Crypto Market Outlook – The Trend of Crypto Events On July 3, 2023

Today, July 3, the crypto market indicates an encouraging outlook and positive future for the year’s second half. The market is showing a new beginning with fresh and bubbling energy.

Most crypto assets are green, with significant recovery after the weekend. Hence, the cumulative market cap has pushed higher, with a surge of 1.16% over the past 24 hours.

After battling high volatility last weekend, Bitcoin is struggling to keep up its price trend for the new week. The price of BTC is trying to create strong support at the $30,600 region. 

Similarly, the altcoins recorded slight gains that increased their value over the past day. Also, activities within the stablecoin, DeFi, and the NFT markets are quite impressive at the beginning of this month.

Further, the crypto market is bubbling with exciting news and other events. These are part of the factors that influence the overall market trend.

Current Trend Of The Digital Asset Market

Data from CoinMarketCap reveals that the broader crypto market has hit $1.211 trillion, following an increase of 1.16% over the past day.

The Fear and Greed Index indicator highlights a 61 scale of Greed for the market sentiment. This means that the investors are increasing profits, driving the greed index higher and may push the price upward. 

Also, with the increasing Greed sentiment, price rallies in the crypto market could trigger asset bubbles. This is a situation where crypto asset prices skyrocket above the tokens’ intrinsic value.

Further, the outlook of the crypto market shows that the 24-hour trading volume hit $32.37 billion, with an increase of 25.89%. The trade volume of all the stablecoins makes up about 89.86% of the total crypto market volume over the past day.

Here are the trends of some major market sectors as of July 3.

Bitcoin Market

Bitcoin has been trying to maintain its anchor at the $30,800 level over the past week. But the uncertainty in the market and the forceful moves from the bears have been opposing BTC’s price trend.

As of July 3, the primary crypto asset recorded a slight price surge of 0.32% over the past 24 hours. Bitcoin is trading at $30,623.21 with a market cap of $594.62 billion. The 24-hour trading volume saw a 41.71% increase, with the value hitting $11.74 billion.

On a down-tune of its performance, Bitcoin has lost slightly by 0.34% on its market dominance. BTC’s current dominance over the altcoins is 49.24%. Also, according to CoinMarketCap, Bitcoin is currently the second most trending digital asset in the crypto market after PEPE.

Market Trend for Major Altcoins

The market outlook for the altcoins is quite on the positive track as of July 3. Most altcoins maintain a greenish appearance with different bullish trends over the past day.

Ethereum strived to largely reclaim its value. The price of Ethereum finally crossed the $1,900 mark as the token rode a more bullish force throughout the weekend.

At the time of writing, ETH has experienced a 2.30% surge over 24 hours, with the price trading at $1,961.28. The market cap has shot up to $235.81 billion, with a market dominance of 18.83%. Impressively, the 24-hour trading volume for Ethereum hit $7.82 billion, indicating an increase of 81.59%.

Cardano (ADA) is among the altcoins that saw a greener price trend over the past 24 hours. ADA surged by 2.02% as the price of the tokens reached $0.2946.

Despite its price rally over the last day, Cardano witnessed a drop of 3.82% in its 24-hour trading volume. The value of the trading volume slid to about $194.39 million.

Currently, Cardano maintains the seventh position in the CoinMarketCap ranking of crypto assets with a market cap of $10.29 billion.

Some altcoins with a price surge include Solana (SOL), BNB, XRP, Polygon (MATIC), Polkadot (DOT), Tron (TRX), Litecoin (LTC), Dogecoin (DOGE), and others. They increased by 1.54%, 1.81%, 0.94%, 3.32%, 3.94%, 2.36%, 0.55%, and 0.90%, respectively.

Data from CoinMarketCap highlights Celo (CELO), The Graph (GRT), and Pepe (PEPE) as the three top gainers for the day. The crypto assets witnessed 24-hour price gains are 34.67%, 28.74%, and 18.20%, respectively. Conversely, the day’s top loser is Unus Sed Leo (LEO), with a 24-hour decline of 7.33%.

Decentralized Finance (DeFi) Market

As of July 3, the DeFi market shows a positive outlook on the trend of most coins. The DeFi market shows an increase of 3.39% in market cap over the past 24 hours. The value is currently sitting at $49.44 billion.

