Most of the world’s major cryptocurrencies crashed last week, including giants Bitcoin (down 3%) and Ethereum (down 2%). But some managed to resist the retreat.
Avalanche’s AVAX rose an impressive 40% from last Saturday to $115, while LUNA’s rose 14% to $72.
One of the so-called “Ethereum killers”, the AVAX was only worth $10 less than it was six months ago. Since then, its price has exploded to become the ninth cryptocurrency in market capitalization.
AVAX’s recovery is largely due to the growth in institutional adoption. On December 14, financial services company Circle announced that it was bringing its stablecoin USDC into the Avalanche blockchain.
Two days later, more important news arrived: the custodian of BitGo cryptocurrencies said it will support AVAX. The announcement also confirmed that BitGo Bitstamp and Bitbuy customers will now be listing AVAX on their exchanges in early 2022.
LUNA’s rise was also not hampered by broader market trends this week. LUNA’s creator, blockchain Terra, also produces multi-currency stablecoins, the most successful of which is TerraUSD (UST), which is currently positioned to launch DAI as the fourth largest stablecoin by market capitalization.
The UST price is indexed to the dollar through the LUNA, in an ingenious mechanism whereby, for every UST created, one dollar of LUNA must be burned. UST’s market capitalization rose 40% last month, according to CoinGecko.
Dogecoin (DOGE) also had a great week, despite a modest increase in value of about 3% last week to $0.173 cents. On Tuesday, the meme currency exploded 20% after Tesla CEO Elon Musk announced that his automaker will accept Dogecoin for merchandise payments.
It’s been a relatively slow news cycle for market leaders Bitcoin and Ethereum this week, and that’s reflected in their respective price performances.
Bitcoin has dropped 3.2% in the past seven days to $46,820. Ethereum did a little better. The world’s second favorite currency depreciated 2.2% over the same period. It trades at $3,947 at the time of this writing.
It should be remembered that Bitcoin is scarce. Only 21 million will be extracted, which many investors argue is equivalent to “digital gold”. This week, the amount of Bitcoins extracted from your total stock has reached 90%, but don’t expect the remaining 2.1 million coins to be extracted anytime soon. Estimates suggest that full supply will not be tapped until 2140.
Across the Atlantic, the Bank of England on Tuesday warned that cryptocurrencies could disrupt the established financial system.
The bank’s deputy governor, John Cunliffe, told the BBC: “The point, I think, that concerns us is when it becomes integrated into the financial system when a big price correction could actually affect other markets and affect market participants financial established […] It’s not there yet, but it takes time to create standards and regulations. ”
Cunliffe proposes that regulators “roll up their sleeves” and build a framework for cryptography, because while the market currently “isn’t there yet” in terms of the level of integration needed to be considered potentially disruptive, the signs are that cryptography is growing and regulators need to be prepared.
In other words, Cunliffe took an indirect vote of confidence in cryptography.
Bitcoin rallied briefly on Wednesday, going from less than $47,000 to $49.5 in the space of a few hours after the Federal Reserve indicated it would begin ending its pandemic stimulus program while raising rates. interest in the next year.
Finally, the US Securities and Exchange Commission announced that it was delaying its verdict on the approval of Bitwise and Grayscale’s Bitcoin ETF proposals. The SEC will now take another 45 days to review the orders. To date, the regulator has not approved a single cryptographic ETF in the country, while five have been given the green light in Canada.
Given that Fidelity – an American asset manager that manages more than $4 trillion in assets – has chosen Canada to launch its ETF, the SEC will likely need more time to consider new applications.
*Translated and edited with the permission of Decrypt.co.