Weekly recap: crypto market crashes to a 10-month low

Crypto market in numbers

The crypto market cap has hit its 10-month low. On 12th May 2022, it dropped to $1.1 trillion, according to CoinMarketCap. During the week, the market size decreased by 33%.

Market trading activity reached record highs over the past six months. Between 5th and 11th May, trading volumes stood at $915 billion, a 25% increase from the previous week. The average daily trading volume for this week rose to $131 billion.

The Cryptocurrency Fear & Greed Index has stood in the “Extreme Fear” zone all week long. The median value of the index for the week is 12 points. Such low values ​​have not been observed since January 2022.

Bitcoin dominance grew by almost 3% during the last two days, reaching 44.67%. Over the month, the market share of the first cryptocurrency increased by almost 4%. Over the past week, Ether’s price against bitcoin fell by almost 9%, XRP’s – by 20%, Cardano’s – by 24.5%, and Solana’s – by 31%. At the same time, BTC’s price against the USD dropped to its low in almost a year and a half – since the end of December 2020.

Gainers of the week (06th – 12th May 2022)

Losers of the week (06th – 12th May 2022)

Easily track gainers and losers within the Simple trade section on EXMO. Check real-time updates in the last 24 hours, week and month.

Segmentation of cryptocurrencies based on trading results
(06th – 12th May 2022)

Most traded coins (05th – 11th May 2022)

Top crypto market driving factors

Overall crypto market

▲▼ 05.05.2022 – The US Federal Reserve System (FRS) raised the base rate by 50 basis points – from 0.25-0.5% to 0.75-1% per annum. The US central bank will also begin reducing its balance sheet on 1st June 2022, starting with a cut of $47.5 billion a month, and rising to $95.

▼ 05.05.2022 – US congressmen voiced concerns about Fidelity Investments’ Bitcoin pension plan calling it “a risky and speculative gamble”. American lawmakers believe that adding bitcoin to their retirement saving plan menus carries risks associated with volatility.

▲ 05.05.2022 – LGT Bank, the financial institution owned by the princely House of Liechtenstein, offers cryptocurrency custody and brokerage services to private clients.

▲ 05.05.2022 – Vogue: luxury brand, Gucci, has announced that it will accept cryptocurrency payments at select U.S. locations by the end of May 2022. It will accept more than 10 currencies, which would include bitcoin, bitcoin cash, ethereum, wrapped bitcoin, litecoin, shiba inu and five stablecoins pegged to the US dollar.

▲ 06.05.2022 – Google’s cloud group forms a Web3 team to build tools that support blockchain application developers.

▲ 08.05.2022 – The algorithmic stablecoin of the Terra ecosystem, TerraUSD (UST), briefly lost its peg to the US dollar amid an outflow of assets from the Anchor protocol.

▼ 09.05.2022 – Bank Of America: Bitcoin is no longer a strong hedge against inflation.

▲ 09.05.2022 – CoinShares: between 2nd and 6th May 2022, digital asset investment products surprisingly saw inflows totaling $40 million, for the first time after four consecutive weeks of outflows totaling $339 million.

▲ 09.05.2022 – CoinShares: multi-asset funds recorded net inflows of $1.7 million over the past week. Since the beginning of the year, multi-asset funds saw outflows for only two weeks.

▲ 10.05.2022 – Digital assets formed about 35% of all AMC Theatres’ online payments during the first quarter of 2022.

▼ 10.05.2022 – The UST stablecoin lost its peg to the U.S. dollar again on 09th May 2022. The price of the asset fell as low as $0.62.

▼ 10.05.2022 – US Treasury Secretary, Janet Yellen, called for the need for stablecoin regulation law by the end of 2022.

▼ 10.05.2022 – Fed Stability Report: Stablecoins represent one of the risk areas for the financial system. The report authors put the issuers of such tokens on a par with banks. In addition to meeting capital and liquidity requirements, organisations will be supervised at the federal level.

▼ 11.05.2022 – The price of the UST stablecoin fell to $0.23, while the associated Terra’s native LUNA token lost about 98% of its value.

▼ 11.05.2022 – The European Commission is considering a tough approach concerning the ability of stablecoins to become widely used in place of fiat currency.

▼ 11.05.2022 – The Democrats of the U.S. Senate have proposed to tighten a regulatory framework for cryptocurrencies, including stablecoins.

▼ 11.05.2022 – On a yearly basis, inflation in the U.S. jumped 8.3% in April, falling from 8.5% in March but exceeding expectations calling for an increase of 8.1%.

▼ 12.05.2022 – Amid market turbulence, the USDT stablecoin price tested the $0.94 level. Paolo Ardoino, Tether’s chief technology officer, said that the company’s reserves are enough to ensure all its assets maintain a 1:1 USD peg.

Bitcoin (BTC)

▲ 06.05.2022 – Valkyrie’s Bitcoin futures ETF gets U.S. Securities and Exchange Commission’s (SEC) approval.

▲ 09.05.2022 – CoinShares: between 2nd and 6th May 2022, Bitcoin saw inflows totaling $45 million.

▼ 09.05.2022 – Glassnode: amid the fall of the crypto market, investors are increasing fees to speed up the withdrawal of bitcoin to exchanges.

▼ 10.05.2022 – CrуptoQuant: Bitcoin inflows to crypto exchanges hit a record high since May 2021 when BTC’s price dropped considerably.

