Dominance Debrief: 01/19 – 01/25
The markets have been cold but we aren’t ready to call it the start of ‘crypto winter’ just yet. The price of BTC hit a six month low on Monday, also marking its lowest market dominance (37%) since the first crypto winter in 2018. But in the last 24 hours, BTC gained 14% and is trading at about $36K, adding more than $120B to the crypto market. There has been a brief recovery ahead of Wednesday’s Federal Reserve meeting, but the market still appears to be more volatile than ever.
Having said that, the things that crypto can do now – banking without banks with DeFi, NFTs, even gaming – would blow away the OGs from the last cycle of 2017-2018. Plenty of new people have entered the crypto space, and they aren’t as attached to cryptocurrencies as a veteran crypto investor might be. The sell-off continues and crypto traders expect a rebound of some kind and open up large leverage positions long and when the first support breaks.
“Price is not always indicative of the nascent state of the industry. The cryptocurrency space is unrecognizable to the frothy early 2018 market,” said Michal Cymbalisty, Domination Finance co-founder. “There’s been major adoption from companies and nations alike. There are functional DeFi applications on multiple L1s and plenty of Ethereum L2s are live. So will prices keep going down? Maybe. But will we stop building the future? Absolutely not.”