Crypto Market: Reddit is Launching a New NFT Marketplace
Even though more crypto startups faltered due to the consequences of crypto contagion, enduring crypto platforms drove a market upswing this week. As Reddit teamed up with Polygon to create an NFT market and Ethereum successfully merged a new testnet, the volume of Bitcoin leaving exchanges continues to break records.
Top Market Trends of the Week
- The ongoing liquidation events include Voyager declaring bankruptcy, CoinLoan capping withdrawals at $500,000 to $5,000 per day, and Celsius referencing pre-bear fragility and “ponziness” in legal docs.
- Turkey’s Bitcoin trade volume increased 40% as the nation battles a 78% inflation rate.
- While Jason Fung, the former head of gaming at TikTok, will create a blockchain games startup, VC firm Konvoy has launched a fund for blockchain-based games called GameFi.
- Using Polygon’s Ethereum scaling solution, Reddit developed an NFT marketplace for avatars.
Top 7-day Gainers
- EVMOS +33.9%
- AAVE +23.0%
- RUNE +22.1%
- ATOM +21.8%
- MATIC +20.5%
Top 7-day Losers
- KCS -7.7%
- AMP -6.8%
- XAUT -5.0%
- PAXG -4.9%
- LTC -2.1%
Bitcoin’s Technical Summary
This week saw the closing of this year’s second financial quarter — typically a time to take stock. The price of Bitcoin (BTC) dropped from nearly $45,000 at the start of April to levels under $18,000 in this period, representing a sharp drop amid the macroeconomic uncertainty alongside the crypto market shakeout from the Terra collapse, 3AC bankruptcy, and the lending platforms crisis.
The largest cryptocurrency lost -56% of its value in the second quarter of 2022, its worst quarterly performance in more than 11 years, and the second-worst in history.
Q2 2022 was even harder for Ether and other altcoins, some of which suffered even more severe downfalls compared to the market leader: SOL (-72.8%), ETH (-67.8%), ADA (-60.4%), and XRP (-59.6%), while BNB (-50.6%) was able to outperform BTC throughout Q2.
Last week was also a harsh one for the crypto market. Bitcoin produced large price swings, posting a slight rebound on July 4, 2022, when it crept back above $20,000.
Bitcoin gave up most of those gains during the Asian trading hours on July 5 and plummeted below $19,400 at one point today before regaining ground at $21,700 at the time of writing.
The Crypto Fear & Greed index is now at 19, the highest level it has been since the Terra collapse in early May. However, there is still ‘Extreme Fear’ in the market, a sentiment probably fueled by the recession fears in the traditional financial markets.
Also in Crypto
Buy a Bored Ape Now and Pay Later
Teller is a Polygon-based decentralized lending protocol with a buy now, pay later feature for blue-chip NFTs. Ape Now, Pay Later will support 10 notable NFT projects at launch. Buyers will have to make a down payment of up to 50% of the NFT’s value. NFTs will be held in an escrow wallet and released if all payments are made on time.
US Bans Crypto Holders from Working on Government Policies
Employees of the United States government who work on digital asset laws and policies are not permitted to own cryptocurrencies.
The government’s Office of Government Ethics (OGE) has implemented new restrictions in response to what is effectively a conflict of interest. Stablecoins are one of the numerous aspects of the cryptocurrency industry that are regulated.
The notice reads:
“An employee who owns any amount of a cryptocurrency or stablecoin may not participate in a specific matter if the employee understands the matter will have a direct and predictable effect on the value of their cryptocurrency or stablecoins.”
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