Weekly recap: the market reveals weak players

Crypto market in numbers

The crypto market cap stayed at around $900 billion for the past nine days. Over the weekend, there was a short-term drop below $800 billion, according to CoinMarketCap, but with the start of the new week, the indicator returned to the level observed before.

Trading activity decreased again after the previous week’s sell-off. Between 16th and 22nd June, trading volumes were about $514 billion, down 23% from the previous period. The average daily trading volume dropped to $73 billion from $95 billion a week earlier.

The Cryptocurrency Fear & Greed Index reached a three-year low. On 18th and 19th June, its value fell to 6 points. In the following days, the indicator gradually recovered to 11 points. The index has stayed in the “Extreme Fear” zone for 49 days.

Bitcoin’s dominance dropped by another 1% to 43% over the week. The market share of ether fluctuated mainly in the range of 14.6% – 15.2% during the week. Over the weekend, it dropped to 13.8%.

Bitcoin’s volatility continued to increase but at a slower rate. The 30-day volatility index rose by 0.38% to 4.74% over the week. At the same time, ether’s volatility growth keeps pace. The indicator for ETH rose by 0.93% to 6.00%.

Gainers of the week (17th – 23rd June 2022)

Losers of the week (17th – 23rd June 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
(17th – 23rd June 2022)

Most traded coins (16th – 22nd June 2022)

Top crypto market driving factors

Overall crypto market

▼ 17.06.2022 – The Wall Street Journal: Celsius investors are unlikely to provide more funds to bail out the struggling crypto lender.

▼ 17.06.2022 – Five U.S. state securities commissions have “as a matter of priority” begun investigating the suspension of crypto lending platform Celsius’ withdrawals by customers.

▼ 17.06.2022 – The Block: three crypto exchanges have liquidated Three Arrows Capital’s positions after the crypto hedge fund known as 3AC failed to meet margin calls.

▼ 17.06.2022 – Michael Moreau, CEO of the Genesis Trading cryptocurrency OTC platform, announced the liquidation of a “major counterparty” position. He did not reveal the name of the company, but users suggested he was referring to the Three Arrows Capital (3AC) hedge fund.

▼ 17.06.2022 – Three Arrows Capital (3AC) is exploring the possibility of selling assets and seeking “financial assistance” from other companies, as well as trying to negotiate with creditors to defer payments.

▼ 17.06.2022 – Babel Finance, one of the largest cryptocurrency lenders and asset managers in the Asian region, temporarily suspended asset redemptions and withdrawals due to unusual liquidity pressures.

▼ 19.06.2022 – Tether CTO, Paolo Ardoino, confirmed that the Tether website, tether.io, suffered a DDOS attack.

▼ 19.06.2022 – Authorities in Iran will reportedly cut off electricity to all legal crypto miners.

▼ 20.06.2022 – Crypto reporter Colin Wu: an anonymous source revealed that Three Arrows Capital has over 2 billion gross debt and only 200 million liquid assets.

▼ 20.06.2022 – CoinShares: between 13th and 17th June, digital asset investment products saw outflows totaling $39 million. Total assets under management (AuM) are now at their lowest point since February 2021 at $36 billion – a 59% decrease. Despite the recent negative sentiment, year-to-date inflows remain positive at $403 million.

▲▼ 20.06.2022 – CoinShares: there is a significant regional polarisation of investor views, with last weeks’ outflows observed almost solely from Canadian ($141 million) and Swedish exchanges ($8 million), while US, European, Brazilian and the exchanges of other countries saw inflows totaling $111 million.

▲ 20.06.2022 – CoinShares: between 13th and 17th June, multi-asset investment products, the most resilient in terms of inflows this year, saw inflows totaling $9 million last week.

▲ 20.06.2022 – Babel Finance said it reached “preliminary agreements” with major counterparties “on the repayment period of some debts.”

