Bitcoin, Ethereum, Dogecoin Trade Largely Muted As Action Shifts To L1s And DeFi

Bitcoin BTC/USD is taking a breather after running up yesterday as the global cryptocurrency market capitalization rose 0.65% to $2.29 trillion.

What Happened: The apex coin traded 1.26% lower at $54,144.86 over 24 hours. Over a seven-day trailing period, BTC has fallen 23.69%.

Ethereum ETH/USD, the second-largest cryptocurrency by market cap, was up 1.95% over 24 hours to $3,611.94. For the week, ETH is up 19.58%.

Shiba Inu-themed Dogecoin DOGE/USD traded 0.85% higher at $0.25 over 24-hours. Over the last seven days, it has risen 20.99%.

See Also: How To Buy Bitcoin (BTC)

Self-described DOGE-Killer, SHIBA INU (SHIB), pulled breaks on a spectacular rally, falling 21.67% to $0.00002335. Over the last seven days, SHIB has gained 220.44%.
SHIB fell 21.74% and 24.05% respectively against BTC and ETH.

The top gainer over 24 hours was Fantom (FTM), which soared 22.43% over 24 hours to $2.01. FTM has spiked 64.57% over the week.

Why It Matters: Delphi Digital, an independent research company, noted that as BTC takes a breather, Layer 1 projects and Decentralized Finance are once again in the limelight.

“Flows from Ethereum to Fantom averaged $10-25M per day over September. But over the last two days, flows to Fantom increased by an unprecedented amount on the back of a new yield farm,” Delphi Digital wrote in a market update.

Algorand (ALGO), Avalanche (AVAX), and FTM have all increased total value locked over the last 40 days, as per Delphi Digital. The common link among all these projects is announcements of incentives that attract yield farmers.

The recent BTC rally was attributed to a large buy order, with whales, or a single whale, purchasing nearly $1.6 billion worth of the cryptocurrency on a centralized exchange in just five minutes, as per CryptoQuant, an on-chain analysis firm.

Some analysts though are pointing to the futures market and advocating caution.

QCP Capital, a Singapore-based digital economy trading firm, said that they have seen “bearish-type trades with the spot rally” in the futures segment, reported CoinDesk.

“A total of 1,200x BTC end-October BTC calls were sold yesterday, followed by the buying of over 500x of 50/45k end-October put spread today. In the very short term, we might see some corrective price action in BTC.”

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