This week in coins: Ethereum outperforms Bitcoin as markets thaw

This week in coins: Ethereum outperforms Bitcoin as markets thaw

This week in coins. Illustration by Mitchell Preffer for Decrypt

Businesses are doing everything they can to stay solvent during the crypto winter — freezing redemptions, laying off employees, cutting spending, filing for bankruptcy, negotiating acquisitions — but those conditions couldn’t stop markets from warming over the past week.

Bitcoin is up 8% in the past seven days to $22,337 as of this writing, but the world’s most popular cryptocurrency has been significantly outperformed by Ethereum, which has exploded 27% to $1,523.

Anticipation of Ethereum’s upcoming network upgrade – the so-called merge – appears to have spurred growth, although Ethereum Classic (a fork of Ethereum based on the original ledger, which records an infamous $55 million DAO hack which was removed from Ethereum by vote), surged 80% to $27 this week. While some buyers are looking to the future, others are feeling nostalgic.

Other smart contract blockchains with high functionality performed well: Solana rose 9% to $40.04, Cardano rose 10% to $0.47, Polkadot rose 9% to $7.25, NEAR Protocol rose 25 % to $4.26 and Avalanche was up 23% to $23.57.

Other notable rallies of the week included Chainlink up 9% to $6.78, Cronos up 9% to $0.12 and Bitcoin Cash up 15% to $121.07.

No leading coins suffered significant weekly losses.

75%

Even as the markets warmed up, there continued to be signs that the crypto winter was far from over. Last week, Celsius joined lender Voyager and crypto hedge fund Three Arrows Capital declare bankruptcy after weeks of bankruptcy rumors. This week Singaporean exchange Zipmex became the latest stop withdrawals—after Vault and Celsius.

In related news, Legion Strategies, a hedge fund affiliated with Anthony Scaramucci’s Skybridge Capital, reports Investor redemptions halted. Legion Strategies owns shares of Sam Bankman-Frieds FTX. About 10% of the fund’s $230 million in assets under management are cryptocurrencies.

Blockchain.com has joined the ranks of Gemini, Coinbase and OpenSea with the announcement mass layoffs These include the closure of Argentina operations and the effective cessation of expansion plans. Coinbase also announced that it was “temporarily switched off” the company’s US affiliate marketing program to cut costs.

On Wednesday, news broke that the electric car maker had Tesla Sold 75% of his bitcoin, valued at approximately $936 million. As early as February 2021, the company Invested $1.5 billion in bitcoin.

Elon Musk may be less optimistic about bitcoin, but he noticed later that Tesla is still holding all of its Dogecoin, which is up about 6% on the week.

The European Central Bank announced this week that interest rates would fall increase by as much as 0.5% as the bloc tries to stem raging inflation, which hit 8.6% in June. It also means the end of the -0.5% negative interest rate offered by the ECB since 2014. The prices of the leading cryptocurrencies all decreased a small hit in the news.

Eventually, both Paraguay and Colombia moved closer to crypto regulation, with Paraguayan lawmakers approving a bill a tax and regulatory environment for crypto miners while Colombia released draft regulations seek public comment.

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