The bloodbath continues across the broader crypto market as Russia invades Ukraine. Overall trading volume has dropped sharply, leading to a significant decrease in the global crypto market cap.
Bitcoin Continues Its Downward Spiral
Bitcoin (BTC) plunged by more than 15% in the past seven days amid the increasing tension between Russia and Ukraine. With Putin announcing a “special military operation,” both crypto and stock markets have dropped sharply.
Today’s early morning missile attacks across several areas of Ukraine have impacted trader sentiment negatively, thus creating an extremely unpredictable and volatile market.
With the Crypto Fear & Greed Index now hovering around 23 (extreme fear), BTC has lost almost 5% in the day’s trading session. Glassnode has reported that the percentage of BTC entities in profit has severely dropped recently and is currently below 70%, which means that more than 30% BTC holders are now in a loss.
Weekly data from Arcane Research shows that the BTC trading volume has continued to decrease this week, reaching its lowest value in roughly 14 months. Earlier this week, the daily trading volume was just $1.7 billion, implying that the underlying network is becoming more inactive and that traders are no longer concerned about the BTC FOMO (fear of missing out).
Terra Holds Ground; Anchor Protocol Rallies Up
Over the past seven days, almost every crypto coin in the top-ten list has lost significant value. However, amid this bloodbath, Terra (LUNA) has fared better than most when it comes to withstanding the negative impacts of the war cries between Russia and Ukraine.
The value of LUNA has rallied nearly 15% this week, skyrocketing from $48 to $55, thus positioning itself among the top gainers of this week. It is now the ninth-largest crypto by market cap, racing past other prominent tokens like AVAX, DOT, and MATIC.
This positive growth is primarily due to rising investor optimism as the Luna Foundation Guard (LFG) that supports the Terra blockchain ecosystem announced that it has raised $1 billion via a token sale from leading institutions like Three Arrows Capital, Jump Crypto, DeFiance Capital, Republic Capital, GSR, Tribe Capital, and several others.
Anchor Protocol (ANC) registered the biggest gain this week, rallying around 40%, while the entire crypto market seems to be on the verge of a deepening crash. Earlier this month, Terraform Labs, the entity behind LUNA and Terra USD (UST) tokens, announced a fresh capital injection of 450 million UST into Anchor Protocol’s reserves, leading to an increased investor appetite.
Altcoins Continue to Bleed Out
Not much has changed since last week when it comes to altcoins. The majority of tokens have lost significant value as the geopolitical tension and inflation take their toll on investors. Ethereum (ETH), the second-largest crypto by market capitalization, has lost more than 18% in the past week.
Other tokens in the top-ten list, too, have suffered significant losses. BNB is down by more than 17%, XRP by more than 19%, and ADA by more than 25%. Overall, the global crypto market cap has dropped by 9.4% in the last 24 hours and is currently hovering around $1.6 trillion.
Memecoins like DOGE and SHIB are also down around 20.5% and 27%, respectively, indicating that the market sentiment is negative and traders are selling continuously to recover losses.
Warner Music and Puma Make Major Web3 Moves
Warner Music Group (WMG) has entered into a strategic partnership with leading P2E blockchain game Splinterlands. As part of this cooperation, both platforms will collaborate to develop unique arcade-style blockchain games for select WMG artists.
Puma, one of the most prominent sports brands, has confirmed purchasing an ENS (Ethereum Name Service) domain for its NFT collection. The company updated its Twitter handle to Puma.eth, letting users know that it is now ready to foray into the growing Web3 ecosystem.
Earlier in 2020, Nike (NKE) too entered the Web3 space by acquiring RTFKT, the virtual sneakers brand, to launch its NFT assets. This was followed by Adidas (ADDYY) signing a partnership deal with BAYC, GMoney, and Punk Comics to launch its ‘Adidas Originals’ on the decentralized web.
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