Further, the 24-hour trading volume of the DeFi tokens hit $2.78 billion, indicating a rise of 28.37%. The value represents about 8.50% of the total crypto market volume within the past 24 hours.

At the top of the list of DeFi tokens is Wrapped Bitcoin (WBTC), with a market cap of $4.81 billion. Also, WBTC experienced a slight price rally of 0.52% over the past day as the value hits $30.678.34.

Compound (COMP) is among the DeFi tokes that have witnessed a great price surge over the past day. COMP increased by 17.07% within the last 24 hours as the price reached $64.28. Also, Compound recorded over 78% rice in its 7-day price action even as the market cap hit $487.53 million.

Other DeFi coins with positive price increases over the past day include Avalanche (AVAX), Chainlink (LINK), Lido (LDO), Stacks (STX), Rocket Pool (RPL), Maker (MKR), and others.

DeFi tokens with a drop in value in value include Synthetix (SNX), Keep Network (KEEP), Solar (SXP), Aave (AAVE), Uniswap (UNI), and others.

Stablecoin Market

The trend for most assets in the stablecoin market trades without any significant changes as of July 3. The market cap for all the stablecoins dropped by 0.03% over the past 24 hours as the value reached $127.42 billion. 

The 24-hour trading volume grew to $29.94 billion, following an increase of 37,01%. Tether USDT is ranked as the lead in the list of stablecoins with a market cap of $83.34 billion. Its 24-hour trading volume spiked by 34.39% to hit $22,89 billion.

USD Coin (USDC) is keeping its position as the second largest stablecoin by market cap, currently sitting at $27.35 billion. Though most stablecoins kept their holds on their pegged fiat currencies, some coins still de-pegged slightly. 

Some of the stablecoins with a de-pegged value include Dai (DAI), Binance USD (BUSD), TrueUSD (TUSD), USDD, Gemini Dollar (GUSD), Frax (FRAX), and others. 

NFT Market

The non-fungible token (NFT) market shows a gloomy outlook as most collections indicate a decline in their trading volume. The NFT market’s overall market cap is currently sitting at $2,47 billion. 

The 24-hour sales volume plummeted by 24.13% as the value hit $35.33 million. Also, the total number of sales dipped by 12.02% in the past day, with the number reaching 57 029.

Further, the NFTs saw a twist in ranking over the past 24 hours. Azuki, which has maintained the top position, is currently ranking as third. 

The NFT witnessed a drop of 55.34% in its 24-hour trade volume, which slid to 1.908.11 ETH. Also, its average price plummeted by 12.68% to hit 6.0768 ETH.

The popular Bored Ape Yacht Club (BAYC) has resurfaced to the top position. BAYC boasts a 24-hour trading volume of 3,335.12 ETH which declined by 36.92%. 

The average price of BAYC is 29.51 ETH indicating a drop of 8.45% over the past 24 hours. The second NFT is now Mutant Ape Yacht Club (MAYC) which saw a surge of 12.6% in its 24-hour volume as the value hit 2,572.72 ETH.

Crypto Market News And Events For Today

The crypto industry has several news and events that contributed to the overall outlook of the market.

Below are some news and events within the crypto industry as of July 3.

Cardano Founder Charles Hoskinson Criticizes Vitalik Buterin’s Staking Strategy

The co-founder of the Ethereum blockchain, Vitalik Buterin, revealed his staking strategy, thereby receiving a slam from Cardano founder Charles Hoskinson.

Buterin discussed his staking techniques during a podcast interview with Bankless recently. According to Buterin, he only staked a small amount of Ethereum due to the associated complexity with ETH staking.

Ethereum’s co-founder explained that ETH uses the multisig staking approach, which involves some technical complexities for the token. He mentioned that the method is notable for its security features for users.

The multisig staking method for Ethereum is rated among the secure approach for ETH staking. But it comes with several complexities as it requires multiple keys for transactions.

So, establishing the multisig method for staking purposes has been a challenging process with many difficulties. However, Buterin staking portfolio indicated a large amount of staked ADA coins.

Buterin’s revelation triggered several reactions and comments within the crypto community. The founder of the Cardano network Hoskinson indicated a surprised disposition regarding Buterin’s staking strategy and further slammed him.

