Total crypto market cap drops by 6.7%, but futures data finds a silver lining

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Looking at the last 7 days of winners and losers, one can get the impression that the cryptocurrency markets are net positive. Still, the total market cap actually fell 6.7% to $ 2.72 trillion as the price of Bitcoin (BTC) fell 8.3% to $ 58,425.

Best winners and losers among the 80 best coins in the industry. Source: Nomics

The only connection between this week’s top winners appears to be the Metaverse and games industry, which has seen bullish growth since Facebook became Meta on October 28, signaling its new focus on this segment. Another bullish news supporting the current rise in metaverse-linked tokens is that the Gemini exchange raised $ 400 million on November 19 to build a decentralized metaverse.

The top performers had specific reasons for pumping

Gala (GALA) pumped after her Coinbase and the Huobi List on November 16. The utility token powers a decentralized gaming ecosystem that gives players a voice in the funding and development stages.

Crypto.com (CRO) also had its own news on November 18 to justify the rally. The marketing department behind the Singapore-based stock exchange decided to spend $ 700 million to buy the naming rights to the stadium where the Los Angeles Lakers play in the NBA.

On November 19, Elrond (EGLD) also announced a $ 1.29 billion incentive program to help attract users and cash to its decentralized financial ecosystem. The project uses sharding technology to achieve up to 15,000 transactions per second (TPS).

Decentralized trading tokens take a hit

Among the worst performing were two decentralized exchange utility tokens. The only negative news appears to be the November 9 document from US Securities and Exchange Commission Commissioner Caroline Crenshaw. The study mentioned that the industry lacks market protections and raises concerns about pseudonym and market manipulation.

Quant (QNT) continues its downtrend after a 122% 7-day rally on September 3, fueled by a protocol upgrade that enabled the interoperability of the ERC-20 and ERC-721 tokens.

Vechain Thor (VET) retraced after a 38% 7-day pump on November 2 ahead of the release of its Proof of Authority (PoA) v2.0 mechanism testnet on November 5. Upgrading provides a more secure system for selecting block producers.

The OKEx Tether (USDT) premium, which measures the difference between its China-based peer-to-peer (p2p) transactions and the official US dollar currency, improved slightly.

OKEx USDT peer-to-peer premium against the USD. Source: OKEx

The current indicator of 99% is slightly bearish, and it signals weak demand from cryptocurrency traders to convert money into stablecoins, still a marked improvement from the 5% discount in mid-October. .

Meanwhile, the total open interest of cryptocurrency futures has been negatively affected by the widespread decline in prices. Nonetheless, the move was expected as total market cap retraced and some $ 2.7 billion in liquidations took place during the week.

Total open interest on aggregate crypto futures contracts. Source: Coinglass.com

Despite this, the indicator remained at the $ 50.3 billion mark, 60% more than two months ago. It should be noted that a drop in open interest rates is not necessarily bearish, but maintaining a certain level is worthwhile as more liquidity providers and market makers enter the market.

The above data may not look encouraging, but given that Bitcoin (BTC) and Ether (ETH) suffered significant losses this week, the overall market structure has held up well. Those betting on an “altcoin season” may have been disappointed, but at least there haven’t been widespread losses of 15% or more.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trade move involves risk. You should do your own research before making a decision.