Crypto Market Review, Dec. 20

The stagnation of the market continues as assets are going back and forth while trying to gain some piece of almost nonexistent inflows to the market. However, the majority of cryptocurrencies on the market are in the green zone after losing important resistance levels a few days ago.

Dogecoin beats Coinbase

While both entities have different goals and natures on the market, most Dogecoin users were amused after seeing that a meme token with no intrinsic value or some kind of fundamentals beat one of the biggest companies in the whole industry.

According to CoinMarketCap, Dogecoin’s market capitalization currently sits at $9.8 billion, while Coinbase trades at $7.8 billion. Such a strong drop has been caused by the poor performance of the company’s stock, which lost more than half of its value since September, following the depressing state of the cryptocurrency market and record-breaking outflows of funds from the industry.

As for Dogecoin, despite the poor performance we are witnessing in December, it is still trading above September adn October’s price averages. However, the situation between the two entities may change drastically in the blink of an eye as both COIN stock and DOGE coin are extremely volatile.

Ethereum is back above $1,200

The most recent drop below the price level mentioned in the title was a hit most Ethereum investors did not expect as the price threshold has been a solid foundation for the second-biggest cryptocurrency for the last few weeks.

Unfortunately, the sudden drop of the network activity and the corresponding descent of the burning rate on the network led to the acceleration of the correction on the network. The asset’s value has decreased drastically over the course of the week and has just returned above the average price level.

According to the burning rate, the network activity is slowly recovering as the transaction fee creates more fuel for Ethereum’s burning machine and causes an accelerated supply decrease. However, the on-chain data from Ultrasound.money suggests that the issuance offset is still too low to make Ether deflationary again, which is why we are seeing a continuously growing rather than decreasing supply.

Litecoin’s recovery

In the past two weeks, LTC’s value dropped by more than 20% as investors got slowly tired of the “digital silver’s” anemic performance around the local top and started to actively sell their holdings.

The pre-halving pump that usually starts months prior to the event is usually a prolonged tendency, but in the case of Litecoin, it did not work like it should have, which points us to an unpleasant conclusion: most of LTC’s rally was not based on the halving but on speculative demand.

While the rest of the cryptocurrency market has been coping with enormous losses after the FTX implosion, Litecoin has been rallying upward like nothing was happening in the background, which is why a large number of investors turned their attention toward LTC and gave it a boost that resulted in a 64% return in less than a month.