May 2021 In numbers: Bitcoin collapse, Dogecoin clones attack and Polygon explosive growth
Binance Coin (BNB) has lost its position in May. Starting a month at $ 622, the asset reached a maximum of $ 691, and then collapsed to $ 211. As a result of the month, BNB fell by 43% – up to $ 353.
- Designed by the fall of the Bitcoin dominance index of the Altcoin season has positively affected the dynamics of some coins, despite the general correction of the market. Against the background of the rest, Polygon (Matic) stood out, using solution solutions for the second level.
- For a month, Matic has risen in price by 130%, which allowed him to approach the top 10 projects on capitalization. The asset also took the fourth line in terms of blocked funds in the Defi segment ($ 7.6 billion).
- Among other well -known altcoins, Ethereum Classic (ETC) of which in May exceeded $ 175, and Cardano (ADA), which updated the maximum at $ 2.47, showed positive dynamics.
In May, the shares of companies associated with cryptocurrencies were demonstrated in May:
- Coinbase (Coin): -22%;
- Microstrategy (MSTR): -30%;
- Galaxy Digital (GLXY): -40%.
The CANAAN Minar Miner Products Course decreased in May by 36%. During the same period, EBANG securities were yielded by 24%, and Riot Blockchain was 32%. It is obvious and natural that the shares of mining companies are closely correlated with the price of bitcoin.
Market moods, correlations, user activity
- Against the backdrop of the fall of bitcoin, the fear and greed index reached 10, which is the lowest value since March 2020. For most of the month, “fear” prevailed in the market. The average index in May is 36.9 (in April it was 66).
- Correlation of bitcoin with Ethereum, Litecoin and other cryptoacles is still high. Statistical relationship with the American index S&P 500 decreased from 0.28 to 0.25. The correlation of the first cryptocurrency with gold, as a month ago, is almost absent.
The volume of trading
- In May, the volume of bidding on leading spot exchanges reached a record $ 2.6 trillion. In the context of individual sites, Asian platforms are invariably leading.
- Binance turnover reached $ 1.5 trillion. The trade volume on Huobi amounted to $ 270 billion, OKEX – $ 241 billion. Coinbase had $ 201 billion on the American exchange.
Futures and options
- In May, the combined bitcoin trade volume for the first time in history exceeded $ 2.5 trillion, of which a little more than $ 1 trillion fell on Binance. In the most saturated session on May 19, the daily indicator reached $ 241 billion – then the price of bitcoin dropped 30% during the day – from $ 43,500 to $ 30,000, and on some derivative platforms fell even lower.
- The dynamics of Ethereumfects repeated the Bitcoin script. On May 19, the volume of trading amounted to a record $ 140 billion.
- The May turnover of the Bitcoin Option market amounted to $ 27 billion. The Deribit platform remains the constant leader, which accounted for almost 90% of the trade volume.
- As a result of the correction of the market on May 19, liquidation was positioned by $ 8.6 billion.
- This was reflected in the volume of open positions both in futures and options. The total indicator in the first case decreased from $ 20 billion to $ 11 billion, in the second – from $ 11 billion to $ 6 billion.
- On May 19, financing rates fell into a negative zone, and then stabilized at near -mowl values.
According to the results of May, the total cost of funds blocked in Defi applications (TVL) based on Ethereum amounted to $ 50.4 billion. Against the background of deep correction, the indicator decreased significantly, but did not collapse. This is a sign of growing sector.
The AAVE project surpassed the MAKER Platform on TVL, which can rightfully be considered the “Defi veteran”. As before, the three leaders include landing projects. However, the Compound service “steps on the heels” Polygon platform (before – Matic Network), offering almost instant and extremely cheap transactions.
- In the context of sectors in the Defi-system, as before, lending (47%) and DEX (31%) prevail.
- According to the results of the last month, almost all the most capitalized Defi-tokens fell significantly in price. Terra, Pancakeswap and Compound were deeply sagged from the top-20.
- Against the background of correction, the total cost of tokenized bitcoins naturally decreased-from $ 11.98 billion to $ 8.72 billion (-27%).
- TVL ecosystems based on Binance Smart Chain (BSC) fell from $ 44 billion to $ 27 billion (-38%). The Pancakeswap exchange leads in this segment. The third place in the Defistation rating is Belt Finance, which has been an attacked hacker attack using instant loans.
- In May, the volume of bidding on leading decentralized platforms grew by 140%, reaching a record $ 295 billion. We took into account not only protocols based on Ethereum in the calculations, but also Pancakeswap, which accounted for $ 156 billion.
- After UNISWAP updating to the third version, the monthly sales volume of the platform increased by 100% and exceeded $ 76 billion. Sushiswap (up to $ 23 billion) and three times by 0x (up to $ 12 billion) doubled.
- The share of Uniswap among DEX based on Ethereum increased by 2.3% per month. The launch of the third version with new functions and concepts, including concentrated liquidity, orders of the limit range and multiple positions within the framework of one pool, has positively affected.
