Crypto Market Weekly Recap - Mar Week2
Here we bring you a weekly recap of the crypto market. If you don't follow the market much, or don't have time to, then taking a few minutes to read our Market Weekly Recap once a week is enough (we hope so)!
The first week of March saw the market going up and down like a roller coaster. Bitcoin prices are highest at 42,000 and the lowest at 37,000. The whole market is in a pretty bad mood. Open Interest saw a slight rise, but did not come down even after the fall. This means that market speculation is generally expected to go down again, so market leverages are at a low level, and the margin is given enough.
No one wants to be liquidated.
A brief summary of some of the major events that happened at crypto in the past few days:
- President Biden signed an Executive Order on Digital Assets, and Yellen's comments seemed to be released in advance and then caused a big rise, which of course fell back in the next two days
- U.S. CPI rose to 7.9% in February, a new record in four decades
- South Korea's election, the new president is friendly to the Crypto industry, before saying that it will relax the regulation of the market
- AC left crypto and blockchain
- ImmutableX finished a 200 million USD fundraising, Temasek led, Tencent participated.
- Crypto industry also has various sanctions against Russia, such as Coinbase, Infra.
There is more microscopic shit happening, the following content will mention a few.
Crypto has completely become a plaything for US stocks, and Asian time is about to become garbage time
A fact that very much does not want to be acknowledged, as the headline says. The price of bitcoin is now highly linked to US stocks and is closely tied to US economic policy, and economic data. The main reason for the bull market prior to this is still the entry of US institutions, plus the increasing share of US mining.
The US is now fu*king taking over, like always.
The same is true for layer1s, laiyer2s, DeFi, and NFT. A great number of developer communities and innovative projects in technology and finance are largely dominated by North America. Crypto now seems to be a leading indicator for US stocks as it is 24 hours without pause. It is often said that crypto is illiquid, but it is not. Crypto is so liquid compared to other asset classes. You can buy and sell whenever you want at any time. So when the economy is good, money flows in easily. Conversely, once the economy goes a little bit wrong, it's easy for money to flow out.
Bitcoin is hardly a "digital gold" at this point, it's more like a tech stock in the U.S. or maybe the whole crypto industry is a tech stock in the U.S.
But to be honest, I don't think a lot of people realize the power of Bitcoin as an asset/money itself. A war has made some people realize the value of Bitcoin, but it will take time for that perception to expand and fester.
The Executive Order signed by Biden does not specifically emphasize decentralization or even SEC regulation of crypto. But rather focuses on CBDC and the technological innovation that blockchain will bring, ensuring that (if any) revolutionary innovative developments will happen in the US.
Is DeFi dead? Or will it?
Emotionally, I'm sure I don't want to admit this, but I have to admit that AC's withdrawal is actually a pretty obvious reflection of the lack of vitality and users in the current DeFi ecosystem. There are still some innovative things, but they are complex and difficult to understand, or the stories are not imaginary anymore.
Imagination has two layers: one is the size of the story itself; the second is how wide can the story or the concept spread and can be understood. Dogecoin, for example, is much easier to understand and accept than the DeFi protocols. The increasingly complex design of financial protocols brings innovation, but the popularity is still so poor that the number of people who can expect to accept it will be very limited.
Looking back, is DeFi really over? That's certainly not the case, but the development of DeFi has indeed encountered many bottlenecks. New users are attracted to NFTs or even Ponzi, and existing users are also limited in number. The acceptance threshold of the newly emerging protocol is too high, and not user-friendly.
The very basic demand for DeFi comes from the existence of Crypto assets themselves. As long as Crypto assets exist, there will be demand for financial products around these assets. This most primitive demand in crypto apart from Bitcoin itself is DeFi. In other words, as long as BTC, ETH does not go to zero, DeFi will have market demand. The market just needs better products.
Some market dynamics you might need to know
- Tornado Cash Co-Founder Says They Won't Comply With Sanctions Against Russia. Well, we do have a deal: crypto is decentralized community-owned. https://www.tokeninsight.com/en/latest/1447
- Polygon PoS chain was down for 8 hours and is back online. The team said that they would update it and it would not happen again. Well, who knows? https://www.tokeninsight.com/en/latest/1444
- Airdrop coming! Interest Rate Swap Protocol Swivel Finance Launches Governance Token $SWIV https://www.tokeninsight.com/en/latest/1445
- FTX Launches FTX Access Focused on Institutional Investors https://www.tokeninsight.com/en/latest/1416
- Zero-Knowledge Proof Developer StarkWare Raises New Funding Round at $6 Billion Valuation. That is a lot of MONEY💰. https://www.tokeninsight.com/en/latest/1432
- Goldman Sachs Explores Offering New Options for Cryptocurrencies. We always want to hear about news like this. https://www.tokeninsight.com/en/latest/1427
- Avalanche Foundation Unveils $290 Million Incentive Program. https://www.tokeninsight.com/en/latest/1388
- Immutable X Founding Company Immutable Closed $200 Million Funding Round Led by Temasek. https://www.tokeninsight.com/en/latest/1364
- Evmos Upgrade Failure Analysis Report: Core Team Upgrade Too Fast to Cause the Failure. https://www.tokeninsight.com/en/latest/1405
- Manchester City Announces Partnership with Crypto Exchange OKX. https://www.tokeninsight.com/en/latest/1335
What we (TokenInsight) are doing!
We are still BUILDing! 🙋🎉💪
Our App has been updated a while ago, and we welcome you to try it. We're currently working on the next version of the app, and the website is also being upgraded.
We have over 100 new projects online this week, but most of them are pretty bad, and a few of them are OK/of great quality.
So here's the question: how do we find these good projects?
Good question, we are working on a new version of the website that will add this feature. Let's start with a Priveiw:
Then other aspects can look at the daily news summary, support the English and Chinese versions both, open the page to switch languages to.
Finally, share a few projects that feel good texture
- Outer Ring
I didn't keep much of a good record this week, but I will keep a good record afterward and put up a few more. And, after that, only one acronym will be put up, and then you can go to TokenInsight's official website to search for the specific project and all other necessary information.
TokenInsight App download link: www.tokeninsight.com/download
I hope you have a great weekend.
Thanks for the help from Ryan and Hani.