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Highlights of this week:
– Cryptocurrencies in recovery mode
– Bitcoin struggles to recover
– Ethereum showing more strength
– ADA on Bitpanda Pro
– DOT: new update
– BEST still among the best cryptos since the start of the year
Cryptocurrencies in recovery mode
During the first week of June, the cryptocurrency market was still recovering from the correction in May. Most cryptocurrencies moved in a varying market, where the price hovered between higher and lower prices. This is a common occurrence after the massive sell-offs as prices seek new areas of support. The last few days, however, have succumbed to further downward pressure as Bitcoin lost ground and dragged altcoins with it. At the time of writing, Bitcoin was falling to levels not seen since the initial correction in May.
Bitcoin struggles to recover
Diving deep into BTC market corrections, the -49% drop in May marked the 6th largest such event, which could be considered one of the worst monthly corrections in history. However, corrections of this magnitude are common and should be expected. BTC ended the month down 35% and is still struggling to find a support area. BTC is trading at around € 26,000, a level last seen in January, and is up around 12% since the start of the year.
With price down nearly 50% from its all-time high, some bullish news suggests BTC is approaching a low. Crypto exchanges recorded a net outflow of 22,550 BTC on Monday, the biggest one-day net withdrawal since last November. The number of BTCs held in exchange wallets fell to a three-week low of 2.54 million, from 2.56 million. BTC exits from exchanges usually mean that traders can move their coins to wallets, safekeeping solutions, or cold rooms, but have no intention of trading them in a short period of time, but they rather plan to keep them longer. period.
Ethereum showing more strength
Bitcoin is still the coin with the lowest volatility, but some altcoins have shown their strength in weak markets. Even though they are mostly correlated, both Bitcoin and Ethereum have lost ground in recent corrections. While ETH dipped a bit more than BTC, it also recovered faster. The ETH / BTC exchange rate jumped around 40% after hitting 0.055 BTC in mid-May. However, it should also be noted that the exchange rate was around 0.023 at the start of the year. Ethereum tends to outperform BTC when the market is rising, but it also leans towards larger declines during a correction. Currently, ETH is trading at over € 2,000, still up around 250% for the year to date.
A major network upgrade is expected on the Ethereum blockchain in July, as the project prepares for Improvement proposal 1559. The update is expected to resolve Ethereum’s high transaction fees. It would do this by replacing Ethereum’s “first-price auction” royalty model with a backbone network fee that fluctuates based on network demand. The new update also offers to burn transaction fees, introducing deflation into the Ethereum ecosystem.
ADA on Bitpanda Pro
ADA, the native cryptocurrency of the Cardano blockchain, is currently ranked as the fifth largest cryptocurrency by market cap and is one of the top performing assets as it is up around 800% for the year to date (YTD). The surrounding bullish price action is mostly fueled by the upcoming smart contract rollout plan, called Alonzo. The series of color-coded test arrays will begin with Alonzo Blue and end with Alonzo Purple. It is expected to end around September 2021, according to Cardano’s development update. Alonzo will bring smart contract functionality to the blockchain and enable the deployment of a wide range of decentralized financial applications for the first time. Cardano currently has over 2,500 active pools, and around $ 30 billion is currently at stake in ADA, which is the largest among all crypto assets. ADA is a new trading pair on Bitpanda Pro, which is currently trading around € 1.30.
DOT: new update
DOT, the native token of the Polkadot ecosystem, saw a correction of over 70% during the month from its all-time high. The price is slowly recovering from this drop and is currently trading at around € 18, a level last seen during the May and February correction. Polkadot recently released a few significant upgrades including Polkadot version 0.9 which includes the ability to deploy parachains over the network and logic to run slot auctions and equity loans. The update means that Polkadot’s parallel channel, Kusama (KSM), can also host Parachains and Polkadot Parachain auctions. Parachains which are sold as slots are among the most important aspects of Polkadot and can be used for various purposes such as private channels, smart contract chains, and high frequency trading.
BEST among the best cryptos since the start of the year
BEST is holding above the 200 day moving average indicating that the long term trend is still in place. Despite the recent price correction, BEST has found support above € 1 and is up approximately 1,200% for the year.
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