Recurring market commentary on what’s happening in the crypto markets, summarized by the Crypto Broker team at Crypto Finance AG.
Market commentary
Good Morning!
It's been a quiet week. Turnover was lower than average. We also expected to see more volatility in the market due to news updates on the Omicron variant or the Chinese real estate developer, Evergrande. This, however, did not happen. On the flow side this week, we saw a selling overhang in both Ethereum (ETH) and Bitcoin (BTC).
Ethereum scaling solutions and competitors
Yesterday's Polygon "zk day" resulted in an announcement: Polygon has acquired "Mir" for USD 400 million. Mir is a project focused on recursive zero-knowledge proofs. After the merge with the Hermez network in August, this is the second major transaction within a short period of time. Because of all the news and the current trend around the zk proofs, Polygon (MATIC) is trading close to its all-time high (ATH) despite the fact that the overall market is currently rather weak.
The former darling, Solana (SOL), seems to slowly but surely be losing its allure. Yesterday, the SOL chain was clogged, which wasn't resolved until last night. Unlike the last time this happened, the chain was running, but these incidents are starting to pile up. This incident had an impact not only on the chain's throughput but also on the price. SOL is currently trading at USD 180, and has lost about a quarter of its value since December 1: This is more or less in the bottom rank in terms of performance among the "Ethereum competitors".
Other developments
The option expiry today is not significant and will have little impact on the price. Currently, the market is watching the inflation numbers like a hawk. How long can FED Chair, Jerome Powell, and other central bank chairs still call inflation transitory? A first indication will be the US inflation figures (around 6.8%), which will be published today at 14:30 CET.
Happy Friday!
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.
