Weekly Data Report for 9 to 15 May


The Market Continued to Decline.

Abstract: The market continued to decline over the pastweek. Terraform Labs proposed issuing 1 billion new tokens to compensate LUNA and UST holders after UST lost its peg to the US dollar; UST’s depegging triggered regulation debates from some governments over stablecoins. The US Treasury Secretary Janet Yellen indicated that a comprehensive framework for stablecoins is needed. The crypto Fear and Greed index fell to 14 (“extreme fear” territory).

  • Total market value declined. Last week, the total market value of digital assets declined to around US$1.29 trillion. Bitcoin traded within the US$30,000 range.
  • Most of the top 100 digital assets fell. Last week, among the top 100 digital assets, 97 witnessed decline, while 3 staged growth.
  • Exchange turnover increased. Last week, turnover on the 10 exchanges tracked by us rose by 97.7%. Binance moved up by +96.4%. Bitfinex, Bitstamp and Coinbase recorded increase of +80.7%, +128.4% and +85.5%, respectively.
  • Turnover of futures increased. Turnover of Bitcoin futures and Ethereum futures rose by 68.5% and 87% respectively.
  • Turnover of DEXes increased to approximately US$40 billion. The weekly turnover of DEXes grew by 73% as compared to last week.
  • Turnover of OpenSea decreased to approximately US$1.11 billion, down by 31% as compared to last week.
  • The market tumbled. Total market value of digital assets went down to approximately US$1290 billion last week. Bitcoin fluctuated in a narrow range at approximately US$30,000, with an increase in the turnover. Spot turnover increased by approximately 79% while turnover of Bitcoin futures and Ethereum futures rose by 68.5% and 87% respectively. Subsequent to UST dollar depegging last week, Do Kwon has tabled a new proposal to revive and issue 1 billion new tokens, in which 400 million UST would go toward LUNA holders who held the asset before the depegging event; 400 million units would go towards UST holders, 100 million units would be allocated to LUNA holders just before the chain halted operations and the remaining 100 million units would be reserved for future ecological development. The proposal is currently under consideration. CZ replied by arguing that hardfork would not have much effect and BTC reserve should be used to repurchase UST so as to support the price. LFG indicated that the priority is to compensate small wallets. The incident has drawn the attention of some governments to the regulation of stablecoins: US lawmakers stated that stablecoin has to be backed by US dollars, and with funding and disclosure requirements. The US Treasury Secretary Yellen indicated that a comprehensive framework for stablecoins is needed. The US Department of Treasury stepped up its efforts to produce the risk report related to stablecoins. With weak performance of mainstream coins, the crypto fear and greed index fell to 14 (“extreme fear” territory), and the market is expected to hover at a low level under macro environment factors over the coming weeks.

 

Digital Currency Market Capitalization Change:

Source: HashKey Capital Research, Coin360

Bitcoin Futures Daily Trading Volume:

 

Source: HashKey Capital Research, The Block

 

 

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