By Michelle | August 11, 2024
If I had an Ethereum for every time I kicked off a weekly update with “What a week,” well, let’s just say I’d be relaxing at my moon base, waiting for Elon Musk to text me about our next Mars mission.
But seriously, what a week!
Market Recap: Weathering the Crypto Tempest
In the ever-turbulent world of crypto, the total market cap dropped from a lofty $2.4 trillion to around $2 trillion. Bitcoin flirted with $50,000, and Ethereum reached the $2,000 mark. But here’s the kicker: 155,000 traders were liquidated, leading to a whopping $573 million in positions closed. While the market has bounced back somewhat, the question remains: Should we buy the dip or head for the hills?
We’ll discuss that shortly, along with three tokens that have caught our eye during this downturn. But first, let’s do some housekeeping.
Are We Out of the Woods Yet?
Now, let’s talk ETFs. This week, put them to the test. What are the results? Not too shabby. Bitcoin ETFs saw $168 million in outflows on Monday, but interestingly, BlackRock’s fund remained untouched. Ethereum ETFs experienced inflows on Monday and Tuesday, signaling that the Grayscale selling pressure might be easing.
Other positive signs include:
- Rate Cuts on the Horizon: September could bring interest rate cuts, which might serve as a bullish catalyst for the market.
- Japanese Carry Trade Unwinding: The initial shock has passed chiefly, with about 75% of the trade already unwound. Plus, the Bank of Japan has paused rate hikes for now.
- FTX Estate Payout: A cool $12.7 billion will be returned to crypto holders in the coming months, which could inject some much-needed liquidity into the market.
- Rising Global Liquidity Index: Increased liquidity often leads to higher prices for risk assets like cryptocurrencies.
All in all, the crypto landscape remains robust. Remember, just a few weeks ago, one of the most significant IT outages in the world was a crypto story that sent prices soaring. This week’s events? Not so much.
Top 3 Tokens to Watch in the Current Market
As promised, after some serious brainstorming, we’ve pinpointed three tokens worth focusing on during this pullback.
- Aerodrome (AERO)
- Aerodrome has swiftly become the second-largest DEX on Ethereum by volume and is the clear revenue leader. Although other DeFi platforms hold their own, AERO, being relatively new, has more room for growth. Backed by Coinbase and the Base network, this one’s definitely on our radar. Check out the “Aerodrome Blueprint” in our library for those curious about yield farming on Aerodrome. Spoiler alert: Your strategy depends on whether you should lock and stake your AERO.
- Solana (SOL)
- We’re doubling down on Solana, especially amid the recent market turbulence. Solana has shown resilience throughout this market cycle, and when it comes to “ETH alternatives,” it’s leading the pack. But here’s the twist: gaming. Solana’s gaming ecosystem is burgeoning, with titles like Nyan Heroes, Decimated, Star Atlas, The Backwoods, and Aurory leading the charge. Gaming is a massive use case for crypto, and we think Solana could spearhead this movement.
- Polygon (MATIC)
- MATIC might be the sleeper hit of the season. Polygon is making waves despite flying under the radar, especially in the gaming sector. Daily active addresses on Polygon have surged by 227% this year, and gaming activity has spiked by 1,615% quarter-over-quarter. Plus, Polygon’s been landing some impressive partnerships, like collaborating with FOX and TIME for content verification and licensing. Keep an eye on Polygon’s upcoming upgrade to POL – we’ve covered all the details in our library.
That’s a wrap for this week! Stay tuned to Bitvision.ai for more updates, and as always, happy trading!