The weekly crypto close: Monday, 9th December

Crypto market cap hits record high amidst Bitcoin rally.

The cryptocurrency market recorded its fifth consecutive week of growth, as the total market capitalisation climbed by 6.76% to reach US$3.62 trillion. Bitcoin spearheaded this surge, breaking past the significant US$100,000 mark for the first time. The total market cap briefly peaked at US$3.67 trillion last Thursday before a correction brought Bitcoin down to US$90,500. However, strong buying momentum quickly pushed it back above the US$100,000 threshold.

The weekly trading stats as of 9/12/2024 at 11:00am AEDT from Tradingview in USD.

Despite Bitcoin’s record performance, its dominance within the cryptocurrency market declined, falling 2.54% over the week to 55.36%. This reflects a broader trend of investors reallocating profits from Bitcoin into altcoins. From its peak dominance of 61.53% on November 21st, the highest since March 2021, Bitcoin's influence on the overall market has diminished as traders diversify into other digital assets.

Bitcoin reached a weekly high of US$104,088 before dipping, partly driven by heightened trading activity following political unrest in South Korea. A brief martial law declaration triggered significant uncertainty, leading to record-breaking crypto trading volumes in the region.

While volatility has emerged, market sentiment remains overwhelmingly positive. Bitcoin’s strong recovery above US$100,000 underscores its momentum, and the broader cryptocurrency market continues to exhibit robust growth amid these developments. As traders eye altcoins, the market’s diversification hints at sustained enthusiasm for digital assets across the board.

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Ethereum price nears all-time highs as record ETF inflows drive bullish momentum.

Ethereum gained over 8% in a week, closing in on its all-time high of US$4,868. Currently, it’s trading just 21.57% below this peak, positioning itself for a potential breakout. A key factor driving this surge is the record inflow into Ethereum ETFs, with US$428.5 million flowing into these funds in a single day. This marks a significant milestone, as it reflects growing institutional interest and a shift in preference from Bitcoin to Ethereum among investors.

The ETH/BTC ratio has also seen a notable rise, which signals a shift towards Ethereum, possibly indicating the beginning of an "altcoin season," as Bitcoin dominance wanes. If Ethereum manages to break past the yearly resistance level at US$4,093, it could pave the way for a rally towards its all-time high at US$4,868, with further potential gains.

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XRP sees 5th consecutive week of gains, driven by institutional interest and market sentiment.

XRP has posted its fifth consecutive week of gains, rising by 13.41%. The positive performance is driven by several key factors, including the upcoming launch of its stablecoin, RLUSD, which is expected to enhance XRP's utility. Additionally, growing institutional interest is evident, with financial giants Canary and WisdomTree filing for an XRP-based exchange-traded fund (ETF). Political developments, particularly the election of President Trump and the potential appointment of Paul Atkins as SEC chair, have also contributed to positive market sentiment. These changes may lead to a resolution of XRP’s ongoing legal battle with the SEC, which could further boost its stability and growth potential.

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Litecoin price surges following US court ruling on privacy coins.

Litecoin (LTC) climbed to US$147 following a significant US court ruling that overturned sanctions on Tornado Cash, a privacy-focused crypto project. This legal decision, which challenged the US Treasury's authority over such privacy tools, has catalysed a bullish sentiment across several major cryptocurrencies, including Litecoin. As a result, Litecoin saw a 48% increase in value throughout November and has gained an additional 28% in December.

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Compound (COMP) rallies 64% amid DeFi revival, but still 87% below all-time highs.

Compound (COMP) has experienced an impressive rally, rising 64.16% to reach its highest point since April 2022. This upward momentum, which began in November, saw the coin climb by 67%, with a further 61% gain in December alone. However, despite these gains, COMP is still down by 87% from its all-time high of US$910.50, set in May 2021.

The recent surge has sparked speculation among market participants, pointing to a pattern where older tokens like XLM, ALGO, and XRP saw similar price movements after long periods of stagnation. Some believe that DeFi tokens like COMP may follow suit, continuing their recovery.

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Uniswap hits US$38B in trading volume, as price jumps 42%.

Uniswap has reached a major milestone with a record US$38 billion in trading volume for November 2024, marking a 50% rise from the previous month. This surge is mainly driven by Ethereum’s Layer-2 solutions like Arbitrum, Base, and Polygon, which provide faster and more affordable transactions than Ethereum's mainnet. Arbitrum led the charge with US$19.5 billion of the total volume. As a result, Uniswap’s native token, UNI, has skyrocketed 42% in just one week, bringing its market cap close to US$10 billion. The boost in trading activity and token price signals a broader resurgence in decentralised finance (DeFi), with Layer-2 platforms addressing Ethereum's scalability issues and fuelling Uniswap's growth.

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Sui reaches new all-time high after Phantom Wallet integration and strong metrics

Sui (SUI) has surged this week, hitting a new all-time high (ATH) of US$4.49, a rise of more than 21%. The rally was driven by the news that Phantom Wallet, a popular Solana-native wallet with over 7 million active users, will integrate with Sui’s Layer-1 blockchain. This integration is seen as a key milestone for Sui, expanding its reach and enhancing its features for the Web3 community. With Phantom’s large user base now able to interact with Sui’s blockchain, this move is poised to further boost Sui’s scalability and adoption.

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Chainlink price hits 2022 highs, driven by whale activity and strong on-chain signals.

Chainlink (LINK) has reached its highest price since January 2022, peaking at US$27. This marks its third consecutive week of growth and has seen its market cap rise above US$16 billion. A key factor driving the rally is whale accumulation, with large transactions across various exchanges fuelling the bullish sentiment. Whale activity is often seen as a positive signal in the market, as it typically indicates growing confidence in the asset. The price increase is further supported by solid on-chain metrics, with crypto analytics firm Santiment noting the absence of significant "fear of missing out" (FOMO) in the market, suggesting a more sustainable upward trend.

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Market outlook.

In the U.S., optimism for the cryptocurrency sector is growing with recent key appointments. Paul Atkins, known for his pro-market stance, has been appointed as the new SEC Chair. He is expected to advocate for crypto-friendly policies that could provide much-needed regulatory clarity and support the industry’s growth.

Additionally, U.S. President-elect Donald Trump has appointed former PayPal COO David Sacks as his "White House A.I. & Crypto Czar." In this role, Sacks is expected to help develop a legal framework for the crypto industry, aiming to provide the clarity that the sector has long sought. This appointment signals a stronger focus on fostering a more supportive regulatory environment for cryptocurrency in the U.S.

Further adding to the momentum, the National Centre for Public Policy Research (NCPPR) has proposed that Microsoft and Amazon incorporate Bitcoin into their corporate treasuries. Following the example of companies like MicroStrategy, the proposal recommends these firms consider Bitcoin as part of their balance sheets to preserve and potentially enhance the value of their corporate treasuries.

On the institutional side, BlackRock has become a major player in the crypto space, with over US$1 billion in inflows into Bitcoin and Ethereum ETFs. BlackRock’s Bitcoin fund now holds more than US$51 billion worth of Bitcoin. Additionally, U.S. spot Bitcoin ETFs have surpassed 1.1 million BTC, more than the holdings of Bitcoin’s creator, Satoshi Nakamoto, marking a key milestone. With these developments, Bitcoin's market sentiment remains bullish.

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