Crypto Market on May 17:
- Today, the cryptocurrency market cap rose by over 3.5 percent to $1.31 trillion at the time of writing on Tuesday.
- However, since the beginning of the day, the global cryptocurrency market volume has decreased by 0.13% to $84.67 billion.
- A total of $8.67 billion worth of DeFi trades took place, 10.34% of the total crypto market 24-hour volume.
- Stable coin trading volume reached $77.39 billion, accounting for 91.4% of total crypto market volume in 24 hours.
Bitcoin (BTC)
After the token fell last week, cryptocurrencies tumbled and continued on Monday, with bitcoin reversing its gains over the weekend.
During Asian trade on Monday, the world’s largest cryptocurrency, Bitcoin, fell by 5% to around $29,700, sliding along with stocks because of inflation and interest rates.
Crypto markets have been roiled by the collapse of the TerraUSD currency, which was supposedly pegged 1:1 to the dollar but is trading at around 14 cents.
Veterans of the crypto scene believe bitcoin’s current slump is a sign that the asset has reached maturity. During the past month, the correlation between bitcoin and the S&P 500 increased to 0.49, the highest level since October 2021, suggesting that the digital currency has a moderate to strong correlation with traditional stocks.
Ethereum (ETH)
While the aggregate crypto market is relatively sluggish in 2022, Ethereum’s on-chain metrics look promising. Moreover, with increasing capital inflows and on-chain activity, Ethereum’s utility and adoption have increased over the past few months.
In the past 24 hours, the price of Ethereum increased by 4.25% to $2086. However, ETH’s price has declined by 112.17% over the last 7 days. The cryptocurrency is currently ranked second in terms of market capitalization.
Ethereum’s fundamentals are undervalued, and its price is still far below its all-time high, so you might wonder if now is the time to buy the dip before Ethereum begins to rally.
At the moment, Ethereum is going through a buying phase, which was last seen before the 2021 bull market. Currently, buy orders are the most predominant, which indicates that smart money is buying the dip to anticipate higher prices. Therefore, dollar-cost averaging dips might be appropriate; however, further downward movement is still possible.
It seems as though ETH is only a matter of time before it experiences a positive catalyst with the ETH Merge close at hand. As a result, the ETH market might rally even if the broader market stalls in the medium term.
Terra (LUNA)
Within 24 hours, Terra’s governance token, LUNA, declined by 18%, while GALA, AVAX, and DOT declined by 6% and 5%, respectively. LUNA tends to decline more than bitcoin in down markets because they have a higher risk profile.
Despite this, the increase in volume during last week’s sell-off combined with fading volatility could indicate that crypto prices will rise shortly.
Following Terraform Labs’ network meltdown last week, CEO Do Kwon released a “revival plan” for the Terra network. The Kwon proposal is to fork Terra to create a new chain without TerraUSD (UST). The plan may become a reality if token holders approve of it.
Cardano (ADA)
In most altcoins, a daily increase of 6% is not enough to change the mood, though Cardano is one of the exceptions. The market cap continues to peter out below the $1.3 trillion level, and the metric has lost about $500 billion since it began in May. Cardano and Avalanche tumbled five percent, while Solana and Shiba Inu tumbled three percent.
During the last 24 hours, the price of the Cardano token increased by 3.3% to $0.5816. ADA’s price has declined by 13.02% in the last 7 days. Market capitalization ranks it as the 7th biggest crypto asset.
Binance (BNB)
Binance Coin is the only major crypto that hasn’t experienced a significant retracement. Considering Binance Coin’s prices from a bearish point of view, it still lags behind its peers. Bitcoin and Ethereum are the only significant cryptos that have not dropped more than 90% from their all-time highs. BNB barely avoided a 70% drop from its all-time high despite a flash crash last week and new 2022 lows.
In the last 24 hours, the Binance coin price increased by 4.84% to $307. On the other hand, the BNB price has decreased by 4.21% in the last 7 days. In terms of market capitalization, it is currently the fifth largest crypto asset.
