Bitcoin BTC/USD traded flat over 24 hours as the global cryptocurrency market capitalization shrank 3.3% to $2.26 trillion Sunday evening.
What Happened: The apex coin was up 0.31% at $48,744.71. Bitcoin has plunged 15.62% over a seven-day trailing period.
Comparatively, the second-largest coin Ethereum ETH/USD traded 1.47% higher at $4,130.47. It has fallen 4.8% for the week.
Meme cryptocurrency, Dogecoin DOGE/USD, was down 4.83% at $0.17. Over the last seven days, it has fallen 19.91%.
Self-described DOGE-killer Shiba Inu traded 2.46% lower at $0.0000345. Over a seven-day timeframe, it has lost 13.38% of its value.
Open governance and community interaction focused coin Decred was the top 24-hour gainer at press time, as per CoinMarketCap data. It rose 2.85% to $92.76 in the period and has fallen 12.53% for the week.
Other notable gainers in the 24-hour window were Unus Sed Leo, Bitcoin BEP2, and Algorand.
Unus Sed Leo rose 1.91% to $3.60, Bitcoin BEP2 was up 0.98% to $49,103.07, and Algorand appreciated 5.98% to $1.71.
See Also: How To Buy Bitcoin (BTC)
Why It Matters: The “bloody” Saturday for BTC and altcoins was ushered in due to fear surrounding a hike in interest rates and the Omicron variant of the COVID-19 virus. The unraveling of leveraged bets on account of the weekend worsened the situation.
The weekend’s nervousness has not yet abated. The “Crypto Fear & Greed Index” by Alternative signaled “Extreme Fear” at press time. Last week, the index was on Fear.
The measure of emotions and sentiments for BTC and other large cryptocurrencies attributes 0 to “Extreme Fear” and a value of 100 to “Extreme Greed.” At press time, it was at 16.
Amsterdam-based cryptocurrency trader Michaël Van De Poppe noted the downcast sentiment and said he liked it. Earlier, Van De Poppe had called the bottom.
Both BTC and ETH touched their respective all-time highs on Nov.10. BTC soared to $68,789.63 on that day, while ETH rose to $4,859.50. The decline in BTC during the weekend market rout has been much sharper comparatively. BTC is down 29.09% from all-time high levels, while ETH has lost 15.25%.
When it comes to DeFi dominance, Ethereum may be losing out to other Layer 1 chains particularly Luna, Solana, and Avalanche, noted Marcus Sotiriou, Sales Trader at United Kingdom-based digital asset broker GlobalBlock in an emailed note On Friday.
Sotiriou thinks that trend will continue but the launch of Ethereum 2.0 may be a game-changer.
Chart Depicting Loss Of ETH TVL Dominance — Courtesy Delphi Digital Via GlobalBlock
“Ethereum 2.0, due to launch next year, has the potential to pause this trend though, as it aims to lower Ethereum’s high gas fees – whether the Ethereum team are successful remains to be seen.”
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