Aave adds more than 40% and Solana shoots 26% higher
Bitcoin breached $48K early last week, briefly turning positive for 2022 before falling to $46K as momentum faded.
The rally was supported by big buyers, including Michael Saylor whose company MicroStrategy has secured a $205 million loan to purchase more Bitcoin, and DeFi developer Do Kwon, who has been adding to his $1.5 billion+ Bitcoin reserves. Nevertheless, the markets couldn’t shake off widespread uncertainty, with Bitcoin consolidating around $46K as regulators in Europe and the US laid out new rules, and one of the biggest crypto hacks ever hit blockchain game Axie Infinity.
Regardless, the Axie Infinity token showed resilience and finished the week with only 3% losses. Meanwhile, Ethereum rose 6% to hit $3.5K on Visa launching an NFT program, Aave added more than 40%, and Solana shot 26% higher on integrations with web browser Opera and NFT marketplace OpenSea.
This Week’s Highlights
– Axie Infinity shows resilience after hackers steal $625M
– Regulatory uncertainty weighs on crypto market
Axie Infinity shows resilience after hackers steal $625M
Despite being hit by one of the largest hacks to date, the token of play-to-earn game Axie Infinity fell only a few percentage points.
On Tuesday, Axie Infinity disclosed that hackers had stolen $625 million from the Ronin Network, an Ethereum-compatible side chain used to process in-game payments. Since then, Ronin has introduced new security measures — replacing the compromised validators and revealing plans to add new validators in coming weeks.
The resilience of the token suggests that these security measures are convincing, although the price is likely to be supported by anticipation about the upcoming game Axie Infinity: Origin.
Regulatory uncertainty weighs on crypto market
The crypto market is under pressure as authorities around the world prepare to roll out new regulation.
In the European Union, lawmakers have targeted crypto transfers with a proposal that industry commentators suggest could erode privacy and hinder innovation.
Across the channel, a new regulatory regime for crypto in the UK is set to be announced in the coming weeks. And in the US, President Joe Biden has released his 2023 budget proposal which allocates $52 million to fight ransomware and combat the “misuse of cryptocurrency.”
Week ahead
As we move into April, hopes are high for a month which has historically brought strong returns for both Bitcoin and stocks.
In the coming week, excitement over the upcoming Ethereum merge and Bitcoin’s growing role in global finance is likely to continue supporting the market.
However, this optimism must contend with broader economic concerns, including fears of a recession which could come to a head on Wednesday when the Federal Reserve releases minutes from its March meeting.