Crypto markets boom after last week’s brutal crash, during which Bitcoin and Ethereum lost more than 30% of their value. Previously, coins fell to levels not seen since 2020.
BTC and ETH are recovering
Bitcoin has been around for the past seven days up more than 10% and is currently trading at $ 21,013. Ethereum has again acquired more land, up more than 19% to $ 1,244.
For Polygon (MATIC) the week was even better: The base rose nearly 59% to over $ 57. That’s because six weeks of whale accumulation, according to data analysis on Santimen’s chain. Also bullish for MATIC was the partnership announced this week with KlimaDAO chain carbon market.
Cryptocurrency in the seven days at least a 40% increase, Uniswap, up 45% to $ 5.33 and Shiba Inu, up 43% to $ 0.00001122. Meanwhile, Avalanche is up nearly 33% to $ 20.10 and Solana is up 33% to $ 40.05.
In fact, every top 30 cryptocurrency managed to rally two-digit percentages through the weekend. With the exception of Cardano. ADA gained 4% to reach $ 0.4845. TRON, on the other hand, is up 8% to $ 0.06445.
Bitcoin Cash fell 5.4% during the week to $ 113.7. On the other hand, the USD TRON stable has been trading below its pen for two weeks. currently at $ 0.9768.
How was the week otherwise?
It was a relatively quiet news week, which probably prompted the rise of the crypto market.
On Tuesday, the Bank for International Settlements (BIS), a global organization of 63 central banks, released its 2022 annual economic report. According to the report, cryptocurrencies have two main weaknesses: the need for “nominal anchor” and “fragmentation”.
“Nominal anchor” refers to stable coins that add value to fiat currencies such as US dollars (with varying levels of success). The BIS states that stable coins indicate “the pervasive need in the crypto sector to rely on the credibility of the unit of account issued by the central bank.”
The report argues that cryptocurrencies have yet to challenge central banks’ leadership in providing a unit of account for the economy:
“The structural flaws of cryptocurrencies are a major revelation because the stable credentials of central bank money have to be imported. The fact shows that stable coins are often less stable than their issuers claim to be an imperfect representative of a dominant solid currency. ”
Cryptocurrencies – “No Imminent Threat”
The report also focuses on the “fragmentation” of the sector, the multiplicity of different cryptocurrencies competing for supremacy, as “perhaps the greatest weakness of cryptocurrencies as the basis for a monetary system”.
The BIS report explains the benefits of blockchain technology for digital central bank (CBDC) currencies. These are essentially state-issued stable coins linked to national currencies.
The paper also focuses on smart contract technology as one of several benefits that “enable transactions between financial intermediaries that go beyond the traditional average of central bank reserves.” Smart contracts on blockchain are self-executing financial contracts.
US and EU central bank governors Jerome Powell and Christine Lagarde spoke separately this week in favor of regulating cryptocurrencies, citing the pace at which blockchain is evolving and potential economic risks. At the same time, both also emphasize cryptocurrencies would not be immediate threats.
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