Recurring market commentary on what's happening in the crypto markets, summarized by Crypto Finance AG Senior Trader Patrick Heusser.
Market commentary
Good Morning!
It has been a rather volatile week with a healthy correction below $50'000. The trading range registered more than 15'000 points: more than a 25% correction from high to low.
The overall situation for derivatives has eased a bit, leaving the futures trading at less premium. There was an expiry with huge open interest for 48'000 contracts, and investors finally took profit. Our desk experienced a mixed situation, as we also picked up trades on the downside.
It will be very interesting to observe the entire DeFi sector, since this sector suffered greatly during the last week of February. Of course the total locked value dropped accordingly as well, but it is still amazing that almost $37 billion are still locked in DeFi. The most dominant coins within this sector are Maker, AAVE, and Compound (Lending category). There are additional categories represented in the top 10, such as the DEXes, e.g. Uniswap, Curve Finance, Sushiswap, and Balancer. Another promising category is Derivatives, with the coin Synthetix, with over $2 bn locked in value.
Most of these correlate heavily with ETH as they are based on the Ethereum chain. The second biggest coin based on market capitalisation ($165 bn) will soon be listed as an ETF (Exchange Traded Fund) on the Toronto Stock Exchange. It is identical to the BTC ETF. The launch will be made in partnership with Mike Novogratz’s Galaxy Digital: One of the largest cryptocurrency firms in the space today.
We are definitively coming a big step closer to mass adoption of cryptocurrencies.
Copyright © 2021 | Crypto Broker AG | All rights reserved.
All intellectual property, proprietary and other rights and interests in this publication and the subject matter hereof are owned by Crypto Broker AG including, without limitation, all registered design, copyright, trademark and service mark rights.
Disclaimer
This publication provided by Crypto Broker AG, a corporate entity registered under Swiss law, is published for information purposes only. This publication shall not constitute any investment advice respectively does not constitute an offer, solicitation or recommendation to acquire or dispose of any investment or to engage in any other transaction. This publication is not intended for solicitation purposes but only for use as general information. All descriptions, examples and calculations contained in this publication are for illustrative purposes only. While reasonable care has been taken in the preparation of this publication to provide details that are accurate and not misleading at the time of publication, Crypto Broker AG (a) does not make any representations or warranties regarding the information contained herein, whether express or implied, including without limitation any implied warranty of merchantability or fitness for a particular purpose or any warranty with respect to the accuracy, correctness, quality, completeness or timeliness of such information, and (b) shall not be responsible or liable for any third party’s use of any information contained herein under any circumstances, including, without limitation, in connection with actual trading or otherwise or for any errors or omissions contained in this publication.
Risk disclosure
Investments in virtual currencies are high-risk investments with the risk of total loss of the investment and you should not invest in virtual currencies unless you understand and can bear the risks involved with such investments. No information provided in this publication shall constitute investment advice. Crypto Broker AG excludes its liability for any losses arising from the use of, or reliance on, information provided in this publication.
