News: Nike, Adidas Enters the World of NFTs, Instagram Exploring NFTs
Non-fungible tokens (NFTs) continue to be at the center of new developments taking place in the crypto space. Big brands have been jumping into the NFT game recently finding interesting use cases around it.
Footwear giants like Nike and Adidas have announced that they are planning to enter the worlds of Metaverse and NFTs. These big brands are exploring selling branded products in the virtual world by leveraging the power of NFTs.
Social media giant Instagram is also exploring the possibility of integrating NFTs into their platform. Instagram chief Adam Mosseri recently confirmed the same during a Q&A session on Instagram stories. He noted: “Nothing to announce yet but we are definitely actively exploring NFTs and how we can make them more accessible to a broader audience. I think it is an interesting place that we can play and also a way to hopefully help creators”.