Weekly cryptocurrency market report (04.03.2022)

The situation in the cryptocurrency market remains uncertain, despite speculation about the growing interest in digital assets by Russian oligarchs. As a result of various financial blockades and the SWIFT system being cut off, they would be expected to use blockchain technology, known for its anonymity. However, the EU has already announced tighter regulation of the crypto market, with regulators stating that they will monitor the situation. At the same time, China has managed to virtually eliminate Bitcoin trading within the country, with China's share of BTC transactions falling from 90% a year ago to 10% as of 4 March 2022, according to the People's Bank of China. The measures applied to BTC in China have thus proved effective and confirmed that blocking cryptocurrency trading is possible in the face of strict laws and regulations. US Federal Reserve (FED) Chairman Jerome Powell conveyed during a speech in the Senate that the tragic events in Ukraine highlighted the need to regulate the cryptocurrency market.

Cryptocurrencies have managed to rebound since the panic caused by Ukraine's war with Russia. Bitcoin even temporarily overcame the $45 000 zone. However, this price was not held by the 'king of cryptocurrencies' and an attempt to break out above it was met with a sell-off. Bitcoin is currently trading around $40 700. Similarly, Ethereum, despite positive indicators this week such as the supply of exchanges at historic lows, failed to permanently break through the psychological resistance around $3 000 and stay above it.

The amount of bitcoin on exchanges has fallen by nearly 25% since the beginning of the year, which may indicate potential positive sentiment among long-term investors who send it from exchanges to cold wallets. Additionally, the increase in large transactions (above USD 1 million) that we are seeing may indicate a growing interest in the crypto market among large investors.

Cardano reached a milestone this week by registering 3 million wallets on the network. The number of 'smart contracts' executed in the Cardano blockchain is increasing despite the fall in the price of the ADA token, which is trading nearly 70% below its peaks. This situation confirms the interest not only in the speculation of cryptocurrency prices, but also in their real possibilities in the world of decentralized finance. At the same time, it is worth remembering that the price rally is influenced by many factors and the current macroeconomic circumstances are very uncertain.

Ethereum and Cardano tokens ranked 3rd and 4th, respectively, in the cryptocurrency market this week among the so-called stacked cryptocurrencies in terms of locked-in volume. Stacking is one method of generating passive income in the crypto market and involves not selling the cryptocurrency owned in order to engage it in a blockchain transaction approval mechanism (blocking it on the network). This week, the Luna cryptocurrency overtook Ethereum in terms of staked volume and came in second place. These are obviously not factors that can definitively determine the end of Ethereum's dominance. However, the situation confirms the growing competition and the overall development of the crypto market. The ranking of the volume involved in staking is led by Solana with $35 million blocked.

Ukraine began accepting donations in the Dogecoin cryptocurrency, which was originally created as a joke by the Tesla employee community. At the same time, Elon Musk donated Starlink satellite internet to Ukraine to support the war-stricken country. Despite the expectations of some market participants, this situation did not cause a rally in the price of the cryptocurrency. 

NFT's largest marketplace OpenSea reported $3bn in sales this week, with interest in the industry confirmed by the music industry, including Sony. Currently, the most popular platform supporting the NFT market remains Ethereum