Bitcoin and altcoins took a hit, but derivatives data reflects a calmer market

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Looking at the winners and losers in the past week, it clearly shows traders weathered the heatwave as the total cryptocurrency market capitalization fell 12.7% as Bitcoin fell to $ 41,000. On December 3, $ 92 trillion was liquidated and $ 2 billion worth of futures contracts were liquidated.

Winners and losers among the top 80 coins. Source: Nomex
The price of Bitcoin (BTC) has dropped 14.6% over the past week, effectively lagging behind the broader altcoin market. Part of this unusual movement can be attributed to the performance of decentralized applications, which performed better than most of the market. Data shows Ether (ETH) fell 6.0%, Binance Coin (BNB) fell 7.3% and Solana (SOL) fell 7.8%.

The winners this week are OKB (OKB) token from OKB and UNUS (LEO) Bitfinex. They may have benefited from the lack of unity in the United States as regulatory uncertainty increases in the region. Additionally, Polygon (MATIC) and Algorand (ALGO) scaling solutions benefit from Ethereum network transaction fees of $ 40 or higher.

Terra (LUNA) took off last week after the built-in token burner significantly reduced the width. Meanwhile, stacks (STX), formerly known as Blockstacks, were pumped up after the D’Cent wallet enabled support for SIP010 tokens.

Sharing solutions has been a disappointing week
Among the worst performing are three decentralized sharing solutions: Theta Network (THETA), Filecoin (FILE), and Internet Computer (ICP). They were not alone as some cryptocurrencies also hit sectors in the early 1980s. Siacoin (S.A.) shares fell.

Chile (CHZ) faced direct competition after Binance successfully launched an independent soccer fan token called SANTOS. The Chiliz platform was originally created to host exclusive campaigns, services and vote for their ghosts, and more recently, the project has entered the non-fungible NFT market. However, this initiative also lost its strength after the footballer Neymar began his career at NFTStar.

While the 1-inch (1-inch) decentralized exchange aggregation network is one of the best, it has completed a $ 175 million Series B investment round and the funds will be used to expand the benefits of the protocol.

Tether premiums and perpetual futures in good shape
The OKEx Tether (USDT) premium, which measures the difference between China’s peer-to-peer trading (P2P) and the official US dollar, has declined slightly over the past week.

OKEx USDT peer-to-peer premium against the US dollar. Source: OKEx
At the moment, the index is at 98%, which is slightly bearish, indicating weak demand from cryptocurrency traders to convert cash to stablecoins. Even at the best time in the past two months, it was unable to overcome 99%, so the Chinese players were not enthusiastic about the market as a whole.

The overall effect of the correction last week was a decline in the total open interest rate on futures contracts, which fell 28% to $ 16.7 billion. However, the move was expected as the total market cap and liquidation fell by about $ 3.9 billion over the week.

More importantly, Bitcoin and Ethereum futures funding rates rebounded quickly after the December 3 price crash. Although long positions (buyers) and short positions (sellers) are always identical in any futures contract, their impact is different.

Thus, in order to balance the risks, exchanges will require the funding rate for the side using the higher leverage, and this commission is paid to the other side.

8 hour funding rates for BTC and ETH futures contracts. Source: Coinglass.com
The data shows that a moderate downtrend occurred on December 3 and 4, when the 8-hour funding rate fell below zero. A negative funding rate shows that short positions (sellers) were paying a commission, but the move disappeared when Bitcoin and Ethereum prices jumped 15% from their lows.

The data above may not sound encouraging, but given that Bitcoin suffered significant losses this week, the overall market structure remained good. If things were worse, one would hardly expect a 99% Tether premium or a positive perpetual funding rate.

Source: CoinTelegraph

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