- Sushiswap share decreased by 3%. The TOKENLON exchange on the basis of 0x technology, which squeezed Bancor, got into the top 5.
- The total capitalization of stablecoins in May overcame the line of $ 100 billion.
- Tether USDT overcame $ 60 billion. USDC capitalization exceeded $ 20 billion (+500% since January 2021).
- According to Coin Metrics, the USDC stabilcoin proposal has been growing faster than USDT.
Mining, hashrate, commissions
- The total income of Ethereum Mainers jumped in May at 45%-up to $ 2.39 billion, for the first time in history ahead of the corresponding bitcoin indicator. 56.5% fell on awards for blocks, 43.5% – on the commission. Exactly the same ratio was observed and at the end of April.
- The income of miners of the first cryptocurrency in May decreased by 13% – to $ 1.48 billion. The fall of the indicator is observed for the second month in a row. Turning from the produced blocks decreased by 6.8% – from $ 1.46 billion to $ 1.36 billion. The income from the commissions has decreased more than half – from $ 247 million to $ 125.3 million.
- In mid -May, problems with energy supply in Sichuan again appeared again. As a result, the Heshrait bitcoin fell by 20%. By the end of the month, the indicator was restored only partially. The complexity of the production of bitcoin has naturally fell by 16% with respect to the record mark reached on May 13.
- In the second half of May, the interval between the first cryptocurrency blocks stably exceeded 10 minutes. After recalculating complexity, the interval decreased according to Bitinfocharts.
- In May, the average commission for Ethereum transaction updated the anti-record above $ 70. One of the reasons for the growth of the indicator was a hype around Shiba Inu (Shib), a Dogecoin meme clone. Towards the end of the month of the Bitcoin and Ethereum-transaction commission, they fell to the January Do cryptocurrency marks.
- The largest pools for bitcoin mining are F2Pool, Antpool and Poolin. The balance of power in the segment is relatively stable.
- In May, onchain-indicators recorded the largest conclusion from Bitcoin by miners since March 2020 amid the events in China. According to Coin Metrics, market participants used over -the -way platforms.
- In May, the Heshrait Ethereum again updated the historical maximum, but then fell by 8.2%. The growth of the indicator since the beginning of the year amounted to 98%.
Since May 2, Bitcoin miners began to signal about support for Taproot update. They included special “signal bits” in the obtained blocks. The condition for the integration of Taproot will be the production of 90% of these blocks during the period of recalculation of complexity, and the vote takes place until August 11, 2021. As of June 1, pools expressed their readiness, which accounted for 98% of the Heshreyite bitcoin.
You can find out more about Taproot in educational cards forklog.
- Against the backdrop of subsidence, the price of bitcoin prices, the number of addresses of the category “1000 BTC and more” continued to decrease. Over the past month, their number decreased by 3.3%, and in relation to peak on February 6 – by 13.3%. Apparently, large players reluctantly accumulated bitcoin.
- Analysts Glassnode and Chainalysis are sure that the correction was provoked mainly by short -term investors. According to their observations, Hodler only increased purchases during the fall.
- Against the background of bear moods in May, the number of active bitcoin addresses has significantly decreased. In relation to the local peak reached on May 10, the indicator decreased by 30%.
- Last month, it also decreased significantly with the prices of onchain-active. The volume of transactions in the BSC ecosystem reached the historical maximum at the mark of 11.83 million. June 1, the indicator was already 5.2 million (-56%). The volume of Ethereum transactions in relation to the peak reached on May 9 sagged by 25%.
- As of June 1, the volume of blocked funds in the deposit contract Ethereum 2.0 amounted to 5.21 million ETH ($ 13.59 billion at the rate at that time). Stable growth in the indicator indicates the confidence of market participants in future prospects of the new version.
The activity of large players
Among the participants in the Chicago Model Exchange (CME), microfites for Bitcoin are gaining popularity. Open interest indicators and the number of traders are growing. Among large players of the Non-Commercial category, short positions are slightly predominant.
Futures are gaining popularity on Ethereum. Shorts are also prevailing here among the Non-Commercial category traders, Longs from small players. The total number of participants is growing.
On May 13, Microstrategy announced to NASDAQ announced the purchase of 271 BTCs in the amount of $ 15 million. In less than a week, the company additionally purchased 229 BTC for $ 10 million.
