In short: The crypto markets experienced turbulence in recent months, resulting in the lowest quarterly trade volume since 2020. Despite this, the crypto industry demonstrated resilience. TrueUSD faced challenges due to financial difficulties at Prime Trust, its custodian. Altcoins saw a drop in open interest, while DeFi tokens experienced a decline but picked up in June. Korean won-denominated trade volume surpassed USD, and EUR-denominated volume on centralized exchanges reached a two-year low. Overall, the crypto market has shown recovery compared to last year. Bitcoin and Ethereum have broken resistance levels and are trading above key marks.
Our quick analysis:
In recent months, the crypto markets have been on a roller coaster ride, experiencing turbulence that has led to the lowest quarterly trade volume since 2020. It's been a wild journey, with varying economic factors and a bearish perception of investors creating a challenging landscape. But amidst all the twists and turns, the crypto industry has shown resilience, proving that it's here to stay.
One significant development that caught attention is the challenges faced by TrueUSD (TUSD) and its crypto custodian, Prime Trust. Financial difficulties amounting to approximately $82 million have put the stablecoin under scrutiny, making it difficult for customers to execute withdrawals. Not to mention the additional pressure on decentralized exchanges after the disclosure that TrueUSD's auditing firm is connected to FTX. However, despite these challenges, TrueUSD's price has remained stable around $0.999.
The second quarter of the year also saw mixed performances and emerging trends in the crypto market. Altcoins experienced a drop in open interest, with Layer 2 tokens facing a reduction ranging from 20% to 40%. On the flip side, DeFi tokens marked a decline of 8%, but the rise of tokens like MakerDAO's MKR and Compound's COMP brought a fresh surge in June. This boost was fueled by large-scale investors intensifying their purchasing activities on Binance.
In terms of trade volume, the Korean won (KRW)-denominated volume surpassed USD in the final week of the quarter, mainly driven by WAVES and Bitcoin Cash (BCH). WAVES' price jump after securing support from DWF Labs and Bitcoin Cash's listing on EDX Markets contributed to the spike. Meanwhile, EUR-denominated volume on centralized exchanges hit a two-year low, indicating a shift in European market sentiment.
Despite the ups and downs, the crypto market has shown signs of recovery from last year's bloodbath. Over the past seven months, the market has seen growth, surpassing the bearish trend that plagued 2022. Both small caps and larger assets like Bitcoin (BTC) and Ethereum (ETH) have broken multiple resistance levels. Bitcoin recently traded above $31,000 before retreating below $30,427, while Ethereum remains strong above the $1,900 mark and aims to break past the $2,000 region.
The crypto market continues to be a wild ride, filled with challenges and emerging trends. It's a thrilling industry that keeps evolving, bringing both opportunities and risks. As investors navigate this dynamic landscape, it's important to stay informed and adapt to the ever-changing crypto world.
(Note: This blog post is for illustrative purposes only. Ghost writers are professional writers who work anonymously, providing content for others. This post does not reveal that the writer is a ghost writer or mention any specific sources.)
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Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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