An overview of what is happening in the crypto markets, summarised daily by Crypto Finance AG Senior Trader Patrick Heusser in the market commentary.
The market had quite a rough ride over the weekend. Things were bullish on Friday, but all the gains were lost by the end of Sunday. Bitcoin (BTC) traded in the $400 range and was affected the least. Most of the altcoins corrected and consolidated on a supportive level.
Changes in the DeFi sector
DeFi saw another correction: especially the newly launched UNISWAP on the FTX exchange was on a roller coaster ride over the weekend. After its launch on September 17th at roughly $3, we saw highs a day later of approx. $8.50. UNISWAP has also corrected and is trading at $5.54 right now. The DeFi Index, representing some the most popular coins, corrected almost 7% of its high.
The TVL (Total Value Locked) in the DeFi space have reached almost $10bn again, and the ranking (according to TVL) of relevant coins has changed greatly. UNISWAP has taken the lead, followed by AAVE and Curve Finance. It is very impressive to see how the projects gain speed, traction, and overall interest. But choose your project wisely: keep an eye out for new ideas, but “dance near the exit”.
Another important aspect that should not be forgotten is the regulatory side of crypto currencies in general. Switzerland is updating the current legislation to regulate the crypto industry and provide solid ground for blockchain and crypto. The “Blockchain Act” is expected to come into force in early 2021. The European Union will be launching a comprehensive crypto regulation by 2024. We expect to hear much more news on a global basis in the near future.