Key Data Points Suggest Short Term Crypto Market Correction Is Over

The performance of cryptocurrencies over the past 7 days may have seemed slightly less than exciting, especially as the total market cap rose “only” 1.8% to $ 2.7 trillion. However, even with the price action muted, some altcoins managed a decent rally. Bitcoin (BTC), on the other hand, was down 6% through November 28, but still managed to end the week up 1.5% after a rally of $ 3,200 on Sunday night.

Winners and losers of the best 80 coins. Source: Nomics

Metaverse tokens are always pushing to new heights

The Metaverse sector continued to outperform with Gala (GALA), The Sandbox (SAND) and Decentraland (MANA) among the top 5 winners. While few game-winning and metaverse “environments” are available for true interaction, major news and partnerships still reinforce these metaverse-related token ratings.

As reported by Cointelegraph on November 24, Metaverse Group purchased virtual land from Decentraland for approximately $ 2.5 million. On November 25, a digital land in the Axie Infinity game was sold for 550 ETH on November 25, which is roughly $ 2.5 million.

In addition, a collaboration between Sony Pictures and AMC Entertainment announced on November 28 will offer up to 86,000 NFT Spider-Man to celebrate the opening day of its new feature film.

Zash (ZEC), a privacy-focused cryptocurrency launched in October 2016, peaked 20% in 24 hours on November 20 as developers announced plans to ditch traditional mining and migrate to a Proof of Stake network.

Amp (AMP), the native guarantee token of the Flexa payments network, also recovered on November 24 after it was listed on Binance. At the same time, Terra (LUNA) benefited from a 5.4 million tokens burned in four days, according to Jason Wang, founder of startup Caviar and crypto investor.

Ethereum killers limp

Among the worst performers were four smart contract platforms aimed at breaking Ethereum’s dominance: Cardano (ADA), Near Protocol (NEAR), Polkadot (DOT) and Harmony (ONE).

On November 24, Ethereum co-founder Vitalik Buterinand released a proposal for a block transaction call data limit to “reduce costs and incentivize an ecosystem-wide transition to an Ethereum centered on the rollup ”.

Aave Protocol (AAVE), the guaranteed loan and yield platform, continues to trade in a downtrend after its TVL fell 30% in 3 months.

Dash (DASH) saw its number of addresses with at least 1,000 tokens decrease to 5,210, the lowest level since July 2018.

Tether and derivatives markets appear sluggish

The OKEx Tether (USDT) premium, a measure of the difference between peer-to-peer (P2P) transactions based in China and the official US dollar currency, improved slightly.

OKEx USDT peer-to-peer premium against the USD. Source: OKEx

The indicator’s 99% reading is neutral to bearish, signaling weak demand from cryptocurrency traders to convert money into stablecoins, but this is still a marked improvement over the discount. 5% in mid-October.

In addition, total open interest in cryptocurrency futures remained stable at nearly $ 50 billion, which is just 10% below the all-time high. It should be noted that a drop in open interest rates is not necessarily bearish, but maintaining a certain level is attractive as more liquidity providers and market makers enter the market.

Total open interest on aggregate crypto futures contracts. Source: Coinglass.com

The open interest in futures provides a healthy reading given the nearly $ 2.0 billion in sell-offs that occurred during the week. The total 10% market cap of cryptocurrencies fell to $ 2.370 billion on November 25 and was responsible for 44% of forced terminations of futures contracts.

The above data may not sound exciting, but given that Bitcoin (BTC) and Ether (ETH) are both strong on November 29, the rebound from the previous day could indicate that the 2-week correction period could. be completed.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trade move involves risk. You should do your own research before making a decision.


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