Large venture rounds
. Investments were provided by FTX, Digital Currency Group, Fidelity Management, Valor Capital Group and other venture firms;
- The largest cryptocurrency exchange of Latin America Bitso attracted $ 250 million in the round of financing series C. Investors estimated the company at $ 2.2 billion;
- The decentralized Exchange Emiswap attracted $ 104 million investments;
- The Hong Kong Developer NFT-IGR Animoca Brands attracted $ 88.9 million from the Rit Capital Partners, Huobi and other investors Rothschilds Fund;
- Musical NFT Marketplace OneOF attracted $ 63 million from Tezos Foundation;
- Chia Network Inc blockchain. attracted $ 61 million investments, its estimate amounted to $ 500 million. The company planned an exit to an IPO;
- The Polysign block of the Ripple Company, founded by the co-founder, attracted $ 53 million;
- Copper London Castodial Service attracted $ 50 million in the round of financing of the B series;
- The Talos cryptotraining platform attracted $ 40 million from A16Z and other investors;
- The LEDN cryptolending platform attracted $ 30 million from Alan Howard and other investors;
- The HashDex Brazilian Asset Management has attracted $ 26 million from Valor Capital with the participation of SoftBank, Coinbase Ventures and other investors;
- The startup of Solidus Labs specializing in the monitoring of market manipulations in the crypto industry has attracted $ 20 million; from billionaire Mark Kyuban, Coinbase Ventures, Sino Global and other investors; . Goldman Sachs, Blockfi and other investors participated in the round of financing of the series.
Key events in the field of regulation
- The State Duma made amendments to the Civil Code, which will allow the use of cryptocurrencies as a means of contractual payment.
- In 2020, the Central Bank of the Russian Federation, as part of the regulatory “sandbox” tested three services related to cryptocurrencies. The information was revealed by the regulator itself in the annual report.
- Central Bank presented a report on digital tenge. The pilot project is scheduled for the second half of 2021.
- The government examined proposals that will form the basis of a roadmap on the development of the cryptocurrency industry and blockchain technologies.
- The authorities will oblige Bitcoin tenets to report transactions worth more than $ 10,000.
- Cryptocurrency companies will have to transmit customer data for tax control.
- SEC head Gary Gensler called on the Congress to clarify the regulation of cryptocurrency exchanges.
- Legislators ordered cryptocurrency exchanges to request from users documents confirming identity and place of residence, as well as periodically check their relevance.
- Exchange undertake to report on user transactions worth more than $ 1200.
Authorities Thailand From July 1, local Bitcoin-Targi will be obligated to scan chips built into identification cards of citizens when opening new accounts
Authorities Thailand From July 1, local Bitcoin-Biri will be obligated to scan chips built into identification cards of citizens when opening new accounts
Significant events of May
Uniswap launched the third version of the protocol
On May 5, the third version of the Protocol of the Decentralized Uniswap treasure in Ethereum was launched.
Among the main innovations V3 are concentrated liquidity, an order of the limit range and multiple positions within the framework of one pool. Developers also promise to introduce solutions to the second level of Optimism and Arbitrum.
We analyzed the update in detail and talked about its consequences for the DEX segment.
Tesla refused to accept payments in Bitcoin, and Musk discussed with miners the prospects of “green” production of bitcoin
On May 12, Tesla announced the suspension of sales of electric vehicles for bitcoin due to fears regarding the environmental friendliness of mining. According to Ilona Mask, the company is concerned about the rapid increase in the use of fossil fuel during mining and transaction processing:
The company promised not to sell bitcoins with which it owns, and resume sales for digital gold, when mining becomes more environmentally friendly.
Tesla founder Ilon Musk on his Twitter invited users to vote if his company should accept payments in Dogecoin. 78% of respondents supported the idea of a businessman.
On May 25, Ilon Musk met with representatives of mining companies from North America, during which they agreed to create the organization of Bitcoin Mining Council. Its main task will be to reduce greenhouse gas emissions by the industry.
The meeting was organized by the head of Microstrategy Michael Sailor. The founder of Tesla was attended by the heads of Argo Blockchain, BlockCap, Core Scientific, Galaxy Digital, Hive Blockchain, Hut8 Mining, Marathon and Riot Blockchain.
The community met the initiative with criticism. The industry expert Ragnar Liftrasir completely called it destructive for the industry due to the possibility of censorship of blocks obtained without the use of “green” energy.
Vitalik Buterin asked Dogecoin coin
In May, Dogecoin fighters are particularly popular. Among them-in the moment included in the TOP-20 Shiba Inu (Shib), Akita (Akita) and Dogelon Mars (Elon). According to White Paper Shib, the developers sent half the emission to the co -founder of Ethereum Vitalik Butaterin for a personal wallet, implying burning. Representatives of other projects were received similarly. But Buterin considered such a measure incorrect and dangerous in terms of security, hastening to sell coins in the market and provoking their dumps. He sacrificed the proceeds to charitable organizations.
ICP token Dfinity ICP entered the top 5
On May 7, the launch of the Mercury network of the Dfinity project was launched. The Native Token Internet Computer (ICP) was in the listing of the exchange Coinbase Pro, Binance, FTX, Huobi and OKEX.
At the peak, the price reached $ 730, which allowed the ICP to enter the top 5 rating Coinmarketcap. By the end of the month, the price of ICP decreased to $ 100. We talked in detail about Dfinity in educational cards.