It was another strong week in the market for cryptocurrencies, with strong gains for large and mid-cap assets.
O bitcoin (BTC) it’s the ether (ETH), you two biggest assets in Brave New Coin (BNC) market capitalization table, rose 10% and 14%, respectively.
These gains were overshadowed by even stronger performances from large-cap assets, Cardano (ADA) and XRP, which grew 52% and 66%.
In June, the falls in the crypto market price, resulting from the “fear, uncertainty and doubt” (FUD) on the ban on crypto activities in China and Elon Musk’s environmental concerns are now in the past.
Bitcoin is a bit far from reaching a new record high. However, a new milestone is the capitalization of bitcoin, which hit a new record high last Friday (13).
View metric:https://t.co/C8JhD26mC1 pic.twitter.com/ohXnmFDkNk
— glassnode alerts (@glassnodealerts) August 14, 2021
According to the glassnode, realized capitalization (or “realized cap”) is an alternative measure to a traditional market capitalization (amount of outstanding assets) that assesses the value of an asset “stored” or “saved” in blockchain based on the price when the currency was last moved.
The capitalization carried out reached a new record high, that is, more money is being invested in bitcoin now than in April, when the price of cryptocurrency was $64,000.
This metric suggests that, since April, there has been a willingness by new buyers to buy bitcoin at higher price levels, despite negative market sentiment.
The network is more resilient than it was in May, the hash rate — the computational power used to mine new blocks — is going up steadily since early June and bitcoin miners are increasingly looking for solutions to manage environmental impact gives cryptocurrency mining.
The price of bitcoin and the cryptocurrency market continues to rise in August, despite a $600 million hack to one connection protocol between blockchains of the sector of decentralized finance (DeFi), the advance of a strict crypto regulation in a major infrastructure project in the United States and large fines paid to US regulators by crypto brokers Poloniex and BitMEX.
Last week, Cardano had become the third-largest cryptoactive on the market.
There was a positive feeling after confirming that autonomous contracts will be implemented in the network as part of the bifurcation drastic (or “hard fork”) Alonzo, whose release is scheduled for the day September 12th.
After years of waiting, the network will allow decentralized applications (dapps) are released using Plutus, the network’s unique and proprietary programming language.
the blockchain proof-of-stake (PoS) — which relies on user participation, not mining — will expand its usefulness and allow users to access DeFi industry applications from games it’s from non-fungible tokens (NFTs).
What’s next this week?
Aug 17: New Zealand central bank interest rate decision
New Zealand will become the first major country to raise the interest rate for mitigate the effects of the COVID-19 pandemic on the global economy.
The rise is expected as the country begins a normalization process and tries to contain concerns about inflation after aggressive monetary policies throughout 2020 and 2021 to help support the economy.
With an advanced economy in the Asia-Pacific region that started to thrive amid COVID-19, it will be important to watch for the signals sent to market participants around the world.
August 21: Reward Halving per Verge Block
Verge (XVG) is a privacy-focused blockchain formerly known as DogecoinDark. Next Saturday, the network will run a “halving”, reducing, from 100 to 50, the number of XVG tokens offered to miners as a reward per block.
Generally, a halving results in higher prices because a halving event decreases supply, creates shortages, and reduces sales pressure by miners. Last week, the price of XVG rose 58%.
Top 10 cryptoactives of the week
It was a strong trading week for the big cryptoactives in BNC capitalization table. Many had double-digit gains. XRP soared, rising more than 60%.
However, analysts warned about the asset’s trading. Technical trading indicators such as the Relative Strength Index (RSI) and Bollinger bands suggest that the asset is overbought.
There were concerns when a large amount of XRP has been moved to a brokerage because it suggests the intention to sell or liquidate.
Bitcoin price graph
Bitcoin markets had a strong midweek, with a spike above the $48,000 price level. Bitcoin continues its strong medium-term trend, rising 50% in the last month.
THE glassnode reported that investors are in accumulation mode as bitcoin exited brokerages in August at a rate of between $75,000 and $100,000 a month.
Historically, this pattern of bitcoin flow from brokers to private portfolios is positive, as it suggests that less bitcoin is being sold and more bitcoin is being stored.
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