Home Business This Week in Pieces: Ethereum and Avalanche Rally, Crypto Winter Still Not Over

This Week in Pieces: Ethereum and Avalanche Rally, Crypto Winter Still Not Over

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This Week in Pieces: Ethereum and Avalanche Rally, Crypto Winter Still Not Over
This week in parts. Illustration by Mitchell Preffer for Decrypt.

Despite the ongoing crypto bear market, many top cryptocurrencies saw double-digit percentage gains over the week.

Bitcoin was not so lucky. Bitcoin has only risen 5.5% in the past seven days and is currently trading for $24,460 according to CoinMarketCap.

Ethereum rallied much stronger. The #2 cryptocurrency and leading blockchain for high-functionality smart contracts is up 16% in the past week to $1,984 at the time of writing, after peaking at $2,012 late friday night.

The excitement around ETH is all about the upcoming mergerwhen Ethereum will switch to a more energy-efficient solution proof of stake (PoS) blockchain. Goerli, the third and final Ethereum testnet, has successfully switched Wednesday evening.

On Monday, data from Glassnode revealed that Ethereum derivatives traders are “extremely bullishfor September, the month of the merger, but will turn bearish by October.

During Coinbase’s latest earnings call, the company reiterated its focus on staking as part of its business model leading up to the merger. A recent letter to shareholders states: “In early August, we started offering Ethereum staking for first-time institutional clients. We will continue to add more assets to stake for our retail and institutional clients in the future. »

Bitcoin and Ethereum course reacted positively at this month’s inflation reading of the consumer price index (CPI) on Wednesday. Inflation remains unchanged from last month at 8.5%, a clear sign that the US Federal Reserve historic interest rate hikes this year are keeping prices under control.

How altcoins fared

Several so-calledEthereum Killers“, aka layer 1 blockchains with high-functionality smart contracts, posted big rallies: Avalanche (AVAX) exploded 55% during the week, until it gave up much of its gains on Friday night as ETH rose momentum was thanks to the strong growth of NFTs on the blockchain. As of Saturday morning, AVAX had risen only 15% in the past 7 days and was trading at $29.53.

Other Ethereum rivals that rose over the seven days: Solana (SOL) rose 14% to $46.32; The NEAR protocol jumped 18% to $5.89 and FLOW rose 11% to $2.92.

Additionally, Chainlink (LINK) rose 15.4% to $9.16, and Ethereum Classic (ETC) – which hit a four months high this week – is up 16% to $44.25.

There were no major losses among the main coins.

Bear Market News

The crypto winter chill has shown few signs of slowing down this week.

On Monday, Singaporean stock exchange Hodlnaut joined other lenders Vault and Celsius and Singaporean exchange Zipmex on the list of crypto companies that have suspended customer withdrawals due to “recent market conditions.”

Earlier this year, Hodlnaut received approval in principle (IPA) of the Monetary Authority of Singapore (MAS) “to provide Digital Payment Token (DPT) services as a major payment institution”. The lender has now reportedly informed the Monetary Authority of Singapore (MAS) that it is withdrawing its license application and therefore no longer providing its token exchange function.

On Tuesday, German crypto bank Nuri filed for insolvency, saying the move was “necessary to ensure the safest path for all our customers.” Despite the procedure, Nuri said clients still had “guaranteed access” to their euro accounts and crypto wallets.

The bank said the measures were due to “significant macroeconomic headwinds”, in particular the pandemic and the war of Russia against Ukraine, as well as “various negative developments” in the industry “including the massive sales of cryptocurrency, the implosion of the Luna/Terra protocol, the insolvency of Celsius and other major Crypto funds”.

On Tuesday, Zipmex announced that it was release of withdrawals for Bitcoin and Ethereum. Users can withdraw Bitcoin since Friday; Ethereum holders will have to wait until next Tuesday, August 15.

Finally, during a hearing in Celsius’ Chapter 11 bankruptcy proceedings on Friday, lawyers representing a committee of unsecured creditors decided to block Celsius’ attempts to sell its mined cryptocurrency. The lawyers written in a court file that they first need more information on how the sale of Celsius Bitcoin mining will be carried out and how the sale proceeds will be used.

Celsius Mining is the Bitcoin mining subsidiary of Celsius Network. On July 14, a day after the parent company filed for bankruptcy, the mining operation also filed for bankruptcy.

Celsius has previously said it will use its mining operation to pay off creditors. At the start of bankruptcy proceedings in July, Celsius received approval to spend $5 million to restart its mining operation, a move that drew criticism from the US Department of Justice and now the creditors’ committee.

The committee also said it was launching a “wide-ranging investigation” and planned to invoke the 2004 bankruptcy rule.

All in all, a good week for crypto, but not so good for a few crypto companies.

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