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The search for new stars in the crypto market

The cryptocurrency market demonstrated mixed price dynamics during the week. However, over this period its total capitalization increased by $10 billion to $374 billion, where it last stood in April 2018.

The Bitcoin Dominance Index has already dropped to 58.4%. Usually, this indicates an overall recovery of the crypto market, as it reflects investor demand for altcoins. In many ways, the decline of this share correlates with the growth of the Tether (USDT) capitalization, which exceeded $10bn. The popularity increase of stable coins allows the participants to remain in the sphere of digital currencies, even during sharp corrections.

The Chicago Mercantile Exchange COT report from August 4 to 11 shows a more than twofold decrease in long positions on bitcoin in the Asset Managers section. We can assume that large institutional players still expect a correction after a relatively rapid growth since mid-July.

Over the week, the Chainlink (LINK) showed the strongest performance within the top-10 cryptos, adding more than 40%. Litecoin (LTC) with 9% growth and EOS with 25% growth were also in the green zone. After the news about the partnership between TRON and Waves, the second coin rose by 126% over the week. Very many small cryptocurrencies are showing impressive growth, which also reflects the decline in Bitcoin dominance.

Investors are eager to find another crypto star in the face of a general recovery of the crypto market. A really strong FOMO will start if there are at least a few such names soon. The TOP-10 cryptocurrencies have not changed for a long time, and the rapid invasion by Chainlink has been a breath of fresh air. We can assume that the composition of the top-20 currencies will change significantly in the medium term, which will give a long-awaited impetus for the market.

Author

Alexander Kuptsikevich

Alexander Kuptsikevich, a senior market analyst at FxPro, has been with the company since its foundation. From time to time, he gives commentaries on radio and television. He publishes in major economic and socio-political media.

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