The crypotoverse seems to be getting bigger lately because the total market capitalization of cryptocurrencies has surged past a new 5-month high. These were largely contributed by the recent rally in BTC, ETH, and XRP and many altcoins in play.
Data from Coinmarketcap, an advanced crypto tracker firm, revealed that the market capitalization value of the cryptocurrency market stands at $323 billion at the time this report was drafted. BTC played a major role in the crypto market value, contributing about 62% of the whole crypto market capitalization.
What this means: This incredible feat in the crypto market shows global investors and traders are rushing into digital coins, and hedging against inflation-prone assets like currencies. Although the crypto market experienced some slight lows in the past week due to the resurging COVID-19 caseloads, the market seems to have bounced back again.
READ MORE: Why 47% of Bitcoin entities are whales
In the past 48 hours, Bitcoin gained +9% as it nears $11,000 for the first time in 11 months. Additionally, amongst the top 100 highest market capitalized crypto assets, 20 of the 30 projects that have had positive gains in the past day are in the top 40. The past couple of months were all about Defi and altcoins having all the fun. But the narrative has quickly switched back to bitcoin and large-cap assets like Ethereum, Ripple, and Tether.
Bitcoin whale transfers 92,857 BTC worth $1.1 billion
BTC whales have shown historically that they often determine the BTC trend.
Data obtained from Whales Alert, a crypto analytic tracker, shows that a Bitcoin whale has moved 92,857 BTCs valued around N1.09 billion. The BTCs were transferred from one unknown wallet to another unknown wallet, on Thursday.
🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 92,857 #BTC (1,092,603,630 USD) transferred from unknown wallet to unknown wallet
— Whale Alert (@whale_alert) August 6, 2020
Note that BTC whales are on the rise as Bitcoin approaches the $12,000 price level.
Data obtained from Coin360, another crypto analytic firm, have shown that the flagship currency is presently around the $12,000 price level, with a market capitalization of about $219.60 billion
Why this is happening: Global investors and crypto-traders are now cashing in on some of their profits, as the crypto market is washed with cheap money coming from stimulus packages from global central banks.
While it is difficult to predict market movements, BTC whales have shown historically that they often determine the BTC trend.
Quick fact: At the BTC market, investors or traders who own large amounts of bitcoins are typically known as Bitcoin whales. This means that a BTC whale would be an individual or business entity (with a single Bitcoin address) owning around 1000 Bitcoins or more.
As BTC whales accumulate BTCs, bitcoin’s circulating supply reduces, and this can weaken any bearish trend bitcoin finds itself in. Meaning that over time, it’s possible that as BTC approaches its fixed supply of 21 million, the price of BTC will go up, with BTC’s present demand factored in.
The percentage of supply owned by entities holding less than 10 $BTC grew from 5.1% to 13.8% in 5 years, while the percent held by entities with 100-100k BTC declined from 62.9% to 49.8%.
BTC’s Daily Active Addresses continue to climb, and this will be a key fundamental factor in reaching price levels unseen in over two and a half years (January 2018).
Ripple reports 1,760% surge in XRP sales in Q2 2020
The platform is an open-source platform that was created to allow quick and cheap transactions.
Ripple, the leading crypto payment provider and owner of XRP, reported a rise in over-the-counter (OTC) XRP sales, according to its latest earnings result. In specific terms, Ripple sold $32.55 million of its XRP crypto-asset during Q2 2020, marking a 1,760% jump over Q1 2020 poor sales figures.
What is helping XRP sales?
Digitization of global payments is the new norm in the world of Finance. XRP helps in curbing the additional costs related to sending cash payments and can be used as an alternative to pre-funding.
What you should know: Ripple (XRP) plays dual roles as a payment platform and a currency. It is an open-source platform that was created to allow quick and cheap transactions.
Additional notable integrations from Q2 2020 include
Signum Bank, the first fully regulated crypto bank, added XRP to its highly regulated custody solution and financial platform. Also, Zero Hash integrated XRP to its settlement platform, allowing digital asset businesses to access U.S. markets. Zero Hash is a division of Seed CX, a registered CFTC swap execution facility and holder of a New York Department of Financial Services BitLicense.
Swisscom Blockchain, one of the largest telecommunications providers in Europe, successfully launched XRP on its DAPPI platform, enabling enterprise-grade access to the XRP Ledger for a wide array of use cases.
Mobile payments startup, Uphold, also completed the integration of XRP into its wallet.
Number of new Bitcoin wallets hit 3 year-high
BTC remained confidently above $10,000 throughout Week 31.
Bitcoin, the world’s flagship cryptocurrency, is certainly attracting new entrants into its crypto-verse. This is because the number of unique entities appearing for the first time in BTC’s blockchain network is surging. According to Glassnode, this growth rate is the largest seen since late 2017.
The number of unique entities appearing for the first time in the #Bitcoin network is surging.
— glassnode (@glassnode) August 4, 2020
BTC’s Daily Active Address metric, one of the most indicative measurements of future price movement, continues to show improvement over time. August 3 marked the third occurrence of DAA reaching 1.08 million daily addresses since July 1.
What’s happening in the world’s most valuable crypto market?
Note that these three occurrences are the largest respective outputs since January 2018 (2.75 years ago). With this metric continuing to push higher, it will function as great validation that Bitcoin’s price is justified in retesting the $12,000 range sooner rather than later.
BTC has just indicated that the third largest token age consumed spike since April has taken place, indicating a potential short/mid-term price direction change and increased volatility. The last large spike, which occurred on July 27th, was indicative. Following a brief intermission, the rally rose again to $12, 000, before falling down once more. Now, with Bitcoin on a downward slope, this age consumed spike indicates a higher chance of things bouncing back up toward $12,000.
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In the meantime, BTC remained confidently above $10,000 throughout Week 31. Also, Bitcoin’s on-chain fundamentals point to the beginning of a potential bull market, though external market forces could still impact this possibility.