Crypto Market: Venture Capitalists Continue to Fund the Metaverse
In order to avoid inflation-weary equities and take advantage of more advantageous investment opportunities, venture capitalists and investors are supporting early-stage Metaverse and Web3 projects.
While everything was going on, Bitcoin’s volatility persisted, and the buzz surrounding the Ethereum merger accelerated. $AAVE, $UNI, $COMP, and $SUSHI, common DeFi tokens, rose this week after enduring two solid months of “thinning” following the Terra ecosystem’s collapse in early May, which began a domino effect of liquidation.
Top Market Trends of the Week
- The native, decentralized, collateral-backed stablecoin $GHO, pegged to USD, will be released according to the Aave Liquidity Protocol.
- Dunamu, an Upbit supporter, is spending $380 million and creating 10,000 employment in Web3 startups.
- For investments in early-stage Web3 infrastructure, DAOs, and creative monetization, VC Multicoin raised $430 million. Ethereum, FTX, and Solana were a few of their earlier investments.
- Disney chose Polygon and four other startups for its Accelerator program, which focuses on developing NFTs, AR, and AI.
Top 7-day Gainers
- QNT +65.8%
- LDO +59.1%
- AAVE +28.3%
- MATIC +23.1%
- UNI +20.6%
Top 7-day Losers
- 10SET -19.7%
- EVMOS -18.0%
- BAT -12.7%
- USTC -11.8%
- DOGE -10.6%
Bitcoin’s Technical Summary
This past week brought a highly needed relief bounce to the crypto market, at least for a few days. Over the last week, Bitcoin (BTC) briefly reclaimed the $22k level for the first time since mid-June. The last time Bitcoin was over $22,000 was June. 16.
On its way to recovery from the recent sell-off, Bitcoin tested the $22,480 level on July 8, but buying power was not enough for Bitcoin to break out of the consolidation range.
Sequel to its failed attempt to climb above the $22,500 threshold, Bitcoin dropped back during the weekend. The largest cryptocurrency continued to plunge at the start of the new week to reverse the recent gains and finally dipped below $20,000 at the time of writing. Investors and analysts seem to care about this after weeks of losing and reclaiming this psychological level.
The Crypto Fear&Greed index rose to 15 on July 15, reaching the highest level since the Terra crash started at the beginning of May. The index then slipped below 20 again as the crypto market turned red on July 12.
Given that BTC is trading in an upward channel, the fact that the 20MA of the cryptocurrency passed above the 200MA could be bullish in the near future.
We are a long way from a Golden Cross on the Bitcoin macro (when the 50 EMA crosses over the 200 EMA).
We are currently in the grip of a bear market. It will either take significant price increases or some time before we get out of it.
Altcoin’s Technical Summary
Up until a brief uptick on Thursday night, cryptocurrency markets were generally going downward. Over the course of 7 days, DeFi protocols that made it through the 2022 shakeout led the gainers, with $AAVE, $UNI, $COMP, $CURVE DAO, and $SUSHI leading the pack.
In other altcoins:
- STEPN reported that platform fees generated earnings of $122.5 million in the second quarter.
- The largest US chain of movie theatres, AMC, now accepts Dogecoin (DOGE) payments.
- As developers continue to test the EVM’s shift to a PoS blockchain with success, Ethereum’s conversion to that platform is starting to feel more real.
I hope you found this crypto market update useful!
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