Dominance Debrief: 11/30 – 12/07
Dominating the news this week was a sizable drop in the prices of BTC and ETH, with bitcoin dropping almost $12k to a week low of around $43,000. The sell-off followed a similar scene in the broader market, as fears of the omicron variant spread throughout the economy. For some, this sell-off has shaken the belief that BTC can serve as a hedge against drops in the traditional stock market.
Prices eventually rebounded, with BTC rising above $50,000 for the remainder of the week. Despite the rebound, BTC is now nearly 30% below its all-time high, which it hit just several weeks ago in early November. ETH followed a similar trajectory to BTC, hitting a low near $3,500 after dropping more than 16% between Friday and Saturday morning.
Ethereum in particular is showing a marked recovery amidst strong developments in the larger ecosystem. Over the past week, Ethereum layer 2 TVL reached an ATH of $5.65 billion following skyrocketing user adoption over the past couple of months.