Cryptocurrency market trends
Cryptocurrency (cryptocurrency) market in the 4th week of May. Last Friday (21st), Vice Premier of the State Council of the People’s Republic of China Liu He mentioned virtual currency trading and mining at the Financial Stability and Development Committee of the State Council of the People’s Republic of China.
He indicated that he would tighten regulations in China again, and he was concerned about the management risk of mining companies in China, and the market was once again negative. After the official announcement, some cryptocurrency businesses such as Huobi and Bybit have announced that they will stop operating in China.
In addition to the announcement by the Chinese authorities, Bitcoin (BTC), which seems to have had a series of negative factors from the middle of the year, such as the rekindling of environmental problems, continued to decline. The monthly rate of decline was close to 40%.
Ethereum (ETH) temporarily fell below $ 2,000 on the 24th of the week, but then rebounded. Amid the declining market price across the board, soaring prices such as Ethereum’s layer 2 solution Polygon (MATIC) were also noticeable.
Relation: How to strengthen the crackdown on cryptocurrencies in China and how to read information for investors?[Video commentary]
Market capitalization TOP20 rate of increase / decrease
Even in the cryptocurrency market, which continues to decline, the weekly rate of increase / decrease of the top stocks by market capitalization is as follows. (Excluding stable coins: as of 30th)
- Polygon (MATIC): 33.44%
- Uni Swap (UNI): 10.62%
- Ethereum Classic (ETC): 5.46%
- Chainlink (LINK): 3.97%
- Ethereum (ETH): -0.85%
Cryptocurrency Polygon Network (MATIC) continues to perform well. DFINITY’s Internet Protocol Governance Token ICP also remained in 11th place. On the other hand, there was a scene where THETA recorded a retrograde height, and he re-emerged in 20th place.
Stable coin circulation exceeds 10 trillion yen
On May 25, the total circulation of major stable coins exceeded 100 billion dollars (11 trillion yen). According to the statistics of The Block of CoinPost affiliated media, the issuance volume of stable coins such as tether (USDT) and USD coin (USDC) has continued to increase since 2021, and the total circulation volume at the beginning of the year is about 300. 100 million dollars (3.3 trillion yen).
As is well known, tether is by far the number one in terms of the amount of stable coins issued, but the market share of USDT is gradually declining compared to other stable coins. In the overall cryptocurrency market, the ratio of USDC in the TOP 10 has reached 20%, and the issuance volume of Binance’s US dollar-denominated stable coin BUSD and MakerDAO’s stable coin DAI is also increasing remarkably.
The on-chain volume of stable coins in May has already reached a record high on a monthly basis as of the 28th, showing the tendency of investor money to sell profits in the down market.
Recorded the highest number of searches for Bitcoin and Ethereum this year
In addition, both Bitcoin and Ethereum recorded the highest number of Google searches in May this year. On Google Trends, the highest number of daily searches was observed on May 19. On May 19, a large amount of loss cuts occurred and the market as a whole had plummeted, and the movement to find out the reason led to an explosive number of searches.
The number of CoinPost accesses also reached a record high, indicating that a similar trend was confirmed in Japan.
Click here for a detailed explanation of the plunge market on the 19th, when Bitcoin plunged to the 3 million yen level for the first time in 3 months.
Relation:Large-scale loss cut occurs due to the collapse of virtual currency Bitcoin falls below 4 million yen
Cryptocurrency exchange trading volume updated by ATH
Although the cryptocurrency market continued to perform well in 2021, the market environment was on a downtrend in May. However, the trading volume of the virtual currency exchange recorded a record high of 2.13 trillion dollars (about 230 trillion yen). Monthly trading volumes on the 24 crypto exchanges that The Block justifies have increased for the second straight month.
The increase in trading volume was particularly noticeable on Coinbase, which was listed on the Nasdaq in April, and Frank Chaparro of The Block grew from $ 11 billion (1.2 trillion yen) last year to $ 182 billion (20 trillion yen). Pointed out that it was done. Compared to May 2008, the transaction volume has increased nearly 16 times.
Exchange volumes are surging
Coinbase volumes in May 2020: $ 11bn
Coinbase volumes in May: $ 182bn pic.twitter.com/tYsYljoxGG
— Frank Chaparro (@fintechfrank) May 28, 2021
On a coinbase basis, the business performance in the first quarter of 2009 was also strong, and the total revenue reached 1.8 billion dollars (200 billion yen) in the settlement of accounts in the middle of May. Interesting trends were also reflected, such as increased interest from institutional investors in Ethereum.
