Cardano
Crypto Market Review, July 11
This week might finally bring some volatility back to cryptocurrency market as U.S. inflation data is coming
This week might be more important for crypto than some traders and investors think as global financial markets are getting ready for June CPI data release. Another unexpectedly high round of inflation data will most likely affect Bitcoin and large L1 blockchains in a negative way, like we saw previously.
CPI data effect on Bitcoin
The unexpectedly high inflation data urged the Fed to step up its inflation control game and push the key rate to 0.75%, which caused an immediate 10% crash of BTC’s price following the 23% retrace caused by the aforementioned CPI data.
If inflation data would be higher than expected this week, we are likely to see the similar effect on the cryptocurrency market. Considering the remaining pressure from the U.S. dollar, which is still rallying against other foreign currencies, Bitcoin is unlikely to show any positive movements on the market unless we see an unexpectedly positive CPI release.
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Bitcoin’s failed reversal
According to the daily chart of BTC, we can clearly see that the reversal attempt the first cryptocurrency took in the last week has failed as it retraced back below the $21,000 price range and is now struggling at around $20,500.
The main reason behind the failed reversal attempt is the lack of inflows and trading volume on the market. The institutional inflows data suggests that funds and companies are not rushing to buy more Bitcoin, as the macro-environment on the digital assets market remains alienated after the 75% crash.
Compared to the last week, when institutional investors grabbed around $65 million worth of cryptocurrencies, this week’s data suggest that only $15 million worth of digital assets had been acquired by investors.
The aforementioned inflation data and the U.S. dollar rally are key factors pushing institutions away from purchasing more digital assets and fueling a potential recovery rally.
Ethereum, Cardano and others take a hit
The lack of inflows into Bitcoin affects alternative coins like Ethereum and Cardano that are losing around 10% of their value in the last two days.
In the case of Ethereum, we are still seeing enormous selling pressure on the market as exchanges like FTX offer considerably high interest for anyone willing to give their ETH to fund the positions of short sellers.
Additionally, Celsius sent around $50 million worth of coins on different exchanges to be able to cover some of their loans. Following the massive liquidation volume of Three Arrows Capital and other institutional investors, Ethereum took a massive 45% loss.
The digital assets industry today remains highly dependent from inflation expectations, rate hikes and other factors that were not previously tied to the cryptocurrency market in any way. The institutional adoption we saw in 2021 tied the industry to traditional financial markets that are still showing no signs of recovery to this day.
Popular Cardano-based decentralized exchange WingRiders has lost its position as the most valuable DEX on Cardano.
WingRiders slumped from the first position to third after losing more than 59% of the total value locked (TVL) on the platform in the past 30 days.
At the time of writing this line, WingRiders is now the third-largest DEX by total value locked, with a TVL of $19.66 million. It is noteworthy that WingRiders maintained the top spot for more than two months, claiming 42% of TVL On Cardano. However, the DEX has fallen from glory ever since.
Minswap Is Now Cardano’s Most Valuable DEX
The development also affected the total value locked on Cardano. The total value locked on Cardano has fallen below $100 million in the last 30 days after the WingRiders TVL slumped.
Interestingly, Minswap has taken the lead to become the most valuable decentralized exchange on Cardano after the massive decline of WingRiders’ TVL.
At press time, Minswap is leading, with a $49.09 million total value locked on the platform. The DEX hit the milestone after recording a massive growth of 30.9% in its TVL in the past 30 days. Minswap accounts for 51.82% of the total value locked on Cardano.
SundaeSwap, the first decentralized exchange on Cardano, is now the second most valuable DEX in the ecosystem. SundaeSwap is second in the ranking, with $19.72 million in TVL.
Like WingRiders, SundaeSwap has also lost a significant amount of its TVL over the past 30 days. In the past month, SundaeSwap has lost nearly 10% of the funds locked on the platform.
Commenting on the development, Cardano Daily, a platform that shares new developments about Cardano, said:
“After the major decline of @wingriderscom, the TVL scenario of the Cardano ecosystem has stabilized back to normal as we have seen in the past few weeks. @MinswapDEX still led the ecosystem with $51M TVL, contributing 50% of the ecosystem.”
CARDANO TVL STATUS
After the major decline of @wingriderscom, the TVL scenario of the @Cardano ecosystem has stabilized back to normal as we have seen in the past few weeks. @MinswapDEX still led the ecosystem with $51M TVL, contributing 50% of the ecosystem#tvl #cardano $ADA pic.twitter.com/xjZ6cHo8jX
— Cardano Daily (@cardano_daily) August 9, 2022
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