As the world starts to take notice of Blockchain and cryptocurrency, the market capitalization of the crypto market has stayed above $130 billion mark. While Bitcoin has gained over 3% in the past week, the fears of revival of the bear seems to be diminishing. Nevertheless, the accumulation period can keep the prolong for sometime before the bulls revive the price towards 2017 levels again.
Bitcoin Gains Institutional Support, Price Enters a State of Non-Volatility
Reports of Fidelity Digital Assets who have begun providing their custody services to some eligible clients come as a piece of positive news for Bitcoin. Moreover, the market had revived from the sudden bear movement 24th February 2019 when BTC broke from the $4150-4200 in flash crash of almost 10%.
The price action on Bitcoin was decisive during the week as well; Bitcoin revived from the $3700 to test the $4000 level. The bulls are eyeing $4400 as their next target. Nevertheless, $3950 is acting as a massive resistance from which Bitcoin has broken down twice down to $3875. The price now is trading above $3900.
The 24-hour volume on BTC, however, has returned to the January 2019 levels when the fear of a new bottom in Bitcoin was a prevailing sentiment. While the bears cannot be ruled out entirely the price seems to hold steady above the $3700. Moreover, the amount of Bitcoin has stayed in the $3000-$4000 range since the past quarter which has attributed to its stability.
Ethereum Still Has a Long Road of Development Ahead
While the price of Ethereum corrected from its yearly high of $164 to $137 post the Constantinople update. The market sentiment of Ethereum has increased since the beginning of the year. Implementation of sharding and PoS is expected to be rolled out by 2020 in the Serenity Update.
Most of the other Dapps (Decentralized Application) platforms like EOS, Tron, and Cardano have had the opportunity to learn from the mistakes of Ethereum. The new age platforms have higher transaction capability and offer greater functionality as well. Nevertheless, the number of ERC-20 tokens have had their faith revived in the network with the implementation of its first update.
I personally am definitely uncomfortable making a "moon or bust" shot because there are plenty of possible future worlds where ETH is the #1 cryptocurrency at a price of $100 and we need to survive there too and provide the value that people expect blockchains to provide.
— Vitalik Non-giver of Ether (@VitalikButerin) March 8, 2019
Post Constantinople update the rewards to miners have decreased by 33%, nevertheless, the price is holding above the 30% level it had begun the year with. Vitalik Buterin’s conviction towards the development and success of Ethereum also restored investor confidence as a research report by Delphi Digital analyses the state of the network post ‘Serenity’ update.
Litecoin Trades in the Green while traders await a fresh break out
Litecoin, on the other hand, continues to ascend looking to test the $60 mark. The fundamental for Litecoin have increased tremendously due to its transaction capabilities and newly found perseverance towards fungibility. The price of Litecoin has gained 21% over the week; it was trading at $47.6, while the price at the time of writing is $57.6.
Litecoin has surpassed the total market capitalization of EOS and is poised at number 4 according to coinmarketcap. The top four cryptocurrencies by total market capitalization are Bitcoin, Ethereum, XRP, and Litecoin.
— The Lite School ⚡️ (@theliteschool) March 7, 2019
Can Cryptocurrencies Survive the Challenge Posed by ‘Stablecoins’?
Many Financial Institutions and Governments have expressed interest in releasing their stablecoin. After the release of JPM coin, the market sentiments towards Blockchain has increased tremendously, but it also raised doubts about the utility and the advantage of using a centralized cryptocurrency which will lack interoperability and would act just like a digital FIAT or ‘IOU.’
The market sentiments seemed to have revived towards two other cryptocurrencies providing solutions to centralized currencies through Blockchain and their decentralized token; XLM and XRP. Ripple and R3 also continue to establish partnerships throughout the world.
BCH is also trading in the $135 range. The other most exciting price action was observed in Binance Coin (BNB), which has traded 28% higher since last week. The Binance DEX with valuable partnerships and a dedicated PR team continues to gain business for the exchange platform. Binance also entered the top 10 cryptocurrencies by market capitalization and is ranked 7th with a market of over 2 billion dollars.
Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com