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This Week’s Summary
- The cryptocurrency market looks to end the week at a total market capitalization of $2,066 trillion.
- Bitcoin (BITCOMP) is down by nearly 9% despite becoming legal tender in El Salvador.
- Ethereum (ETH-X) lost 13% in value over the week.
- XRP (XRP-X) is down by roughly 14% in comparison with last Sunday.
- Most altcoins, except Solana, have traded in the red for most of the week.
- The DeFi sector lost almost $10 billion from the total value protocols (TVL).
Cryptocurrency Trends for the Week of Sept. 6-12, 2021: Market Analysis and Performance
It’s been a disappointing week for most cryptocurrencies despite seeing the king crypto becoming legal in El Salvador. Furthermore, most altcoins bled heavily for the past seven days, and the market capitalization dropped by more than $200 billion. Now, it is still above $2 trillion, but not by much.
This week, El Salvador made history by being the first country in the world to accept Bitcoin as legal tender. The small Central American state even named the officialization date “Bitcoin Day.” Unfortunately, as soon as that day started, the crypto market experienced massive volatility.
What should have been a joyous day quickly turned into a nightmare for most cryptocurrencies. For instance, Bitcoin dropped by no less than $10,000 in just a few hours. Then, Ethereum followed course together with XRP, Cardano (ADA-X), and all of the recent overachievers.
As the week rolled on, a shy wave of stabilization settled on the market. Some cryptos managed to recover, but none of them spectacularly. At the time of this writing, BTC records a 1% increase over the past 24 hours. After climbing above $50,000 last week, Bitcoin has been recently trading at around $45,875.
Altcoins & DeFi
Ethereum was so close to trading again above $4,000. However, the market volatility had other plans for the second crypto in command. Ethereum has been recently trading at around $3,412. That’s $500 less than last week, but a 4% increase over the previous 24 hours should bring hope to its investors.
Ripple’s XRP is continuing its drop, which should soon lead beneath the $1 threshold. After another disappointing week, XRP has been recently trading at around $1.10. Cardano didn’t manage to overcome this week’s turbulence, even if it has nothing to do with BTC’s legalization in El Salvador. After bleeding consistently, ADA has been recently trading at around $2.66, far from its recent all-time high (ATH) at $3.10.
Elsewhere, Polkadot is up by almost 3%, Binance Coin (BNB-X) is down by more than 15%, and the once-joke token, Dogecoin (DOGE-X), is also down by roughly 18%. Despite all the gloom hovering over the crypto market, this week was successful for one altcoin. Solana is riding high as if volatility can’t touch it. After another spectacular 32% value boost, Solana (SOL-X) has been recently trading at around $177.
The DeFi sector lost roughly $10 billion in total value protocols (TVL), now standing at nearly $88.3 billion.
What’s in the News?
- UK Post Office offers crypto purchases through EasyID next week.
- MasterCard (MA) acquires CipherTrace to monitor cryptocurrencies.
- Moonbeam collaborates with Lido to bring liquid staking to Polkadot.
- Bitcoin could collapse sooner or later, warns Swedish Central Bank Governor.
Next Week’s Market Forecast
After a good start to September, the crypto market plummeted. In the second week of autumn, most cryptos lost nearly all their August gains. It’s still early to say where this volatility wave will lead or end. Still, we can only hope that BTC & co. will be back trading in the green next week.
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