Crypto Markets Go for Brief Flash Recovery
After an eight-week streak of losses, Bitcoin (BTC) tried to regain the $30,500 level, with multiple setbacks. The leading coin broke to $30,416.75 late on Monday, after ending the week just under $30K. That rally did not hold far, and BTC returned to $29,380.81, though still showing the price can attempt to regain previous levels above $30,000.
BTC still trades in a region that may invite accumulation, while possibly extending gains up to $35,000 and breaking the downward trend at lest in the short term. BTC is still expected to revisit previous lows under $30,000, and trading sentiment remains extremely fearful.
BTC remains more unstable, with the volatility index rising to 4.18% in the past month. In the course of a day, BTC also moved by hundreds of dollars, at one point threatening to go below $30K again.
Transactions also slowed down both in number and total value, leaving both the market and the network stagnant.
BTC still logs year-on-year losses, this time not repeating the peak price action from May 2021. BTC hovered around $37,000 12 months ago, but this time there are few factors to promise a new rally.
Tether (USDT) further dropped its supply and is now down 10B tokens from the peak, showing an exodus of funds. USDT is still at $0.99, while BTC trades with a slight premium on Binance, in the BTC/BUSD pair.
Top 10 Coins Reshuffle
The top 10 of coins has proven to be an unstable place, with most assets moving in and out of that list. Based on market capitalization, the top 10 actually gives exposure to tokens with a deliberately high supply. This is the reason XRP is a fixture of the top 10 of coins and tokens, as well as projects like Cardano (ADA).
Previously hot assets like Avalanche (AVAX) are now out of the top 10 list. LUNA has already disappeared, still trying to reinstate a more predictable market price.
TRON Grows USDD Supply
TRON is one of the networks with a high supply of TRX. The token moved ahead of Shiba Inu (SHIB), trading at $0.076. TRX has remained relatively unchanged after the launch and expansion of USDD, a new stablecoin reported to be backed by multiple assets.
USDD has now raised its supply to above 500M tokens, adding about 200M new tokens per day. There are already DeFi deposits for passive income, promising returns as high as 30% annualized. This outsized return raises some issues with risk, which cannot be completely covered with a growing TRX price.
TRX is one of the assets that has not rallied even close to $0.50 or $1, despite expectations that this would be a fair range for the token. Instead, TRX remained with a low per-unit price. Now, TRX will have to show its potential with the addition of a new stablecoin.
The biggest risk for TRON is suspicions that its TRON DAO repeats the model of Terra and may unravel if investors lose trust.
Ethereum Classic Has Flash Rally
Ethereum Classic (ETC) had the strongest recovery, adding more than 15% to its price in a day. The asset was at $23.80, with expectations of closing in on $27.
ETC has outperformed in the past, rallying when seen as a substitute to Ethereum. This time, the problem with ETH 2.0 may drive builders and some investors back to Ethereum Classic.
There is still no clear scenario for ETC, but one of the expectations is that the network may attract Ethereum miners if they become obsolete.
The actual removal of ETH mining has been proposed for years, and may not happen as expected. In the short term, however, it is a factor boosting the price of ETC.
Altcoins often rally by more than 10% even after bearish periods, and this does not guarantee a steady recovery.
Will LUNA Have a Second Chance
Several factors moved the price of any vestigial LUNA trading. For one, owners decided to burn their LUNA in hope of recovering the price and reviving the project. There is no statement from Do Kwon to ensure that burning tokens will have an effect on market prices or token utility.
LUNA holders are risking losing their tokens in the burn, with the small hope of recovery for the remaining holdings. The burning is entirely voluntary, and some believe it is also unnecessary. LUNA trades at $0.000183, often rallying by 50-70% in hours, but crashing just as fast.
Do Kwon also warned that the burn address is not a guarantee of recovering LUNA prices.
UST, the derivative token that was supposed to have a value of $1, is also unstable, moving between $0.05 and $0.07 within hours. The asset may be delisted soon from most exchanges. The voting is still open on eventually relaunching Terra with LUNA 2.0 and no UST asset.
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