▲ 20.06.2022 – JPMorgan: the share of all stablecoins rose to above 14%, or a “new historical high, which is well above its trend since 2020.” Analysts believe excessively high figures point to oversold conditions and a significant upside for crypto markets from here on.

▲ 21.06.2022 – Voyager Digital will borrow $500 million from Alameda Research amid the industry downturn.

▼ 21.06.2022 – Chinese messenger, WeChat, will ban public accounts from providing secondary trading services for NFTs.

▲ 21.06.2022 – Crypto lender BlockFi has secured a $250 million revolving line of credit from crypto exchange FTX.

▲ 22.06.2022 – The financial conglomerate, Citigroup, has partnered with the infrastructure company, Metaco, to launch a platform for the storage and management of digital assets.

▼ 22.06.2022 – Voyager Digital may issue a notice of default to Three Arrows as the platform’s exposure to 3AC consists of 15,250 BTC ($312 million) and 350 million USDC.

▲ 22.06.2022 – The Governor of Louisiana, John Bel Edwards, signed a bill, allowing financial institutions to take custody of Bitcoin and other cryptocurrencies.

Bitcoin (BTC)

▼ 17.06.2022 – NYDIG: public miners sold a net of 4,411 bitcoins in May 2022, considerably more than the previous average of 1,115 bitcoins per month, earlier in 2022.

▼ 18.06.2022 – Bitcoin’s price-related hashrate has dropped 10.25% from its peak of 234 EH/s on 14th June.

▼ 20.06.2022 – Starting on 21st June, ProShares’ Short Bitcoin Strategy ETF will be available for trading on the New York Stock Exchange. The ETF will allow U.S. investors to bet against BTC using futures contracts.

▲ 20.06.2022 – Marathon Digital Holdings will continue working to accumulate the first cryptocurrency despite BTC’s price slump.

▲ 20.06.2022 – CoinShares: between 13th and 17th June, Bitcoin saw inflows totaling $28 million.

▼ 20.06.2022 – Glassnode: the Bitcoin market reeled from a massive deleveraging and liquidation event as its price kept falling below the 2017 $20,000 ATH. Last week, the number of BTC owned by holders decreased at a rate of 20,000 BTC to 36,000 BTC per day. Bitcoin miners’ income fell by 61% below the annual average.

▲ 20.06.2022 – Glassnode: as Bitcoin’s price keeps falling after breaching the 2017 high, miners switched to BTC accumulation at a rate of 2,200 BTC per month.

▼ 20.06.2022 – Glassnode: Purpose Bitcoin ETF’s holdings dropped by 51% to 23,307 BTC between 16th and 17th June, its lowest level since October 2021. Another Canadian crypto fund, dubbed 3iQ CoinShares Bitcoin ETF, witnessed similar outflows, dropping from 23,917 BTC on 01st June to 12,668 BTC on 17th June.

▼ 21.06.2022 – Arcane Research: in the first four months of 2022, public BTC mining firms sold 30% of their mined production. However, a sharp drop in BTC mining profitability in May forced them to sell 100% of all BTC mined. Conditions have worsened in June, which is why the figure is expected to rise even further.

▼ 21.06.2022 – Arcane Research: Canadian crypto mining firm, Bitfarms, sold roughly $62 million worth of Bitcoin (BTC) in June, roughly half of its BTC holdings. The funds from the BTC sales will be used to increase liquidity and reduce the company’s BTC-backed credit facility with Galaxy Digital.

Ethereum (ETH)

▼ 17.06.2022 – Dune Analytics: the total value of assets in the Curve protocol’s ETH/stETH liquidity pool has dropped to around $620 million from $4.5 billion in early May. The reason behind the drop of more than seven times is mainly due to the liquidation of stETH positions by large crypto investors such as Alameda and Three Arrows Capital.

▼ 17.06.2022 – A report from the Bank for International Settlements (BIS): Ethereum-miners abused the ability to choose which transactions they add to the ledger and their order.Simply put, they engaged in front-running – a common malpractice in the crypto mining industry. They have accumulated around $600 million since 2020.

