The Crypto Week in Summary
Yuga Labs made NFT history, leaving Layer-1 blockchains reeling while sideways markets gave way to downward momentum following the FED rate cut in this week in crypto.
At a glance:
- Otherdeeds NFT mint broke records and drew heavy DDoS attacks
- SEC doubled down on regulation by enforcement
- Bitcoin decoupled from stocks, then fell back in line after FED meeting
- ApeCoin spiked after Elon Musk changed his PFP to Bored Apes
Top Market Trends:
- Yuga Labs etched itself as a permanent NFT OG as it launched its Metaverse NFT collection, Otherdeeds, which raked in a record $317m in sales and caused gas fees on Ethereum to soar.
- NFT market aggregators Genie and Gem both reported DDoS attacks during the Otherdeed mint while the Solana blockchain experienced a 7-hour outage due to a bot swarm.
- The SEC expanded their crypto enforcement arm by adding 20 investigators, favoring the path of “policing wrongdoing” over providing clear regulations.
- Joe Rogan told his 11 million podcast listeners that he considers Bitcoin to be a valid currency, and compared the phenomenon to when the Internet was built.
Movers and Shakers
Crypto markets were largely sideways to start the week. FED news of a 50 bp rate hike sent markets tumbling on Thursday. Metaverse and NFT tokens plunged after a week of turbulent news and downages surrounding the Yugi Labs mint, while altcoins TRON and HEX led the gainers for the week.
Bitcoin (BTC) uncorrelated from the NASDAQ this week, dropping to $38k as traditional markets rose in anticipation of a likely FED rate increase. BTC then rejoined stock markets in a downward trend on May 5th.
A report published by Bloomberg pointed to Bitcoin becoming a risk-off asset for investors during rising inflation as BTC is steadily separating itself from stock markets and HODLing patterns are taking the edge off the Bitcoin bear market.
- BTC established a new line of resistance at $36,400 following the marketwide downtrend initiated after the FED announcement.
- RSI was tracking at its highest level since April 21 at 45.50 mid week, then dipped to 38.25.
- Block 735,000 was mined this week, signaling the halfway mark to Bitcoin’s 4th halving, after which the inflation rate dips to below 1%.
Altcoins on the Move
Altcoins followed in Bitcoin’s wake this week except for a few outliers, including HEX and Tron on the upside, and many metaverse and NFT tokens posting double digit losses.
- Ethereum (ETH) price fell on Tuesday, consolidated around the $3000 mark, then dipped below $2700 late Thursday.
- ApeCoin (APE) spiked to over $26.00 following the Otherside NFT mint by BYAC creator Yuga Labs, then fell sharply. A brief breakout to $17.10 occurred after Elon Musk changed his profile picture to BYACs, but APE was down -40.70% for the week.
- Cardano (ADA) reversed a month-long downtrend and rose 8% in 24 hours on Thursday, trading above most altcoins. It then hovered close to 15-month lows, with Cardano whales accumulating and fell 7.41% overnight Thursday.
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- Massachusetts business college Bentley announced it would accept Bitcoin, Ethereum, and USDC payments for tuition.
- Fantom Layer-1 blockchain survived a large-scale whale liquidation in its native token, FTM, quelling speculation that it would trigger a wave of liquidations.
- Binance Exchange will be one of Elon Musk’s backers for the $44 billion Twitter takeover, with CEO CZ Binancne hoping to integrate Web3 into the social media platform.
- The ApeCoin community voted in the AIP-22 proposal on May 5th. As a result of the vote, 17.5% of the ApeCoin treasury ($2.5 billion in $APE) will go to stakers.
Spotlight on: STEPN (GMT)
$GMT is the Solana-based token for STEPN, a move-to-earn project that enables users to buy a sneaker NFT that tracks your steps when you walk and pays out in GMT tokens. GMT/USDT saw heavy volume on the Quadency terminal this week, posting $680 million in 24/hour volume on Thursday.
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We Looked Into: Crypto April
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Disclaimer: The content of this article is for general market education and commentary and is not intended to serve as financial, investment, or any other type of advice.