The crypto borrowing and lending platform Nexo recently provided transparency into exactly how its business makes money. Its lengthy breakdown follows the collapse of numerous high-profile crypto lending firms that were overexposed to defunct projects and businesses. Nexo’s Business Model As Nexo explained in a Twitter thread on Monday, Nexo’s primary business strategy is to facilitate collateralized credit. Its core services include crypto collateralized loans, interest-bearing crypto accounts, and spot, futures, and options trading. Through its Earn product (crypto interest…
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This Week’s Summary
- The Crypto Market ends the week at a total market capitalization of $823 billion.
- Bitcoin is trading at around the same value as last week.
- Ethereum lost more than 5% over the past seven days.
- XRP increased by nearly 6% this past week.
- Almost all altcoins and Metaverse projects are trading in the red.
- The FTX debacle continues to run rampant through the crypto market.
- The DeFi sector decreased the total value protocols (TVL) to around $49 billion.
Crypto Trends 14 – 20 November 2022: Market Analysis and Performance
The crypto market has experienced considerably less volatility than usual this week. However, that’s not all good news considering the significant hit it took last week. The downfall of FTX and Alameda has rippled through the market, bringing many assets to their knees. This week was a mere hangover, with very few cryptocurrencies recovering. Meanwhile, the market capitalization dropped by only $10 billion.
Bitcoin had dropped as low as $15,700 in the wake of FTX’s bankruptcy 10 days ago. It later recovered to reach around $16,500, where it continued to trade throughout this week. The king crypto is far from a steady recovery. This was visible in its clear rejection at $17,000 on Monday.
Nevertheless, BTC’s poor performance is a good reason for some to buy more. It is the case of El Salvador, the only state using Bitcoin as a legal tender. The small state’s president, Nayib Bukele, announced the country will purchase 1 Bitcoin daily, starting 18 November 2022. Moreover, Tron Founder Justin Sun said he would follow El Salvador’s example.
Ethereum dropped more value points this week following a 5% decrease. The second crypto in command is hanging by a thread above the $1,000 threshold. However, its backers can rejoice at the asset’s recovery over the weekend. For instance, ETH is recording a 1% increase over the past 24 hours. It remains to be seen whether it will maintain this trend next week. Currently, ETH is trading at around $1,170.
Altcoins & DeFi
Almost all the altcoins in the top 50 coins by market cap are bleeding. However, very few are recording double-digit losses like they did last week. For example, Solana is down by nearly 9%. Also, Dogecoin, Polkadot, and Polygon are down by almost 6%. Meanwhile, BNB dropped by 4%, Shiba Inu by 3%, and Uniswap by 5%.
Elsewhere, XRP is riding high on the back of a 6% value boost. The coin recovered spectacularly after recording one of its worst weeks this year last Sunday.
The Metaverse sector is in the same sentiment as the rest of the crypto market. For instance, Axie Infinity is down by almost 14%. Elsewhere, Decentraland has decreased by 11%, The Sandbox by 7%, and Theta Network by 1%. Lastly, ApeCoin is closing the week in the green after a nearly 8% increase.
Crypto Market Analysis – What’s in the News?
- Crypto lender Genesis tried but failed to get $1B in emergency funds.
- Kraken’s new CEO said SBF and FTX are “frauds and thieves.”
- BlockFi may file for bankruptcy after FTX collapse, according to this report.
Next Week’s Crypto Market Forecast
The crypto market is still groggy following the events of 10 days ago. The collapse of FTX and Alameda led to other projects losing stability, investors losing credibility, and skeptics emitting apocalyptic scenarios. Fortunately, this is not the first disaster in the history of the crypto market. And, as we have previously seen, the market and its assets eventually recover and surpass expectations. We’ll only have to wait and see how long it will take them this time.