Polygon and Terra Defy Broader Market Correction With Gains

The broader cryptocurrency market has been moving sideways for a while with Bitcoin constantly hovering around $56,000 levels. However, two cryptocurrencies Polygon’s MATIC and Terra’s LUNA have decided to defy the market trend by moving northwards. 

LUNA, the native cryptocurrency of the Terra blockchain touched an all-time high of $65 as demand for the network’s UST stablecoin surges with users chasing multiple incentive programs. 

LUNA serves as an algorithmic balancing system helping stable coins running on the Terra blockchain to maintain parity with several other fiat currencies. Since the Columbus-5 upgrade during the end of September 2021, more than 92 million LUNA tokens have been burned adding fuel to the LUNA price rally. 

Another factor behind the LUNA price rally could be a number of incentive programs from Terra-based decentralized finance (DeFi) platforms. 

The Terra blockchain has quickly moved at the forefront of the DeFi in recent times. The total value locked (TVL) on Terra has crossed $12 billion and is now the fifth-largest blockchain project just behind that of Avalanche. Amid all these strong fundamental developments, LUNA’s price has surged more than 60% in just within a week. 

Another cryptocurrency that is defying the market trend is Polygon’s MATIC. On Wednesday, the MATIC price rallied more than 15% moving all the way to $2.20. The price rally in Polygon (MATIC) has been triggered by a number of different factors. 

On Wednesday, December 1, 21Shares announced the launch of a Polygon exchange-traded product (ETP) on the Euronext exchanges in Paris and Amsterdam. For this ETP product, 21Shares has partnered with U.K.-based infrastructure provider Copper who will cater to the custodial and staking requirements. 

Furthermore, decentralized exchange IDEX announced that it will be launching a new v3 Hybrid Liquidity DEX on Polygon. The simple reason behind this is that Polygon’s transaction fees are much cheaper than that of Ethereum. 

Moreover, Polygon is also gearing up for a “zk Summit” next week on December 9. Polygon said that it is “focusing on ZK cryptography as the most promising solution for scaling #Ethereum. Witness the live demos of this technology during the action-packed summit”. 

Bitcoin (BTC) and Ethereum (ETH) Continue to Move Sideways Amid Fears of Omicron Covid Variant Spread

The recent spread of the Omicron Covid variant has put the global stock markets along with the crypto markets under pressure. As a result, the world’s two largest cryptocurrencies have been moving sideways and consolidating a lot. 

As per on-chain data provider Santiment, the Bitcoin exchange inflows have outpaced the outflows by a significant number. Santiment further reports: “#FUD combined with a jump in #COVID19 concerns is causing traders to consider selling funds. On Wednesday, there were 10,242 more $BTC moving on to exchanges vs. moving off exchanges”. 

Bitcoin BTC Exchange Activity

Bitcoin BTC Exchange Activity (courtesy: Santiment) 

However, big institutions continue accumulating BTC. Institutions like the Purpose Bitcoin ETF have bought the recent dip, as per data from Glassnode. 

Purpose Bitcoin ETF Flowsh

Purpose Bitcoin ETF Flows (Courtesy: Glassnode) 

On the other hand, the world’s second-largest cryptocurrency Ethereum (ETH) has been also flirting around $4,500 levels. However, the positive thing is that Ethereum’s mega-whale addresses have done heavy accumulation in the last two months. 

As on-chain data provider Santiment reports: “Ethereum’s mega whale addresses (holding 100k to 10m $ETH) have now accumulated 676k $ETH in just the past 12 days, 1.28m $ETH in the last 45 days, and 1.46m $ETH in the past 60 days. This is a great sign that key stakeholders maintain confidence”. 

Ethereum ETH Mega Whale

Ethereum ETH Mega Whale Accumulation (Courtesy: Santiment) 

Crypto Market News: SEC Chairman Sees Bitcoin As a Competition to the U.S. Banking System

During his recent remarks at the DACOM Summit 2021, SEC Chairman Gary Gensler said that Bitcoin has emerged as “off-the-grid” alternative to the traditional financial system. 

“We layered over our digital money system about 40 years ago with money laundering and various sanctions and regimes around the globe; we layered that over a digital currency system called our banking system,” Gensler said. “In 2008, Satoshi Nakamoto wrote this paper in part as a reaction, an off-the-grid type of approach. It’s not surprising that there’s some competition that you and I don’t support but that’s trying to undermine that worldwide consensus.” 

On Wednesday, December 1, social media giant Facebook said that it has lifted its ban on crypto advertisements. In its official announcement, Facebook noted: “We’re doing this because the cryptocurrency landscape has continued to mature and stabilize in recent years and has seen more government regulations that are setting clearer rules for their industry”. 

Post stepping down as the Twitter CEO earlier this week, Jack Dorsey has increased his involvement in the developments in the blockchain and the crypto space. As a result, his financial services Square Inc. has announced a complete rebranding to Block Inc. Furthermore, Square Crypto, it’s subsidiary focused on Bitcoin development, has been rebranded to Spiral. 

DeFi protocol BadgerDAO recently suffered a major frontend attack losing more than $120 million of investors’ money. The protocol fell victim to an attack by the attacker who managed to run a malicious script on the protocol’s frontend website. 

In its recent update on Twitter, BadgerDAO noted: “Badger has received reports of unauthorized withdrawals of user funds. As Badger engineers investigate this, all smart contracts have been paused to prevent further withdrawals. Our investigation is ongoing and we will release further information as soon as possible”.