The much anticipated rally in the cryptocurrency market appears to have started on Tuesday 25 October. The Ethereum cryptocurrency, second in value in the entire market, was one of the protagonists.
After weeks of very calm prices for major currencies and low volatility in general, analysts were expecting a turnaround for ETH. As we reported on October 21, the calm seemed to be drawing to a close after the aether managed to stay on a stable plane in the weeks following the merger.
Now, with bitcoin rising more than 6% leading the charge, ETH has also experienced an even stronger rebound, in percentage terms. In doing so, she managed to break through a price threshold that had eluded her for more than a month. While this took many traders by surprise, it left quite high negative balances.
The rise in price brings ETH back to its dominant place in the world of smart contracts. With its downfall and subsequent stagnation over the past couple of months, the cryptocurrency Ethereum has been losing ground in this sector, with another platform overtaking it and other big niche players, such as Solana and Cosmos.
Update on DeFi and the NFT market
Aave's token, the fourth most valuable platform in the DeFi market, has also experienced an interesting rally in recent days. As we have seen in the paper, this token has risen sharply within a week and now, with the momentum of the market, it has reached an even higher level.
The DeFi market is in decline this year. At least in terms of total locked value, although this does not necessarily indicate that the Investors have withdrawn their cryptocurrencies from these platforms, despite the constant hacking and loss of value due to the bear market.
Non-fungible tokens (NFTs) also saw a decline in 2022. However, the last few days have seen a notable surge in investor behavior, with Reddit pushing in this direction.
The case of Axie Infinity, on the other hand, is not encouraging. Activity in NFT-based gaming remains very low. And the price of its AXS token reacted negatively as a result.
The crisis continues: national currencies in free fall
As we have discussed in previous newsletters, national currencies have also suffered from the bear market and the general crisis. A case that we have recently commented on, on the Latin American side, is that of Colombia. The devaluation became more evident when compared with bitcoin and the dollar.
But the crisis is not just a Latin American issue. The great powers are also suffering, with the fall of their national currencies and high inflation rates. In some cases, such as in Japan, at record levels. In Germany, too, the situation has raised alarm.
The outlook could worsen, as some economists recently told us about the euro and the pound. Two historically very strong currencies that are now in trouble.
