Period: 15th August 2022 – 22nd August 2022
· While there wasn’t important major economic data released last week, bitcoin saw one of its biggest dumps since June 2022. At the same time, traders were hit by $210 million in long liquidations over 24 hours, also one of the biggest liquidation events since then.
· Followed by the liquidations in cryptocurrency, the NFT collections are also at potential liquidation risk, namely Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC). Meanwhile, Pudgy Penguins caught the market’s attention after its announcement of the newly setup Advisory Board.
It has been going on for a few months that the cryptocurrency market is following the footsteps of the US stock markets. When the stock price is moving up, crypto follows (and vice versa). Well, last week was a little bit different. This time, bitcoin is leading the way. On a peaceful Friday afternoon in the Singapore time zone (GMT +8), a sudden sell-off happened without any warning. Bitcoin price plunged from $22,728 to $21,215, or 6.6%, in a short span of 7 minutes. Traders that were holding a long position without setting a stop-loss order mostly had their position liquidated, those who shorted laughed their way to the bank on the other hand. As the risk-off action happened in the crypto market, the S&P 500 followed suit, sliding 1.29% to close at 4,228.48 on Friday. A few days passed yet no one is able to confirm what happened that triggered the sudden dump.
99.9% of altcoins closed their week in loss, except for stablecoins of course, and EOS of all of them cryptos. EOS wasn’t spared on Friday, it slumped by 14.2% in a single day following bitcoin’s crash. However, it managed to recover in 2 days and closed even higher for the week. There wasn’t any news happened over the weekend for this Delegated Proof-of-Stake (DPoS) based blockchain. In fact, the good news actually happened before the crash. Last Wednesday, the creator of EOS blockchain, Block.one’s proposal to pay $27.5 million for a class action lawsuit was denied by court. Frankly $27.5 million is just small money for Block.one of which their coin is currently worth $1.5 billion in market value. The market viewed this as good news for another lawsuit the company is facing at the moment.
Back in December 2021, EOS’s own community revolted and elected to stop ongoing payments of 67 million EOS to Block.one, over claims that the crypto developer is no longer acting in the network’s best interests. As a result of disappointment in the EOS chain that never went up to live to its promises, a group of the EOS community has taken Block.one to court, suing them for $4.1 billion of damages, the exact amount the company raised during its ICO fundraising round in 2018. The court ruling last Wednesday is making it harder for the EOS community to win their case against Block.one.
Despite being the top gainer of the week, EOS was long considered a failed project in the crypto community
The NFT market isn’t doing well either. The giant of all, Bored Ape Yacht Club (BAYC) has wiped all its gain in 2022, the floor price has returned to where it was at the beginning of the year, between 65 ETH to 70 ETH. At the time of writing, BAYC is trading at the lowest of 70 ETH per ape. There is also news reporting that some of the apes that were loaned to lending platform are at risk of liquidation. Now might be a good time if you are planning to scoop some discounted apes.
BendDAO, a web3 lending protocol that allows holders to stake their NFTs as collateral to borrow ETH up to 40% of their floor price (counted as of the time when listing)
While the ape is falling, another animal tends to rise in this bear market. You might have heard of Pudgy Penguins if you are one of the NFT enthusiasts. Launched in July 2021 with a mint price of 0.03 ETH, the penguins have grown more than 100 times a year after their public sale. Coincidently, the Pudgy Penguins community revolted too, just like the EOS community, but to the extent of expelling the founder and buying out the project. The state of Pudgy Penguins now is pretty promising I would say, they have just announced an Advisory Board that consists of big names in the crypto and NFT scene, and even C-level executives working in listed companies such as Meta, Nike, and Starbucks are joining the board. Followed by the announcement, the floor price of these cute penguins pumped immediately and is currently trading at 3.8 ETH.
Pudgy Penguins’ official announcement on Twitter. Look at those big names!
Disclaimer: This article is an update on the top-performing crypto & NFT for the past week. Any views, opinions, research, analyses, or other information contained in this piece is provided as general market commentary and does not constitute investment advice. Every investment involves risk, please conduct your own research when making a decision.
Written by: [Coinlive] Nell