Looking at the winners and losers from last week clearly shows that traders endured serious heat as the total cryptocurrency market capitalization fell 12.7% when Bitcoin fell to $ 41,000. This sharp downward movement dropped the figure from $ 2.37 trillion to $ 1.92 trillion on December 3 and a total of $ 2 billion long. future contracts settled.
Bitcoin (BTC) the price fell 14.6% over the past week, underperforming the overall altcoin market. Part of this unusual movement can be explained by the performance observed in decentralized applications that held up better than most of the market. The data shows Ether (ETH) down 6.0%, Binance Coin (BNB) lost 7.3% and Solana (SUN) fell 7.8%.
This week's top winners include OKEx's OKB (OKB) token and Bitfinex's UNUS (LEO). Perhaps they benefited from not having an entity in the United States because the regulatory uncertainties in the region continue to increase. Additionally, Polygon scale solutions (MATIC) and Algorand (ALGO) benefited from Ethereum's network transaction fees of $ 40 or more.
Terra (LUNA) is listed among the best artists of the past week after his incorporation token burning mechanism significantly reduced the supply. Meanwhile, Stacks (STX), formerly known as Blockstacks, pushed D'Cent wallet Includes support for SIP010 tokens.
Solution sharing had a disappointing week
Among the worst performers are three decentralized exchange solutions: Theta Network (THETA), Filecoin (FILE), and Internet Computer (ICP). They were not alone, as some of the altcoins in the sectors below the top-80 also crashed. Siacoin (SC) suffered a 34% decline and Ankr Network (ANKR) fell 31.8%.
Chiliz (CHZ) suffered direct competition after Binance successfully launched an independent soccer fan token called SANTOS. Chiliz's platform was initially created to host exclusive promotions, services, and voting for its fan tokens, and more recently, the project ventured into the non-expendable NFT market. However, that initiative also lost impact after footballer Neymar launched a collection with NFTStar.
Despite being among the worst performers, decentralized exchange aggregator 1inch Network (1INCH) concluded a Series B investment of $ 175 million round and these funds will be used to expand the usefulness of the protocol.
Tether's premium and futures perpetual premium held up well
The OKEx Tether (USDT) The premium measures the difference between peer-to-peer (P2P) operations based in China and the official currency of the US dollar, and in the last week it decreased slightly.
Currently, the indicator has a reading of 98%, which is slightly bearish, indicating weak demand from cryptocurrency traders to convert cash into stablecoins. Even at its best over the past two months, it did not exceed 99%, so Chinese players have not been enthusiastic about the overall market.
The overall impact of last week's correction was a drop in total futures open interest, down 28% to $ 16.7 billion. However, the move was expected as total market capitalization receded and liquidations worth $ 3.9 billion took place during the week.
More importantly, the funding rates of the Bitcoin and Ethereum futures recovered quickly from the December 3 price drop. Although longs (buyers) and shorts (sellers) are combined at all times in any futures contract, their leverage varies.
Consequently, to balance your risk, exchanges will charge a funding fee to the side that is using the most leverage and this fee will be paid to the opposite side.
The data reveals that a modest downtrend occurred on December 3-4 when the 8-hour finance rate fell below zero. A negative funding rate shows that shorts (seller) were the ones paying the fees, but the move faded as soon as BTC and ETH prices bounced 15% from their lows.
The above data may not look encouraging, but considering that Bitcoin suffered considerable losses this week, the overall market structure held up well. If the situation were worse, a 99% Tether premium or a positive perpetual financing rate would definitely not be expected.
The views and opinions expressed here are solely those of the Author and do not necessarily reflect the views of Cointelegraph. Every investment and commercial movement involves a risk. You should do your own research when making a decision.
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