Daily Market Update - August 19, 2020

$BTC 24 Hour High $12,336.27 $BTC 24 Hour Low $11,954.53 $BTC -2.28%

Total Market Cap $386BN (-4.17%)

24 Hour Volume $116 BN (-2.52%)

Notable Movers (REN) (+11.31%)

BTC Dominance 59.2% (+0.34%)

Digital assets market:

  • Markets going through a sell off that saw all top 10 large-cap coins in the red to start the Asia trading session down approximately 3%

  • Digital asset market cap dropped 2.3% to 380B

  • Overall digital assets traded volumes at 59.9B, dropping 1.8% from yesterday

  • $BTC dominance remains below 60% with $ETH and other DeFi tokens seeing increasing activity over the past couple of weeks. Exchanges are seeing a 0.83% drop in $BTC inventory with the renewed interest in the main coin with prices able to maintain within arms reach of 12K. In comparison, exchanges saw the reverse during the Black Thursday sell off five months ago when prices dropped to 4K. Exchanges increased their $BTC inventory by 2% to a high of 2,947,555 $BTC. Support is at 11,800 with 12,200 as its next resistance target. Will need the volumes to pick up to breakthrough these levels.

  • Desk seeing $BTC buy/sell flow increase consistent with current market trends, USDT flow at 60% capacity from payment providers with a small arb window present

  • $ETH down 1% over night to 427 levels,  up 13.5% over the past 5 days with resistance at 429 and support levels at 417. Trading at oversold RSI levels on the bottom Bollinger band 

Alts and DeFi watch:

Over the past few weeks, Yearn.finance community members have been driven by a goal of YFI’s price reaching parity with that of Bitcoin. This goal came to fruition overnight, as the token’s price rocketed to highs of over $12,000 before facing an influx of selling pressure that caused it to dip as low as $9,000. The high price per unit has been widely looked upon as a feature that has benefited its price action, as it has allowed it to stand apart from the deluge of other tokens with more "standard" prices. Now, there is a growing movement amongst YFI governance participants to conduct a token split.

Dumb: The yield-farming craze continues; investors have poured $200 million into a meme coin that’s barely 12 hours old, has no public figurehead, or any audited code. Spaghetti Money offers staking pools in several DeFi tokens, including yEarn (YFI), Maker (MKR), and Compound (COMP). Having only launched ten hours ago, investors have so far staked a total of $203 million in digital assets into its protocol. Total value locked (TVL) had surged $3 million just as CoinDesk was going to press.

Chainlink has been witnessing some intensely bullish price action over the past few weeks and even months, but the cryptocurrency faced a brutal selloff yesterday that caused its price to slide as low as $15.00. Bulls have been absorbing some of this selling pressure, but it is still showing some signs of weakness as it fails to post any large upswing. Despite flashing signs of technical weakness, on-chain data shows that LINK holders – also known as the "LINK Marines" – have been holding strong despite it now being in a precarious position.

The total USD value locked in decentralized finance (DeFi) protocols recently surpassed the $6 billion mark according to onchain data resource, DeFi Pulse. Currently, the figure rests at $6.32 billion, after rising nearly six-fold since it reached the $1 billion mark less than three months ago. The exponential growth seen this year can largely be attributed to the advent of yield farming and the release of Compound protocol. However, Encode Club founder Damir Bandalo, claims that this figure is somewhat inflated. Instead of $6.32 billion, Bandolo says $3.5 billion is a better estimate of the real value locked in the top 15 DeFi protocols.

  • DeFi also didn’t fare to well during this sell off, market cap dropping to 14.7% (3.8% of overall digital asset market cap)

  • $LINK trading down to low 16s after topping at 20 three days prior. Chainlink’s DeFi dominance sitting at 43%, but still trending in the opposite direction with next support levels at 15.7 and 14.8. 

  • $YFI back down below 10K after rejecting at 13K yesterday, still up over the last five days with overbought RSI levels and trading in the upper Bollinger bands.

  • $XTZ stayed below 4 levels after it was unable to maintain 4.55 levels following two consecutive trading sessions in the red. Trading on the upper Bollinger bands

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