Cardano and Cosmos add more than 15%
As macroeconomic uncertainty continues to plague the crypto market, Bitcoin is battling to hold the key psychological number of $20K.
The price was pulled down to this level as investors digested last week’s US jobs data, which showed that job openings increased sharply in July. Such strong economic data might be seen as positive, but it suggests that the Federal Reserve is likely to continue the steep rate hikes that have stalled the momentum of the stock and crypto markets. Indeed, one of the only assets to benefit from recent monetary policy is the US dollar, which is inversely correlated with Bitcoin, and hit a fresh 20-year high on Thursday.
Amidst this economic turbulence, Ethereum remains relatively buoyant. The smart contract platform is up 10% ahead of the Merge, and competing blockchains such as Cardano and Cosmos are flashing even bigger gains. Elsewhere, the once left-for-dead Luna Classic is up 100%, and Avalanche has taken a tumble on controversial accusations of aggressive litigation.
This Week’s Highlights
– Ethereum outperforms as Merge countdown begins
– DeFi tokens make double-digit gains
Ethereum outperforms as Merge countdown begins
After years of delays and promises, the biggest moment in Ethereum’s history is now just around the corner
The native token of the leading smart contract platform is up 10% this week, having escaped its correlation with Bitcoin and the stock market ahead of its long-awaited switch to proof-of-stake, otherwise known as The Merge.
Yet The Merge is not the only big upgrade on the horizon. Cardano, which is up 16% on the week, has announced that it will conduct its own hard fork, Vasil, just one week after The Merge date of September 15th.
DeFi tokens make double-digit gains
As Ethereum rises ahead of its big upgrade, protocols built on the blockchain are also feeling the benefit.
Several tokens in the Ethereum ecosystem — including Polygon, Balancer, and Chainlink — are flashing double-digit gains this week, benefiting from both excitement around the Merge and other catalysts such as the embrace of NFTs by big-name brands Ticketmaster and Meta.
In addition, individual protocols are being boosted by their own technical developments. Compound has recently rolled out version 3, and Uniswap has been moving into the NFT space.
Week ahead
Macro concerns are likely to continue looming over the crypto market in the coming week, with the European Central Bank set to deliver a second large rate hike on Thursday, and Fed chair Jerome Powell expected to speak at a conference on the same day.
In addition, global markets could react to escalations of the ongoing energy war between Moscow and the West.
Nevertheless, if last week is any indication, then we could see Ethereum continue to outperform as the first steps of the Merge launch sequence (Bellatrix and Paris) are initiated on Tuesday, September 6th.