Overall Crypto Market Cap Down 1.5%; Bitcoin Regains From Lows

Market capitalization of all crypto assets including stablecoins and tokens declined by 1.5 percent in the past 24 hours to $2.53 trillion. Bitcoin (BTC) is down 3.4 percent at $57,041.33, after touching a 24-hour low of $55,705. Ethereum (ETH) is down 0.25 percent at $4,155.05, after dropping to $3,959 in the past 24 hours. Among the top-100 cryptocurrencies by market capitalization, only around 60 percent are trading higher than previous day’s levels.

With today’s downtrend, Tesla (TSLA) with a market cap of $1.10 trillion has relegated Bitcoin (market cap of $1.08 trillion) by a notch to the 9th rank while Ethereum is continuing in the 15th spot among all assets (as per companiesmarketcap.com).

Notwithstanding the broad-based decline in the prices of most cryptocurrencies, categories like Metaverse, NFT and Memes are witnessing an overnight surge in market capitalization.

Metaverse’s market capitalization has surged by 5 percent in the past 24 hours to $39 billion. Ethereum based token Realm (REALM) ranked 2960, a play to earn metaverse where players can explore & create virtual worlds and games is the best performer with an overnight gain of 54 percent. The top-ranked cryptos making big strides in this space are 28th ranked Decentraland (MANA) which is higher by 9 percent; 49th ranked The Sandbox (SAND) which is higher by 3 percent; and 61st ranked Enjin Coin (ENJIN), up 5 percent.

Market capitalization of the NFT category too has bucked the declining trend to register a 4 percent rise. The surge in this category too is supported by the rally in cryptocurrencies like Decentraland (MANA), The Sandbox (SAND), Enjin Coin (ENJIN) etc.

The stars of the rally viz Decentraland (MANA) and The Sandbox (SAND) have outperformed many other alt coins. MANA has rallied 4800 percent and SAND has increased over 11761 percent in the past year amidst an explosive frenzy in the metaverse space. SAND also touched an all-time high of $4.68 on Thursday.

Other major categories that have bucked the slide in crypto prices are Derivatives (up 8%), Scaling (up 7%), Marketing (up 6%), Analytics (up 4%), Entertainment (up 3.5%) and Privacy (up 3%). Smart Contracts have edged up by 0.35 percent to $763 billion whereas DeFi has added 1.35 percent to $169 billion.

In an instance of regulatory discourse, Tony Richards, Head of Payments Policy of Reserve Bank of Australia dwelt at length on the prospects of distributed-ledger technology, cryptocurrencies, stablecoins, as well as central bank digital currencies. In his address to the Australian Corporate Treasury Association, the official cautioned that global policy action to tackle some of the existing concerns about cryptos like anonymity, energy intensiveness, fad-driven fervor, etc. could result in cryptocurrencies getting relegated to niche use cases.

Ironically, the meme-category cryptocurrencies, of which a few the RBA official remarked as being free of any useful function, have increased in market capitalization by 2.2 percent in the past 24 hours versus the overall decline of 1.5 percent.

Regulatory interest in cryptocurrencies has increased of late with more and more countries issuing guidelines on the scope of cryptocurrency related activities. The govt. of Laos issued guidelines encouraging cryptocurrency mining operations and trading platforms in the nation. Argentina too has enacted a new tax policy for crypto transactions.

The digital asset space has been fascinating not just crypto watchers and prospective investors but also the wider policy making forum. Sooner or later, regulation could catch up with the pace of technological innovation, and disincentivize recessive, retrograde or undesirable dimensions. Till then, the ride could be bumpy.

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