Last week, the crypto market cap dipped below $850 billion for the first time in almost 18 months. However, the recent jump in digital assets like Solana, Cardano and Polkadot has pushed the total market cap of cryptocurrencies to above $900 billion.
With a price jump of approximately 37%, Solana remained the best-performing digital asset among the top 10 in the last week. Cardano was in the second position with weekly price gains of more than 12%.
In the latest market rebound, the most notable development was a major drop in the market dominance of Bitcoin and Ethereum. BTC’s market dominance stands at around 42%. On the other hand, Ethereum accounts for just 15% of the total crypto market cap.
“We are not seeing a similar cascade in liquidations for altcoins relatively, and they have generally shown strength over the past week or so. This is because Bitcoin and Ethereum are the primary uses of collateral for leveraged positions, and the fact we can see on-chain the various liquidation prices means that a cascade lower can be premeditated. I also think one of the main reasons why we have not seen buy pressure for Bitcoin and Ethereum over the past two weeks is because major buyers can see other peoples’ liquidation levels,” Marcus Sotiriou, an Analyst at GlobalBlock, said.
Despite the reason that Bitcoin regained the price level of $21,000 on Monday, the overall market sentiment around the world’s largest digital asset has remained weak. When BTC touched a low of $17,700 on Saturday, its profitable supply reached the lowest level since December 2020.
“At $17,700 just 49% of the BTC supply was in profit. Historical bear markets have bottomed and consolidated with between 40% and 50% of supply in profit. Bitcoin investors’ conviction is seriously being put to the test,” Glassnode highlighted.
This article was written by Bilal Jafar at www.financemagnates.com.