A week does not go by in the world of cryptocurrency without some kind of drama. Examining the events of the past week and observing the trends of the crypto market, our weekly Market Wrap-up aims to keep you informed of the latest happenings in crypto, even if you’re not the type to peek at your Blockfolio on an hourly basis.
Suspicions surrounding Tethers and the possibility of insolvency failed to subside this week as the USD-pegged stablecoin has been experiencing an inventory drop of sorts, being sold and moved off the market in exchange for USD currency via exchanges such as Kraken and Bitfinex. Combined with the lack of transparency surrounding banking and audits, these large transfers of USDT funds have done little to allay the fears of traders to the possibility of a Tether failure that will likely continue to cause considerable anxiety in the market.
Mid-week, the big names of crypto like Bitcoin and Ethereum experienced a sudden spike in price due to a Tether dump that caused an influx of funds to move into the relative safety of Bitcoin, away from the uncertainty of the formerly stable USDT. The price did adjust back to relative normalcy after a few hours, but exhibited the fragility of the supposedly stable currency as it lost its peg to the US dollar due to heavy trading pressures. The launch of a number of other stablecoins may have also contributed to this drop as traders fled to the apparent safety of the alternatives that have sought to be more transparent and accountable to traders.
On another note, reports of the Ripple team talking with the Trump administration about the potential of XRP caused some bullish excitement among the XRP-faithful. Ripple presented XRP as a foil to Bitcoin, honing in on concerns surrounding China’s grip on Bitcoin mining and its general dominance of the global supply of Bitcoin and Ethereum. Although XRP has recovered slightly over the past week, the news seemed to have little effect on the price, having seen a considerable drop in volume and price over the past few weeks, following earlier anticipation building for the implementation of XRP among a few banks.
Among the top performers of the week, the ERC20 token, BAT (Basic Attention Token) saw excellent growth due to the Brave browser beta launch of its cryptocurrency capacities, which use BAT as a medium of exchange of value. Ravencoin, ramping up for the launch of its mainnet and issuance of assets on its network on October 31, experienced astounding price growth of more than 50% over the past seven days.
A Focus Fire favorite here at CryptoMurmur, Komodo has been on a tear over the past week as well, surging by more than 25% in price and climbing the ranks in popularity and volume. The platform has seen considerable strides made in market recognition, and particularly in certain Komodo-based projects, including the highly innovative “friendly-fork” Verus Coin and the “most privacy-focused coin”, Pirate Chain. And yet another Ethereum-based token, Genesis Vision, with its approaching launch on October 30, continues to build investment as the date approaches.
It will be interesting to see how much short-term excitement for approaching dates can carry over to longer-term value in these projects. Often, launches of this nature cause significant market dumps very soon after the launch date as excitement and anticipation fade and traders attempt to take profits to invest in the next big thing.
Dogecoin seems to finally be settling back down to reality, with the excitement of a Dogecoin-Ethereum bridge fading into distant memories. Another media favorite of the past few weeks, Electroneum has lost momentum and seems to be cooling off considerably. Bytecoin was unable to stop its steep slide and appears doomed to continue its descent into oblivion. It’s not looking good for this coin — the old adage, “buy the dip” likely does not apply here.
It should be noted that all of these observations are just that — observations I have made about the market over the past week. This is not professional financial advice and is intended only to act as a quick wrap-up of the week’s events for you to enjoy. Please do your own research before doing any investing and never risk more than you can afford to lose.