Cryptocurrency failed to break out of the 42-day downward trend after rejecting the $ 1.95 trillion resistance on March 20.
The cumulative capitalization of the cryptocurrency markets showed an increase of 6.2% to reach $ 1.92 trillion between March 14 and 21. These indices were positively affected by ether growth (ETH) at 14%, Cardano (ADA) at 13%, and Solana (SOL)). ) by 10%.
Total market value of cryptocurrencies, billions of US dollars. Source: Trading View
Although these assets were not the largest weekly gains among the 80 best coins, Ethereum may have increased investor expectations after data from the network’s Glassnode showed that ETH balances on crypto exchanges reached their lowest level since 2018.
The comparison between winners and losers is skewed as only two names have shown negative results in the last seven days:
Weekly winners and losers among the 80 best coins. Source: Nomex
Ethereum Classic (ETC) rose 51% after the total value of the decentralized exchange, HebeSwap, closed app exceeded $ 290 million. As the protocol’s liquidity pools grow, it appears that Ethereum Classic has its own decentralized financial position.
Aave added 35% after updating its v3 liquidity pool on March 16, adding cross-chain functionality, a community contribution tool and a gas optimization model. Several wallet-based dapps will be integrated, including Instadapp, DeBank, 1-inch, ParaSwap, Zapper, DeFi Saver, Zerion and more.
Kusama (KSM) received 31% after Parity Technology confirmed that the upcoming release 0.9.18 will allow the exchange of parachin (side chain). In addition, the Manta Network Dolphin Testnet’s online privacy test reached 30,000 transactions on March 14.
The marked rope shows some irritation
The premium of OKX Tether (USDT) is a good indicator of the demand for cryptocurrency among retailers in China. It measures the difference between peer-to-peer transactions in China and the US dollar.
Excessive buying tends to put pressure on the index above the fair value of 100%, and during bear markets, Tether’s supply flows into the market, resulting in a discount of 4% or more.
Tether (USDT) P2P vs. USD / CNY. Source: OKH
Tether’s premium is currently 99.9%, the lowest since March 3. Despite the fact that the index is far from panicking in retail sales, the index showed a slight deterioration in the last week.
However, the weak retail demand is not a concern because it partly reflects the total capitalization of cryptocurrencies, which has fallen by 46% since the beginning of the year.
Related: “No more 4-year cycles” – 5 things to know about Bitcoin this week
Futures markets show mixed sentiment
Perpetual contracts, also known as reverse swaps, have a built-in rate, usually charged every eight hours. Stock exchanges use these fees to avoid imbalances in currency risk.
A positive financing rate indicates that long positions (buyers) require more influence. However, the opposite happens when short positions (sellers) require additional influence, which leads to the financing rate being negative.
Cumulative financing rate for perpetual futures March 21 Source: Coinglass.
As shown above, the seven-day cumulative financing rate is slightly positive for Bitcoin and Ether. These data indicate a small increase in demand from long positions (buyers), but it is insignificant. For example, Solana’s positive rate of 0.20% per week equals 0.8% per month, which should not bother most futures traders.
On the other hand, Terra (LUNA) and Polkadot (DOT) contracts showed a slight increase in demand from short positions (sellers). Thus, the lack of demand for Tether in Asia and the mixed premiums on perpetual contracts indicate a lack of confidence among traders, despite the recent price increase.