Cryptos Surge

Cryptos Surge With The Relief Rally In Stocks

By RTTNews Staff Writer | Published: 2/23/2022 8:44 AM ET

Cryptocurrencies surged early on Wednesday amidst relief rallies in stocks globally. Asian markets finished in the green. European stocks too are in positive territory. American stock futures too portend gains on opening. Crude Oil Futures and Gold Futures however are in negative territory.

Overall crypto market capitalization has risen to $1.8 trillion as a 4.9 percent overnight surge has pushed most top cryptocurrencies deep into the green zone.

Bitcoin has surged 3.93 percent in the past 24 hours and has traded in the range of $37,449.51 and $39,043.74 in the past 24 hours.

Ethereum too has bounced back to $2,735.95 after oscillating between $2,583.65 and $2,741.37.

The top ranking cryptos gaining more than the overall market are 2nd ranked Ethereum (ETH), 4th ranked BNB(BNB), 6th ranked XRP (XRP), 7th ranked Cardano (ADA), 8th ranked Solana (SOL), 9th ranked Terra (LUNA) and 10th ranked Avalanche (AVAX).

At current levels of market capitalization, Bitcoin (BTC), Ethereum (ETH), BNB (BNB), XRP (XRP), Cardano (ADA), Solana (SOL), Terra (LUNA), Avalanche (AVAX), Dogecoin (DOGE), Polkadot (DOT), TerraUSD (UST), Polygon (MATIC), Litecoin (LTC), Cosmos (ATOM), and TRON (TRX) are the top-ranking crypto coins.

In the tokens category, Tether (USDT), USD Coin (USDC), Binance USD (BUSD), SHIBA INU (SHIB), Crypto.com coin (CRO), Wrapped Bitcoin (WBTC), Dai (DAI), Chainlink (LINK), FTX Token (FTT), UNUS SED LEO (LEO), Uniswap (UNI), Decentraland (MANA), Bitcoin BEP2 (BTCB), The SandBox (SAND) and Axie Infinity (AXS) rank in the order of market capitalization.

In the category-wise market capitalization dominance, Smart Contracts aggregate to 27.71 percent; DeFi is at 7.34 percent; Centralized Exchanges add up to 5.23 percent; Web 3 sums up to 2.78 percent; Research grosses 2.36 percent; NFTs account for 2.17 percent; Memes command 1.88 percent; Scaling enjoys 1.47 percent; Metaverse commands 1.47 percent; Gaming amounts to 1.37 percent; while Decentralized Exchanges follows with 1.30 percent market capitalization.

Stablecoins dropped to 10.33 percent dominance as bullish momentum returned to crypto sphere.

In reports from the East, Thailand’s central bank has announced plans to trial a central bank digital currency in the second quarter of 2022. Reports also indicate that the Thailand Stock Exchange would add support for digital assets that will allow traders to trade with Bitcoin and other popular cryptocurrencies.

In Brazil, a bill to regulate crypto is headed for a Senate vote after receiving an approval from the Senate’s Economic Affairs Committee on Tuesday. The passing of a crypto law is expected to increase the adoption of crypto in the largest Latin American country.

Federal Reserve Governor Lael Brainard, in her recent speech titled “Preparing for the Financial System of the Future,”, at the 2022 U.S. Monetary Policy Forum, elaborated on the evolving digitalization and decentralization of finance. She acknowledged that innovations hold considerable promise to reduce transaction costs and frictions, increase competition, and improve financial inclusion.

The Governor also noted that though crypto platforms facilitate a variety of activities, including lending, trading, and custody of crypto-assets, in some cases it extended outside the traditional regulatory guardrails for investor and consumer protection, market integrity, and transparency.

The Governor also dwelt on the demand for stablecoins, the high degree of concentration among a few dollar-pegged stablecoins, the use of stablecoins as collateral on DeFi and other crypto platforms, and the likely expanded reach of stablecoins in future in payment systems. These developments, she said, made it important to have strong stablecoin governance frameworks to ensure the quality and sufficiency of reserves, and to guard against run risk, settlement risk and systemic risk.

Given the Federal Reserve’s mandate to promote financial stability, any consideration of a CBDC, the Governor said, must include a robust evaluation of its impact on the stability of the financial system.

The bullish momentum apart, crypto world would inevitably have to brace for the churn in the regulatory environment. As more and more jurisdictions take efforts to understand the digitalization, decentralization and transformation of the financial system, it would set the ball rolling for a plethora of rules for managing cryptocurrencies.

Given the lack of territorial limit to crypto sphere, it is hoped that there would be cooperation and collaboration among regulators that does not stifle innovation and also ensures a cleaner crypto world.

For comments and feedback contact: editorial@rttnews.com

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Article written by an RTT News Staff Writer, and posted on the RTT News.com website.

Article reposted on Markethive by Jeffrey Sloe

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