Weekly Altcoin Market Analysis
It was a tough week for cryptocurrencies, with the influence of governments on the decentralized platform in evidence through the second half of last week.
It was the turn of the South Korean government to wreak havoc on the cryptomarket, with news of South Korea’s justice department’s intentions to ban cryptocurrency trading and shut down the exchanges bringing the cryptocurrencies down a few pegs on Thursday.
Bitcoin slumped to a $12,000 low on the news, with Ripple sliding from $1.957 to a low of $1.5143 before the rebound.
While most of the mainstream cryptos took a dive, Ethereum managed to hold its ground through the week, with the South Korean government’s flip flop on cryptocurrencies having a far less severe impact, with Ethereum falling to a week low $1,083.97 from Thursday’s $1,246.95 open, before hitting $1,349 at the time of writing,
Ethereum’s resilience has justified its 2nd place ranking and has just made it that much more difficult for Ripple to make another move.
Ethereum 1: Ripple 0
It was just over a week ago that Ripple made a splash in the cryptoworld, by overtaking Ethereum and moving into 2nd place by market capitalisation. Expectations were for Ripple to go hot on the heels of Bitcoin and make a move for the number one spot.
Things started to go wrong when Coinbase announced, after plenty of speculation, that they would not be including additional cryptocurrencies on its exchange of the near-term. The slide began and things went from bad to worse on Thursday’s, following the news of the South Korean government looking to bring an end to the cryptocurrency market domestically.
Friday was a better day all round, but Ripple’s gains were less than spectacular, with the recovery from a week low $1.5143 to $2.0602 at the time of writing, not the type of dip and pop returns that we have become accustomed to.
Ripple has not only given up its number 2 spot to Ethereum, but has seen its market cap slump from $128.72bn on 5th January to $81.15 at the time of writing.
Ripple is far from done, with Ripple’s blockchain technology making inroads into the mainstream, but the start of the year has been a punishing one, with Ripple’s XRP sitting well below its record high $3.32
The Best of the Rest
While the top 3 were watched closely by the cryptomarkets, grabbing headlines for the right and wrong reasons, there were some impressive moves elsewhere…
Cardano, ranked 5th by market cap, surged 25% on Friday alone, in the rebound, with Stellar Lumens (XLM) 8th ranked also impressing, hitting $0.697 by Friday’s close, recovering from a Thursday low $0.404.
EOS, ranked 11th, rallied from a start of the week $10.151 to a Friday high $15.24 before closing the week at $13.802 and that included a Thursday low $8.9…
There were some key takeaways from the last week:
- If the cryptocurrency market was a bubble, the Thursday’s moves suggested otherwise. South Korea is a significant market for the cryptocurrencies and the threat of removing the entire existence of the exchanges would have had far more damaging consequences than those seen on Thursday.
- A number of cryptocurrencies were significantly more volatile than others and this is likely to become a feature that investors will play on during times of stress, with the likes of Stellar Lumen, EOS and Cardano yo-yoing over the two days.
- Ethereum price stability was evident and could become the cryptocurrency safe haven of the future with the ICO market becomes more legit after Telegram ICO and Kodak announcement to raise funds via Initial Coin Offering.
- The Bitcoin futures market is having a material influence on Bitcoin and appetite for the altcoins.