▲ 10.05.2022 – El Salvador has acquired another 500 additional Bitcoins amid the market drop.

▲ 10.05.2022 – Townsquare Media, a New York-based digital marketing and radio station company, has added $5 million worth of Bitcoin (BTC) to its balance sheet.

▲ 10.05.2022 – Bitcoin (BTC) ETF from Cosmos Asset Management, plus BTC and Ether (ETH) spot ETFs from 21Shares are expected to begin trading on Cboe Australia on 12th May 2022.

▲ 11.05.2022 – On 11th May, as a result of another recalculation, Bitcoin’s mining difficulty hit another all-time high of 31.25 T, recording a 4.9% increase from the previous adjustment last month.

Ethereum (ETH)

▲ 06.05.2022 – Launchpad: the deposit contract for staking Ethereum (ETH) on the Beacon Chain now holds 10% of ether’s circulating supply.

▲ 08.05.2022 – Meta’s Instagram will support NFTs from Ethereum, Polygon, Solana and Flow.

▼ 09.05.2022 – CoinShares: between 2nd and 6th May 2022, Ethereum saw outflows totaling $12.5 million, bringing total year-to-date outflows to $207 million.

▲ 05.05.2022 – Chainlink is set to power the LaProp tokenised real estate platform serving the Latin American property market.

XRP (XRP)

▲ 09.05.2022 – Japanese used car exporting company, SBI Motor Japan, has announced that its African customers can now make payments for used cars using Bitcoin and XRP.

Solana (SOL)

▲ 05.05.2022 – Solana (SOL) plans to introduce a new fee system, in addition to a host of other improvements, as part of an effort to combat its repeated network issues.

▲ 08.05.2022 – Meta’s Instagram will support NFTs from Ethereum, Polygon, Solana and Flow.

▼ 09.05.2022 – CoinShares: Solana was the only altcoin to see any measurable inflows to its funds, which totaled $1.9 million over the past week. Also, Solana is the only altcoin to see inflows ($107 million) that are comparable to bitcoin and multi-asset funds. Other altcoins either recorded inflows below $10 or suffered outflows.

Cardano (ADA)

▲ 09.05.2022 – Santiment: whale addresses holding between 1 million to 10 million ADA have been heavily accumulating over the past weeks amid the signs of the bear market.

Dogecoin (DOGE)

▲ 05.05.2022 – Iconic American rapper and actor, Ice Cube, expressed support for Dogecoin in a Twitter exchange.

Shiba Inu (SHIB)

▲ 09.05.2022 – Shibburn: the number of Shiba Inu sent to the dead wallet increased by over 133% on 7th May 2022.

▲ 10.05.2022 – Shiba Inu blog: the SHI stablecoin is close to being finished, and testing will commence shortly. What’s more, SHIB is set to introduce the Shibarium Financial Ecosystem.

Tron (TRX)

▲ 05.05.2022 – New algorithmic stablecoin, USDD, officially went live on the Tron blockchain.

▲ 10.05.2022 – The Tron DAO Reserve announced it purchased TRON and BTC to back the algorithmic stablecoin USDD.

▲ 11.05.2022 – Justin Sun has warned that TRON and its algorithmic stablecoin could be the target of the attack similar to Terra and UST. CEO of Tron Foundation plans to allocate $2 billion to prevent USDD from losing its dollar peg.

EOS (EOS)

▲ 08.05.2022 – The head of the Bitcoin Foundation, Brock Pierce, claims that the situation he observes in the crypto market is similar to the “dot-com crisis at the turn of the 2000s. Therefore, he has diversified his portfolio into EOS and NFTs.

NEAR (NEAR)

▲ 10.05.2022 – NEAR Foundation has partnered with Kenya-based blockchain community, Sankore, to launch a regional hub that will build projects aimed at improving the local crypto industry.

Algorand (ALGO)

▲ 10.05.2022 – Algorand Foundation announced the launch of the International School on Algorand Smart Contracts.

▲ 10.05.2022 – Algorand developers have partnered with Hivemind Capital, an NYC-based crypto-focused investment firm, to acquire the first decentralised peer-to-peer network of its kind, Napster.

Chainlink (LINK)

▲ 05.05.2022 – Chainlink is set to power the LaProp tokenised real estate platform serving the Latin American property market.

Zcash (ZEC)

▲ 12.05.2022 – Zcash 5.0.0, which added support for NU5 activation, released on GitHub. NU5 is the largest network upgrade in the history of the project that launched the Orchard shielded payment protocol whilst utilising the Halo proving system. The upgrade will activate on 31st May 2022.

EXMO news

EXMO history NFT collection: charity sale to support Ukraine. On 24th February 2022, EXMO turned eight years old. For this occasion, we planned many festive activities but had to cancel them. On 24th February 2022, Russia invaded Ukraine, and there was no question of celebrating the occasion. Today, we’re reintroducing some of these activities for a charitable purpose.

EXMO has delisted HP (HeartBout Pay), HB (HeartBout) and ZAG (ZigZag). HP (HeartBout Pay), HB (HeartBout) and ZAG (ZigZag) trading, deposits and withdrawals are no longer available

USDT on Solana and Terra (LUNA) to be listed on EXMO. Soon, you will be able to trade USDT on Solana and Terra (LUNA) on EXMO.

That’s all for this week! Follow EXMO on YouTube, Twitter and Telegram to stay tuned to the main events and trends in the crypto market.