Hoskinson touted Buterin over the latter’s small amount of staked Ether in his comment. Hoskinson stated he staked all his ADA holdings without keeping any back because he believed in his protocol.

Hoskinson stated that the staking approach from the Ethereum co-founder depicts that the latter had no full confidence in his project.

 Cardano’s founder also mentioned the urgency of tackling similar challenges on the Ethereum Network to ensure its sustainability and continuation in the future.

Further in his interview, Buterin talked about the EigenLayer protocol which would enable the re-staking of Ether. The protocol is still in its testnet phase and will be launched in Q3 2023.

Buterin noted the EigenLayer protocol poses some centralized risks within the Ethereum network. With the system, some ‘Trustworthy stakers’ may get more value than ‘untrustworthy’ ones.

However, there is still a very low possibility of disabling the ‘Trustworthy stakers’ mode. So, such a situation could create a structure where certain users have more dominance.

Gemini Co-Founder Accuses SEC of Pushing Investors To Toxic Crypto Products

Co-founder of Gemini crypto exchange, Cameron Winklevoss, criticized the US Securities and Exchange Commission (SEC) for pushing investors to toxic crypto products following the latter’s refusal to approve a spot Bitcoin ETF.

According to Gemini co-founder, the regulator is forcing investors to dabble into unregulated crypto products with its regulatory stance. 

He noted that the SEC had brought total and utter disaster to US investors with FTX. The Winklevoss twin recalled that it’s now 10 years since they initiated an application for an ETF spot with the SEC. 

However, the regulator has constantly refused to approve spot BTC ETF for many companies that applied. As such, the twin noted that the SEC approach indicates its failure as a regulator.

Further, Winklevoss stated that SEC’s approval denial for a spot Bitcoin ETF is pushing US investors into ‘toxic products such as Grayscale Bitcoin Trust (GBTC). 

The co-founder noted that GBTC trades at a huge Bitcoin price discount and has very high investor fees. Additionally, Winklevoss thinks the SEC actions drove US investors to unregulated crypto exchanges and platforms like FTX.

Subsequently, many investors were caught in the web of FTX implosion, one of the biggest financial frauds recorded in crypto history. Winklevoss criticism is coming after many notable companies filed for a spot in BTC ETF with the SEC, with later renewals and amendments. 

Some firms that submitted such applications include BlackRock, WisdonTree, ARK Invest, Fidelity, Valkryie, Invesco, and others. But the SEC has refused to approve any application, stating that the filings are inadequate and lack clarity.

Bitcoin Sharks And Whales Accumulate More BTC. Could The Rally Continue?

A report from the on-chain data provider Santiment revealed that Bitcoin Sharks and whales had continued their buying spree. 

The data indicated that the accumulation process has continued over the past two weeks. The report is based on the Supply Distribution, an indicator that discloses the total amount of BTC held by each address group. 

The groups are cut out based on the total number of tokens they hold. For instance, the 1-10 coins group includes investors that currently hold between 1 to 10 BTC tokens.

Bitcoin sharks and whales are addresses that hold up to 10 to 10,000 BTC tokens. With the high amount of Bitcoin they hold, sharks and whales could influence the trend in the crypto market.

According to Santiment, the Bitcoin Supply Distribution for sharks and whales witnessed a drop at the beginning of the year. The distribution later bottomed out by mid-April.

However, the address groups for the pair started indicating strong accumulation by June. Santiment reported that BTC sharks and whales amassed about 154,500 BTC coins within the past seven weeks. 

The two groups’ holdings have reached 13 million BTC, representing about 67% of Bitcoin’s circulating token supply.

Floki Inu Sees A Sharp Price Rally On South Korean Top Exchange

One of the trending meme coins, Floki Inu, has witnessed a sharp price surge on the South Korean leading exchange, Bithumb. Impressively, the price of Floki Inu, Shiba Inu’s strong rival, hit a whopping 215% increase on the exchange. 

This surge occurred on Friday, June 30, pushing the meme coin to hit an all-time high of 0.1324 KRW. The recent price rise has created a new record for FLOKI, attracting the attention of many crypto enthusiasts worldwide.

But Floki Inu slid sharply from its peak value to reach 0.0364 in the next few days. The overall performance of the meme coin still reflects a significant feat despite its decline.

