Bitcoin outperforms altcoins as El Salvador passes bill to recognize BTC as legal tender.
The TIE Weekly Insights (Jun 14, 2021)
Some highlights from last week:
- El Salvador Adopts Bitcoin as Legal Tender After Passing Laws
- Texas Regulators Move To Allow Banks To Custody Crypto Assets
- Ledger Raises $380M for its Crypto Hardware Wallet
- Cryptocurrency Comes to Retirement Plans as Coinbase Teams Up With 401(k) Provider
- Mark Cuban Says Banks Should be Scared of DeFi
- Arrington Capital Launches $100 Million Fund to Invest in Algorand-Based Initiatives
- DeFi Startup InstaDapp Raises $10M in New Funding
- Solana-Based Oxygen Taps Jump Trading in Bid to Be DeFi’s Top ‘Prime Brokerage’
- Polkadot (DOT) is launching on Coinbase Pro
Crypto Topics Trending in the Media this Week
The total cryptocurrency market cap increased by 3.2%, growing from $1.72T to $1.78T throughout the week. This growth can largely be attributed to Bitcoin, as BTC (+9%) was the only major asset to see positive returns over the past 7 days. DOGE (-12.8%) and UNI (-10%) took the biggest hits this week as the majors had a median weekly return of -7.1%. Long term sentiment scores remain positive, despite decreasing over the past few weeks. Trading volume (-20.7%) and Tweet volume (-16%) were down this past week, even with BTC increasing in both metrics.
Weekly Performance of the Crypto Market
Every crypto sector besides Currencies (+2.1%) saw negative returns throughout the week. DeFi experienced the worst performance at -5%.
The price of BTC traded within a 27% range this week, from the low of $31,004 to the high of $39,396. Short term sentiment flipped from positive to negative multiple times throughout the week. Despite a few significant developments taking place, there was one event that gained the most attention. El Salvador president has created and passed a bill to recognize Bitcoin as legal tender in the country.
Bitcoin has seen tremendous growth in social activity throughout the first half of the year. BTC has gone from averaging 48.7k Tweets a day in January, to now averaging 103.1k per day, an increase of 111%.
There have been a number of recent developments in the Algorand ecosystem that have sparked excitement, as Arrington Capital has launched a $100M fund to invest in Algorand based initiatives. Additionally, ALGO has introduced NFTs and launched Channel Manager, a new solution to issue and digitize NFTs. This announcement caused Tweet volume to surge by 70%, from 877 to 1,488.
Not only has the price of SOL increased rapidly this year, but so has the Solana community on social media. There are now nearly 7,000 Tweets sent out about Solana on a daily basis. This is after filtering out bots and spam Tweets.
Top 10 Coins by Long Term Sentiment
Huobi Token currently has the highest long term sentiment score among all of the assets that we track at The TIE. Coming in second place is Solana, and third place is Celcius.
Long term sentiment score: A measure of how positive or negative conversations on Twitter have been about a particular coin over the last 50 days vs. the previous 200 days. A score above 50 implies that conversations have been more positive during the past 50 days vs. the previous 200. A score below 50 implies that conversations are becoming more negative.