Relation:US Coinbase, first quarterly financial results after listing on Nasdaq
Grayscale investment trust premium is recovering
In addition, while the declining market is drawing attention, grayscale investment trusts, which have been negatively diverging from the spot price (NAV) since late February, are gradually recovering.
According to the statistics of the virtual currency data site bybt, as of the 28th, the negative divergence of Grayscale’s Bitcoin investment trust (GBTC) was -11.46%. Two weeks ago, the discount was expanding to 27%, so it seems that it is gradually recovering, but it is still showing a negative level, and it is in a weak situation to call it a priming of new money for institutional investors. ..
On the other hand, data from the chart analysis site Y Charts also confirms that the premium of the company’s Ethereum investment trust (ETHE), which had turned negative, has recovered, as with GBTC. On May 24th, it temporarily turned to a positive premium of 11%.
Grayscale’s GBTC manages an amount equivalent to about 650,000 BTC, which is about 3% of the total Bitcoin. From 2020, the pace of increase in the number of investment cards has been increasing, and against the backdrop of arbitrage demand, new inflows have been a positive factor in the market at one point in parallel with high premiums. (Bitcoin investment trusts are structurally locked for half a year after qualified U.S. investors and institutional investors purchase investment trusts)
In the past, the premium for the spot price sometimes exceeded 100%, but it has been gradually decreasing since December 2009. It turned negative for the first time at the end of February.
When the premium turned negative, new inflows of funds stagnated, and Grayscale announced in March that it would stop purchasing new investment trusts.
In April, it announced a policy to convert Bitcoin investment trusts to exchange-traded funds (ETFs) with the aim of improving the liquidity of the secondary market, and it is now two months after the policy was announced.
Relation:US Grayscale announces policy to convert Bitcoin investment trust GBTC to exchange-traded fund (ETF)
CME crypto futures
The trading volume and open position (OI) of cryptocurrency futures provided by the Chicago Mercantile Exchange (CME) are as follows. Has the trading volume of Bitcoin futures, which had been declining since February, picked up a little in May?
On the other hand, Ethereum futures trading, which started trading in early February, has shown exponential growth since March, even considering the soaring price of physical ETH, and qualified investors, hedge funds, and institutional investors. It can be seen that they are beginning to attract attention from such groups.
Bitcoin on-chain data
Bitcoin (BTC) related on-chain data is as follows.
The proportion of mining pools that show support for Bitcoin’s large-scale upgrade plan “Taproot”, which was introduced on the 1st of this month, continues to rise.
As of the 29th, the Taproot signal (support) rate from the main mining pool was 97.18%. On a block-by-block basis, it was confirmed that about 80% of the blocks in the past two weeks signaled Taproot activation.
If 90% of Taproot’s support blocks do not reach 90% by the deadline, other methods will be considered for Taproot activation. As of 30th, 81.55% of signal blocks show Taproot support by block criteria.
Taproot is a big Bitcoin upgrade plan that has been said since SegWit. By introducing new technologies such as Schnoor signature and MAST, the privacy function and scalability of Bitcoin are mentioned as advantages. As of January, 90% of the major mining pools had already shown a basic agreement.
Relation:Bitcoin major update “Taproot” implementation test started
Bitcoin on-chain trading volume
According to The Block statistics, monthly on-chain trading volume on the Bitcoin network in May was the second highest in history. Adjusted On-chain Volume refers to the adjusted on-chain transaction volume, such as transactions that continue to send BTC between your own addresses and deducting spam-like transactions.
Bitcoin’s monthly on-chain trading volume entered 2021 and continues to break the record for the highest trading volume ever, with December 2017 being the highest level so far.
Ethereum on-chain data
Notable on-chain data related to Ethereum (ETH) is as follows.
ETH2.0 staking amount
Staking refers to an asset management method that obtains virtual currency as a dividend by locking the virtual currency on the blockchain.
Total staking amount:Approximately 5.18 million ETH (Last week: Approximately 4.76 million ETH)
Relation:What is virtual currency staking? | Mechanism of “reward” that even beginners can understand
ETH’s monthly on-chain trading volume is record high
In addition, Ethereum’s monthly on-chain trading volume in May has already reached a record high, as is Bitcoin, whose monthly on-chain trading volume continues to rise. Notably, in dollar terms, May’s on-chain trading volume on the Ethereum network is higher than Bitcoin’s.
Also, comparing the weekly average trading volume, it can be confirmed that ETH’s on-chain volume has exceeded Bitcoin since May 3, when the ETH price exceeded $ 3,000 for the first time.
