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.
It was a week ending with a momentous, but short-lived “flippening”, as Ripple’s XRP currency temporarily stepped into second place on the cryptocurrency podium, overtaking the recently weakened Ethereum. XRP has been in the spotlight in recent days due to rumors flying about the possibility of a number of notable banks, most recently PNC Bank, actually using XRP rather than merely relying on Ripple’s other services such as XCurrent. The expectation that Xrapid, which relies on XRP, could be a utilised product within a month’s time has contributed to bullish sentiment, even with the current state of uncertainty. It seems that much of the market believes in the hopeful possibility that XRP may be seeing more legitimate usage in the near future.
The currency experienced a rally not seen during the recent doldrums of the overall bearish atmosphere and created a refreshing green wash over the rest of the market as exuberant traders experienced FOMO, observing XRP as it rushed skywards in rapid successions of price and volume increases. Beginning only four days ago, where it had remained steady at around 28 cents USD for some time, XRP spiked just past 72 cents before experiencing a sell-off that appears to have carried over into BTC and ETH, which both experienced price boosts in conjunction with XRP’s most recent cooling-off period.
Thus, the flippening was fleeting, as Ethereum saw a small revival, and at the time of this writing, has returned to its “rightful” place as the second largest market cap of the entire cryptocurrency market. In terms of trading volume, however, XRP is still attracting the attention of more traders than Ethereum and stands only behind Bitcoin in this regard.
Following suit, a few other notable recoveries have taken place over the past week. Cardano has enjoyed a strong week, leaving its bottomed out prices of the past depressingly bad week and continuing with a positive trend. Also mentioned last week as an upward-moving currency, WAX has seen a strong increase in activity and price. Stellar Lumens, a currency that is a close relative of XRP and tends to follow its movement, has also seen an excellent week of growth. A few other projects, such as Electroneum, Monacoin, and Funfair, which had been laying low for an extended period, also demonstrated startling growth over the past few days. Monacoin, in particular, is enjoying relatively high-volume trading and a nearly 60% surge in value just over the past 24 hours, despite being traded almost entirely in Japan on the Bitbank exchange.
On the other hand, Dogecoin finally took a rest after running counter to the market during what had been an otherwise-oppressively bearish period. Dropping nearly 10% over the past seven days, it seems like attention has strayed from the loveable project for the time being.
As a whole, the market is rallying at the moment, with considerable volume moving into a broad range of altcoins such as EOS, VeChain, and old favorites like Litecoin, Monero, and Bitcoin Cash, which had exhibited a bit of a slowdown in interest recently, perhaps due to some of the drama surrounding forking issues and broad disagreements in the BCH community over the future direction and vision of the coin.
Despite some negative news, the most recent being the SEC’s announcement of a further delay to the VanEck SolidX ETF, the market has remained optimistic for the time being. It seems that this delay is not having the negative effect some feared as it keeps the possibility of a future approval open. It is likely we will see a return of volume to Bitcoin as traders sell back into the dominant currency. It is equally likely the market will witness profit-taking during the weekend as traders seek to secure their gains in Tethers or USD.
On the positive side of the news, a recent study showed a lack of correlation between Tether printing and market fluctuations, allaying some fears regarding the possibility of manipulation via the controversial stable coin currency. The study by the business school of Australia’s university of Queensland argues that Tether “has had no meaningful impact on the price of bitcoin” (source). This may have contributed to an increase in confidence that saw prices climb earlier on Friday.
It seems that certain projects that have not been in the limelight for the past while might again see more activity as news and sentiment tend to cycle back to them. EOS, in particular, has been flying under the radar this past week despite positive movement in the last few days, and may see more activity soon. Genesis Vision — lost amidst the excitement of the XRP flippening — should continue to grow and gather attention as it approaches a major milestone, officially launching in October.
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.