WMA: Bitcoin and altcoins bounce back as the DeFi TVL surpasses $35B
Get the weekly summary of cryptocurrency market trends, news, and forecasts!
This Week’s Summary
- The Crypto Market ends the week at a total market capitalization of $1,157 trillion.
- Bitcoin increased by nearly 14% over the week to trade again above $38,000.
- Ethereum increased by almost 22% to trade around $1,600.
- XRP increased by roughly 12% to trade above $0.40.
- The DeFi saw an $8 billion increase in total value protocols to reach as high as $35 billion.
Crypto Trends 01st – 07th of February 2021: PERFORMANCE & ANALYSIS
The cryptocurrency market ends one of the best weeks of 2021 so far. After adding more than $200 billion to its value, it closes with more than $1,157 trillion in market capitalization.
However, the good news did not end there. Bitcoin registered a spectacular comeback as it managed to escape the $34,000 trading zone to surge as high as $40,000 on Saturday. In recent hours, it has lost a few points, but it remains stable as it is trading now at around $38,000.
This week’s big winner is, without a doubt, Ethereum. The second crypto by market cap is on a roll for the third week in a row. In the past seven days, it added more than 20% to its value to set a new all-time high (ATH) at $1,756.51 on February 5th. Many don’t expect that record to stand for too long as Ethereum is steadily marching towards the psychological resistance level at $2,000.
Following Bitcoin’s steps, Ethereum lost a few of its recent gains over the weekend, and it is now trading at around $1,565.
XRP increased by almost 12% over the week to trade as high as $0.45. The coin’s resurgence continues for the second week straight, and XRP is trading now at around $0.41.
Following the GameStop stock fiasco last week, the attention of new investors has swerved towards cryptocurrencies. As a result, many digital coins have increased in value exponentially. One of them is Dogecoin, which many see as a joke token. However, the joke is getting serious, as Dogecoin has increased by more than 100% in value over the week. Now, it is knocking hard on the Top-10 crypto door. Dogecoin is now trading at around $0.63, and it owes at least half of its fame from celebrities like Elon Musk and Snoop Dogg and their tweets.
Going back to more serious digital assets, it is worth noting that many altcoins have registered important gains over the past days. Cardano increased by 70%, Binance Coin increased by 62%, Polkadot increased by 23%, and Aave by 52%
Elsewhere, the DeFi sector experienced one of the best periods in history as it bumped the total value protocols (TVL) from $27 to $35 billion. Over the weekend, it lost a couple of billions, but surpassing the $30 billion barriers is still an incredible achievement.
What’s in the News?
- After enabling cryptocurrency support, PayPal registered substantial gains in the 4th Financial Quarter of 2020.
- Cryptocurrency platform OKEx is planning to integrate Bitcoin’s Lightning Network to improve transaction speed and security.
Next Week’s Market Forecast
The next week, the cryptocurrency market should build on the positive, dynamic week ending just now. Adding over $200 billion per week to its market cap value should be a clear sign that the industry is heading in the right direction.
Bitcoin’s comeback and Ethereum’s surge show that a new wave of investors is entering the market to boost its value and credibility.