Image Source: Pixabay

This Week’s Summary

• The cryptocurrency market looks to end the week at a total market capitalization of $1,215 trillion.
• Bitcoin goes below $30,000 following a 2% drop this week.
• Ethereum lost almost 11% of its value over the past seven days.
• XRP decreased by nearly 7% this past week.
• Almost all altcoins are trading in the red, with very few exceptions.
• Terra 2.0 launched and surged to $30 before dropping to $4 in less than 24 hours.
• The DeFi sector lost over $2 billion from the Total Value Locked in protocols, which now stands at $54.27 billion.

Cryptocurrency Trends for the Week of May 23-29, 2022: Market Analysis and Performance

The crypto market is nowhere near where it was a year ago, soaring past the $2 trillion mark and seeing Bitcoin reach $60,000. On the contrary, almost all its assets are bleeding by the day, and the market cap struggles to remain above $1 trillion. This week, the overall market capitalization dropped by over $60 billion.

Bitcoin’s hopes of staying above $30,000 in this bloodbath have disappeared after another disappointing week. In fact, the king coin has been losing value for the ninth consecutive week. And unfortunately, the silver linings are missing entirely. Not even the fact that the BTC dominance has surged this week can help restore the investors’ optimism. Recently, Bitcoin has been trading at a little above $29,000.

Ethereum is also losing precious value by the hour, following another week with a two-digit percentage drop. Last week, the second crypto in command was still hanging by its teeth to the $2,000 level. This time around, it has been recently trading at approximately $1,800.

Altcoins & DeFi

The most anticipated event of the week was the launch of Terra 2.0 on Saturday, May 28. LUNA was gearing for a second reign after registering the worst crypto downfall this year. And, upon its launch, it seemed that its story would have a happier ending this time. More precisely, the coin’s value surged as high as $30 immediately after it went live.

Unfortunately, the fairy tale didn’t last for too long. In less than 24 hours, LUNA fell to $4, imitating a pump & dump trajectory. Then, it stabilized at around $6, where it has been recently trading at. However, the jury’s still out on where it will continue from here.

Elsewhere, most altcoins are trading in the red. For example, XRP dropped by 7% this week. Also, Cardano is down by over 11%, and Solana’s value hit a new low, following a 13% loss. Meanwhile, Avalanche and NEAR Protocol dropped by almost 17% each.

The Metaverse is another crypto market sector losing value by the hour. For example, Decentraland lost almost 12% of its value this week, and ApeCoin decreased by 22%. The Sandbox and Axie Infinity experienced a similarly dire fate with 4% and 14% drops, respectively.

The DeFi sector lost over $2 billion from the total value protocols (TVL), which now stands at nearly $54.27 billion.

What’s in the News?

• The Portuguese Parliament rejected two bills calling for crypto taxation.
• India leads 26 other countries in terms of Play-to-Earn adoption.
• Cynthia Lummis dropped a reveal date for landmark crypto legislation.

Next Week’s Crypto Market Forecast

The crypto market closes yet another eventful week. Unfortunately, it wasn’t in the good news or optimistic sense. On the contrary, most assets are drowning in a bloodbath that started nearly two months ago.

Some analysts call it a bump in an otherwise typical trajectory for a young financial market. Others are hinting at a crypto winter with no end in sight. Only time will prove either side right, and, hopefully, it will do so for the former, starting next week.