▼ 19.06.2022 – The Block analyst, Larry Cheramak: the balances of more than 100 ETH addresses belonging to crypto funds have decreased by 86% since March 2022 – from $14.8 billion to $2 billion.

▼ 20.06.2022 – CoinShares: Ethereum suffered eleven straight weeks of outflows. between 13th and 17th June, they totaled $70 million.

▼ 20.06.2022 – Kaiko: Ethereum has been hit harder than Bitcoin by market volatility and by the Celsius debacle, which led to the plummeting of Ethereum perpetual futures open interest to -0.02%.

▲ 21.06.2022 – Ethereum testnet, Beacon Chain, is launched and ready for a trial merge.

Cardano (ADA)

▲ 17.06.2022 – On 23rd June 2022, Cardano founder, Charles Hoskinson, will address the US House of Representatives Committee on Agriculture about blockchain and cryptocurrencies.

▼ 21.06.2022 – Cardano developers postponed the anticipated Vasil hardfork to late July.

XRP (XRP)

▲ 17.06.2022 – Ripple has partnered with the NFT collectibles ecosystem, FLUF World, to launch Open Metaverse which will run on the decentralised Root Network.

Solana (SOL)

▲ 17.06.2022 – Solana co-founder, Anatoly Yakovenko: Solana’s new fee prioritisation model won’t punish users with high fees across the entire network.

▼ 18.06.2022 – Founder of the Solend lending platform under the nickname Rooter: one whale has a massive position of $170 million worth of SOL along with $108 million worth of USDC borrowed. However, if SOL’s price sinks below $22.30, 20% of the account’s collateral is at risk of being liquidated, which may lead to a cascading decline in the price of an asset and endanger other participants of the platform.

▼ 19.06.2022 – The Solend community has accepted the proposal of the development team to enact special margin requirements for large whales. The whale mentioned above was given a grace period to reduce leverage.

▲ 20.06.2022 – As a result of a new vote, the Solend community cancelled the previous decision to control the account of a large position holder.

▲ 21.06.2022 – Solend Protocol introduces a $50 million borrowing limit per-account and has reduced maximum liquidation to avoid a liquidity crisis.

▲ 21.06.2022 – Solana-based NFT marketplace, Magic Eden, has raised $130 million in a Series B funding round and is now valued at $1.6 billion.

Dogecoin (DOGE)

▲ 17.06.2022 – The Dogecoin team announced that the testnet version of the new utility-focused Dogechain offshoot is now open for developers.

▲ 19.06.2022 – Elon Musk said he would support Dogecoin despite the $258 billion class action. In response to a user, he also revealed that he has not ceased buying the meme coin.

▲ 21.06.2022 – Tesla and SpaceX CEO, Elon Musk, reiterated his support for meme coin cryptocurrency Dogecoin, in a Bloomberg interview. He emphasised that he never forced people to invest in the cryptocurrency he likes.

▼ 21.06.2022 – Blockchain analytics firm, Elliptic, has identified millions of dollars worth of Dogecoin transactions connected to illicit activity.

Tron (TRX)

▼ 20.06.2022 – CoinShares: between 13th and 17th June, Tron saw outflows of almost $1 million.

Uniswap (UNI)

▲ 22.06.2022 – Uniswap Labs announced it has acquired NFT marketplace aggregator, Genie.

Cosmos (ATOM)

▲ 23.06.2022 – Crypto derivatives platform, dYdX, moves to a standalone blockchain based on the Cosmos SDK.

Toncoin (TON)

▲ 16.06.2022 – The Toncoin team announced the first-ever Hack-a-TON, with a total prize fund of 40,000 TON!

EXMO news

Ethereum’s network upgrade: ETH deposits and withdrawals temporarily unavailable. EXMO supports Ethereum’s Gray Glacier network upgrade scheduled for 29th June 2022.

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.