crypto update

Crypto Price Check: Under the Spell

Spell token was the crypto that fared the best last week, with an impressive price increase of 339.1%. A number of other cryptocurrencies also did well, including SHIB (up 233.7%), bitcoin cash ABC (up 71.66%), and stacks token (up 64.2%).

Early in the week, the algorithm managing the Crypto Alpha One portfolio ran and made some adjustments to its investments. Overall, the portfolio performed well during the week and was up 1% and is working its way out of the 6.6% drop seen in August.

The week’s worst-performing coin was avalanche, with a price decrease of 15.3%. OMG network coin experienced a fall from grace after last week’s performance, dropping 14.1%, and cosmos coin declined 12.7%. The week before saw OMG breakthrough it’s all time highs and trend higher – a long only strategy would have seen OMG return 500% this year.

In terms of the big coins, it was a mixed bag. Bitcoin’s value increased by 15.5% and ether went up by 3.6%, but cardano saw a slight decline (down 0.8%).

There’s speculation that the bitcoin price rise is partly due to strange activity in China. $1.6 billion of the cryptocurrency was bought last Wednesday in the space of a few minutes, and all the activity took place on exchanges linked to China.

This saw the price surge almost instantly, leading to questions about potential motivations behind the move. Could it be linked to the economic difficulties China currently faces? Some think there could be a link.

Another China-related story is that Bitmain, a major manufacturer of bitcoin mining equipment, has announced plans to stop shipping its Antminer products to China. This is another sign of how China’s latest crackdown is the most severe yet and could have more major consequences.

It’s been a positive week for the cryptocurrency market in general, but fortunes could be about to change.

The US government is continuing to consider crackdowns, with talks of an executive order that will bring in more rules for cryptocurrencies. These could include greater financial regulation, measures to ensure national security, and an official to coordinate agencies working with cryptocurrencies. If the executive order doesn’t go through, the government will still make its approach for handling cryptocurrencies public, so we’ll soon find out where all this ends.

Still, it’s not all bad news in the US, as the Securities and Exchange Commission (SEC) has approved a new crypto ETF, the Volt Crypto Industry Revolution and Tech ETF. The fund will focus on companies exposed to bitcoin, with around 80% of the portfolio composing of crypto stocks (and more traditional stocks making up the remainder).

A dilemma that the decentralized finance world has faced for a while now is the potential of a Big Login coming (whereby users can log into wallets using a universal login, like Google or Facebook linked accounts).

It seems that Ethereum is now beginning to create its solution: Sign-in With Ethereum. This would allow users to use their Ethereum wallet as a way to identify them and let them log into other services, but while choosing which aspects of their identity (like name or age) they associate with the service. Could this be the future?

There are also a few new projects in the works. The venture capital fund NFX has put together $450 million as part of an initiative for funding crypto gaming projects — it’s specifically looking for projects that bring together web3, crypto, and NFTs. NFX has opted for FAST (founder-friendly, application-driven, software-enabled, transparent) funding, which is different from typical funding as it’s much quicker and simpler. The money will be given to whoever successfully applies first.

In an even bigger deal, Tether has loaned out $1 billion to the crypto lending protocol Celsius Network. This will be welcome news for the project, which Kentucky’s securities regulator recently dealt a cease-and-desist order for breaking laws. Tether has also lent out money to other crypto companies.

Interestingly, a project hoping to enable anyone to rent out NFTs, has received $1.5 million of funding from Animoca Brands, a global developer with a range of crypto and gaming projects under its belts. The project in question, called reNFT, aims to offer smart contracts that will let borrowers “own” NFTs for as long as they want while putting down collateral. Could this be the next stage of the NFT craze?