Morgan Stanley says changing to Proof of Stake might not solve Ethereum's scaling problems. An equity strategist for Morgan Stanley claims Ethereum beacon-mainnet merge will cause demand for graphics processors to plummet in the coming months. The Ethereum platform has been undergoing a parade of testnets preparing for its merge with Beacon Chain. This merge is a move to facilitate the blockchain's transition from operating a Proof of Work model, to Proof of Stake. The PoW consensus model understandably…
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This Week’s Summary
- The Crypto Market ends the week at a total market capitalization of $1,286 trillion.
- Bitcoin manages to withhold the $30k level after a disappointing week.
- Ethereum lost almost 3% of its value over the past seven days.
- XRP decreased by nearly 3% this past week.
- Almost all altcoins are trading in the red, with very few exceptions.
- The DeFi sector lost over $0.3 billion from the Total Value Locked in protocols, which now stands at $56.2 billion.
Crypto Trends 16th to 22nd of May, 2022: Market Analysis and Performance
The crypto market closes another depressing week with most of its assets struggling to make a comeback. This week saw significant losses across the board, and only over the weekend did some of the coins manage to recover. We see a meager increase of only $9 billion in overall market capitalization, not enough to rejoice anyone.
Bitcoin had a terrible week that saw it drop as low as $28,000 on Friday. In recent hours, the king coin has made a surprising recovery. Currently, it sits just above the $30,000 level and struggling to keep it. If it can win only a few hundred dollars in trading value, BTC will have closed the week in the green for the first time in 8 weeks.
Ethereum will most likely finish the week trading in the red again. However, this time around, it will only record a one-digit drop. Compared to previous weeks, when it registered between 20 and 27% losses, ETH is down by only 3%. That’s enough to keep it trading a little above the $2,000 level.
Altcoins & DeFi
Most altcoins are trading in the red, and few can celebrate slight recoveries after a long period of heavy bleeding. For instance, TRON is up by over 9%, and Litecoin increased by 5% this week. Elsewhere, Uniswap is up by almost 3%, and Monero takes the cake with a 12% value boost.
Meanwhile, the other altcoins have to deal with the bad reputation LUNA’s downfall has brought to this sector. For instance, XRP is down by 3%, and Avalanche records an 11% value drop. Also, Polkadot is down by 8%, and Cardano lost nearly 2% over the past seven days.
The Metaverse is another crypto market sector losing value by the hour. For example, Decentraland lost almost 11% of its value this week, and ApeCoin dropped by 6%. Nevertheless, we can notice slight improvements for other projects, such as The Sandbox and Axie Infinity.
Crypto Market Analysis – What’s in the News?
- Cyprus Government prepares crypto and digital assets bills.
- According to this report, crypto is now a popular investment option for European families.
- New MicroStrategy CFO has committed to the company’s Bitcoin HODL plan.
Next Week’s Crypto Market Forecast
After eight intense weeks, the crypto market is finally showing slight signs of recovery. We still have a long way to go until the cryptocurrencies reach stable positions. However, we can at least look at the assets’ trajectories in a better light. Hopefully, next week will bring even more improvements across the board.