It is believed that the DeFi platform and the growing popularity of NFTs are boosting it.
Monthly active address on the ETH network
In addition, monthly active addresses on the Ethereum network reached a record high, following April. An active address is a unique address that has been sent or received on the ETH network. It is used to measure the utilization of blockchain and network effect.
Previously, the highest record was 17.62 million addresses in January 2018, but in April, 17.66 million addresses, which is slightly higher, used Ethereum. As of the 30th, it has recorded 18.56 million addresses.
DeFi (Distributed Finance)
DEX volume also hit a record high
Volume on the decentralized exchange (DEX) also far exceeded the highest level ever. With the rise of PancakeSwap, the trading volume in May marked 33 trillion yen (about 303.2 billion dollars), showing an 88% growth rate from the previous month.
Pancake Swap, which recorded about half of the total trading volume, was followed by Uniswap, Sushiswap and Uniswap v3, which completed the mainnet implementation this month.
Relation:Uniswap v3, Ethereum mainnet implementation completed
The transaction volume of DEX agridata is also the highest ever
With the expansion of DEX usage, the trading volume of DEX aggregators also reached a record high. DEX aggregator is an algorithm that accesses multiple DEXs and displays the best transaction price. As a typical example, 1inch, Uniswap, Kyber, 0x, etc. provide similar services.
The monthly trading volume of DEX Agridata in May was about 2 trillion yen, and 1inch continued to account for the majority. Meanwhile, the new cryptocurrency exchanges Matcha and Paraswap provided by 0x are also showing rapid growth, and the market share of 1inch has decreased by nearly 25% compared to May last year.
Relation:DeFi project 0x launches decentralized exchange “Matcha”
UNI, CAKE Changes from the previous week
The week-on-week comparisons of uni-swap and pancake swap of DeFi top stocks are as follows. (As of 30th)
- Uni-swap (UNI): 22.77 (4.5%)
- Pancake swap (CAKE): 14.35 (-14.0%)
Relation:What is Binance Smart Chain, the blockchain that PancakeSwap runs on?
Top NFT stocks: Compared to the previous week
The rate of increase / decrease of NFT (Non-Fungible Token) related stocks is as follows. (As of 30th)
- THETA: 6.06 (-4.1%)
- Chillies (CHZ): 0.262995 (-5.9%)
- Engine coin (ENJ): 1.28 (0.3%)
Relation:What is non-fungible token NFT? | Explaining the main features and future potential
NFT trading volume is strong even in the down market
On the other hand, NFT (non-fungible token) trading remained at a high level even when the market price plunged in May. On average, more than 85,000 NFTs worth $ 5.8 million (¥ 600 million) are traded on a daily basis, an increase of 277% compared to the beginning of the year.
|Around 6/1||To Stellar Protocol 17 upgrade|
|6 / 4-6 / 5||Bitcoin2021 Largest event to be held in the United States (Miami)|
|6/4||Deadline for response documents to Ripple proceedings, SEC counterarguments|
To Stellar Protocol 17 upgrade
An upgrade to Stellar Protocol 17 is planned for June 1, 2021 to implement new features.
It will be released on the testnet on May 4, 2021, and an update vote will be held by the node on June 1, 2021.
If the number of votes approved exceeds a certain number, an upgrade to Stellar Protocol 17 will be carried out.
Bitcoin2021 Largest event to be held in the United States (Miami)
6 / 4-6 / 5
Announced change of Bitcoin 2021’s largest event venue from Los Angeles to Miami.
The reason is to ensure sufficient time for the second wave of COVID-19 to pass and the vaccine to be rolled out.
The conference was also postponed from June 4, 2021 to June 5, 2021.
The event will bring together some of the best talent in the field, with dozens of unique BTC activations and the celebration of the world’s best technology through Internet attendees.
Deadline for response documents to Ripple proceedings, SEC counterarguments
In a lawsuit over the sale of XRP, it was revealed that executives of the US SEC and US Ripple reached an agreement on the deliberation schedule.
The next deadline for Garlinghouse and Larsen to submit a response to the SEC’s counterargument is June 4, 2021.
Reference: Ripple proceedings: CEO and others request withdrawal of complaint, deliberation schedule decided
Click here for the weekly report of the previous week:DeFi-related collapses such as Ethereum are conspicuous compared to the previous week, and there is also data exploring the bottom of Bitcoin
Relation:Introducing the crypto index Explaining how to use the “CoinPost app” from a trader’s perspective | Contribution: Bit Sennin
Popular trading related articles
Images used under Shutterstock license
“Cryptocurrency” means “cryptographic assets”