Part of the thrilling facts surrounding Floki Inu’s rally is that it occurred only within the South Korean top exchange, Bithumb. The price surge did not cut across other international exchanges. 

Crypto platforms outside South Korea only saw a slight increase of 1.35% in the value of FLOKI during the ATH at Bithumb. Moreover, Bithumb is the only South Korean crypto platform that lists Floki Inu.

According to CoinMarketCap, FLOKI is trading at $0.00002817 at the time of writing. The meme coin indicates an increase of 5.35% over the past 24 hours.

Hut 8 Moves 6,400 Rigs With Increasing Demands For AI And High-Power Computing

A prominent BTC mining company, Hut 8,  keeps relocating more mining rigs. So far, the firm has moved about 6,400 rigs from its dormant North Bay site in Ontario, Canada.

The mining company’s recent relocation of rigs is sparked by the increasing demands for artificial intelligence (AI) and high-power computing surges. 

Before now, Hut 8 is engaged in a lawsuit with Validus Power, its third-party energy supply. The legal battle is revolving around the alleged failure to maintain contractual obligations.

Subsequently, the case between the two firms led to a halt in Hut 8’s operations at its mining site since November 2022. The mining company disclosed that it has already moved about 6,400 miners to Texas in line with its plans to resume operations.

As part of its relocation activities, the mining firm has completed a 3-month hosting agreement with the 6,400 mines from North Bay. Hut 8 plans to introduce a renewal arrangement that would run every month.

In March 2023, Hut 8 relocated 988 miners to its mining facility in Alberta, Canada, called Medicine Hat from North Bay.

Further, the mining firm plan to have the miners’ batch operational by ending of July this year. The rigs are expected to produce a capacity of 600 petahashes per second, which could facilitate Hut 8’s overall hash rate to 3.2 exahashes per second.

The mining firm has also engaged in HPC and AI computing as the crypto space witnessed increased investment in AI and high-performance computing.

PolyNetwork Suspended Following A $5M Exploit

The crypto industry witnessed yet another hack that crossed over multiple blockchains. PolyNetwork suffered an attack on July 2, with the exploiter stealing up to $5.5 million worth of crypto assets.

Following the hack, the network developers stopped all smart contracts on the platform to investigate and solve the cause. Some blockchain security companies such as PeckShield, Dedaub, SlowMist, and Binance Labs have joined in the investigation.

Dedaub has released a technical assessment of the exploit on PolyNetwork. According to the details, PolyNetwork was discovered to be using a simple three-quarter multisig arrangement for the security of its wallets.

The multisig arrangement, which is highly risky, has been in use over the past two years. The assessment report revealed that the exploit occurred due to a compromise on the private keys to the multisig address.

PolkNetwork failed to follow the normal practice of boosting the security of its wallet after a few months. Moreover, it took the firm up to seven hours to halt its smart contracts after the vulnerability on the platform was escalated.

The exploit was completed through 10 different blockchains, affecting over 50 crypto assets. The most affected blockchains include Ethereum, BSC, Heco, and Metis.

The bad actor signed the confirmations for the protocol’s ownership of BNB using the compromised private keys. The attacker then minted crypto assets on some blockchains and later sold them.

But with low liquidity issues, the hacker could not cash out all the minted assets on some blockchains.

Belarus Reconsiders Peer-To-Peer (P2P) Crypto Transactions

The Ministry of Foreign Affairs of Belarus is trying to implement legal amendments to stop P2P transactions for crypto assets like Bitcoin.

The ministry released an official Telegram announcement on July 2 for the new legislation to ban P2P crypto exchange for individual investors.

According to the statement, the ministry is pushing for the move due to the high rate of cybercrimes in the country. It noted that since January this year, Belarus prosecutors had recorded about 27 individuals offering illicit crypto exchange services.

The report disclosed that the illegal activities have generated up to 22 million Belarusian rubies worth $8.7 million. So, the authorities would permit registered crypto exchanges with Belarus Hi-Tech Park (HTP) to handle crypto transactions.

According to the report, fraudsters are in high demand of crypto P2P services to cash out their stolen funds. Also, they use the practice to transfer funds to other people who organize or participate in criminal schemes.