This week in Markets
Bitcoin is either in a downward spiral or moving up and down along a horizontal line. And we think this might continue for a prolonged period until the ETH merge is complete. Further, we’re probably witnessing a liquidity grab in the ongoing market situation, and significant-stop losses can trigger at the bottom. Additionally, the Bullish bat pattern is also a strong reversal pattern, as seen in the chart below. Finally, the BTC dominance has also been rising, leading the ALTS to show weak behavior.
The Gaming, NFT, and P2E industry have been seeing an industry-wide downfall. So let’s first start with the NFTs.
According to data from Dune, the daily NFT trading volume on exchanges has fallen significantly. Further, the average trading volume on OpenSea was below $50 Million in June, while the volume on others, such as LarvaLabs, has fallen below a million dollars.
The crypto gaming industry as a whole was on a boom later last year; however, things have been changing lately. The cumulative active users on the top Ethereum games have fallen to less than 3000, which was the number of active users of just Axie during July 2021.
Even though the NFT gaming industry saw a tremendous boom, the ecosystem needs to develop for the best. A lot of money has been pouring into this industry. Still, apart from the popularity of the games, there is hardly any game out there that retains players and provides an immersive experience for the players.
Creating a game that is loved and played on a wide scale is very difficult; however, anyone can figure out how to put it on the blockchain. Imagine if the actual companies in the gaming industry decided to drop into this sector. The gaming experience, user base, and the amount of capital they would bring in.
Here’s a falling ladder of the monthly new accounts on Axie.
This pattern is not just limited to Axie infinity; even one of the most popular P2E out there, the Defi Kingdoms, has been hit significantly. The image below gives a comparison between the number of users vs. TVL in the Defi kingdoms.
As you can see, the user count has fallen from 37K on Dec 9, 2021, to 10K on June 10, 2022. Further, the TVL has fallen from $6 Billion on the 4th of January 2022 to under $100 Million on the 10th of June 2022.
Moreover, there is a similar fall in the TVL of MOBOX, which is sitting at around $32 Million, dropping from over $180 Million in January.
Finally, if you think it’s just the effect of the bear market, let’s have a look at the social media score of Defi Kingdoms, which went down from over 1800 to 33.
The Weekly Happenings
- Colombia is working to establish a regulatory framework for cryptocurrency trading. [Learn more]
- Lido’s $stETH in a Rough Patch Starts to De-peg [Know how?]
- Lithuania to Tighten Crypto Regulations and Ban Anonymous Wallets [Learn more how]
- Washington State Imposes 29% Rate Hike on Hydropower for Bitcoin Miners [Learn why]
- Crypto Regulation Needs to Keep up with Market Growth, says Bank of Canada [Learn More]
- Nigerian Stock Ex. to Launch a Blockchain-enabled Exchange in 2023 [Read More!]
- IMF study Recommends the use of Eco-friendly CBDCs to Tackle Environmental Concerns. [Learn More]
- Crypto Markets Bigger Than Subprime Mortgages: Bank of Spain Governor [Link to the article]
- Tether Announces Launch of $USDT on the Tezos Network [Article]
- New York’s Financial Watchdog has New Guidance for Stablecoins [Link to read more]
- Japan Reviews Legislation to Seize Illicit Crypto Assets [Read More]
- The UK to Test Blockchain Technology in Traditional Market Activities. [Learn more]
- US Senators Introduces Crypto Bill, Grants more powers to CFTC [Read More]
- Gemini has been accused of misleading its customers with heightened promises. [Know More]
- Celsius Network Loses over 35,000 Ether in Stakehound Key Blunder. Link
- Does Kwon Accused of Sending $80 Million a Month to Secret Wallets? Link
- The Optimism Hacker Returns 17 Million of the stolen OP Tokens. Link
- Pudgy Penguins NFT Phishing Scam. Link
- Multiple Moonbirds NFT Phishing Scams. Link
- Genies is an avatar ecosystem that consists of avatars, fashion, and collectibles, whose Discord channel was hacked. Link
- NFT Phishing Scam Exposed, Around $1.7M Stolen. Link
The Charts and Dips
- SFM Price Analysis June 2022 [Link]
- Crypto to Look Out for this Week: BTC, ETH, BSV, ICX, NEO [Link]
- VET Price Analysis June 2022 [Link]
- Top 3 Metaverse Crypto To Look Out For In June 2022: ONT, APE, MANA [Link]
- XTZ Price Analysis June 2022 [Link]
- Top 3 Crypto To Look Out For In June 2022: ADA, FTM, MATIC [Link]