Weekly Cryptocurrency Commentary
The global MCAP of cryptos is US$2.89T (a new all time-high), up 10% WoW, and 558% YoY. However, trading volumes were down across the board. Global crypto trading volume was down 3% WoW, while Bitcoin’s volume was down 11% WoW, and Ethereum was down 14% WoW. As trading volumes and Bitcoin prices have had a positive correlation in the past, we are speculating that crypto prices might be due for a correction if volumes continue to decline this week.
Performance of Select Cryptos
Price of mainstream/popular cryptos were up 4% on average last week.
Companies operating in the crypto space are trading at an average EV/R of 20.2x (previously 17.9x).
Key sector developments are listed below:
- – Coinbase (NASDAQ: COIN) is slated to announce Q3-2021 earnings tomorrow. COIN’s results will provide us market insights as they operate the largest crypto exchange in the U.S.
- – In Brazil, a congressman proposed a bill to legalize crypto as a form of payment. If the bill passes, Brazil will become the second country to approve Bitcoin as a legal tender, after El Salvador.