Daily Market Update - September 3, 2020

Largest news circulating this morning revolves around one of Korea’s largest exchanges, Bithumb, being raided and investigated for pre-selling BXA tokens that did not end up getting listed and led to losses for investors. The exchange is still operating at this point in time. Uniswap exchange overtook Coinbase in trading volume for the first time, as DeFi maintained momentum, with its transactions equating to 28% of gas consumed on the ETH blockchain over the past 24 hours. Digital asset market:

  • Overall market cap dropped by 4.6% or 20B overnight as top 20 large-cap coins saw drops anywhere between 1.3% to 10% as news on Bithumb triggered FUD along with overdue profit taking action.

  • $BTC traded at 11,450 levels after a two hour sell off during the evening of Asia’s trading session saw $BTC drop to as low at 11,200 before rebounding slowly to 11,400s. $BTC dominance dropped by 0.4% to 56.1%. Next support level at 11,318, resistance at 11,450 with more volume needed to push back above 11,500.

  • $BTC futures liquidated 128.2m worth of long contracts with aggregated OI at 5B. Bull/bear ratio at 65:35, decreasing from 70:30 from the start of the week. 

  • Following the market sell off yesterday, future premiums came back to reasonably low levels (unseen for some time). If the market remains bullish, some are expecting those premiums to tick higher soon.

  • $ETH slid down from 470 to 440 but is still trading in the upper Bollinger bands on the 1D charts and currently showing oversold RSI levels. $ETH volumes increased to $BTC levels at 20.4B, and lost 4B of market cap during this sell-off session. Gas fees remain high between average of 250-300gwei.

Alts and DeFi watch:

  • All DeFi coins also in the red with coins seeing corrections ranging between -7% to -40% (AMPL), Will be interesting to see how the DeFi momentum responds to the astronomical gas fees which will directly affect the mainstream retail investors looking to get into the yield-farming game.

  • $LINK’s DeFi dominance drops to 31.5% while trading range-bound between 14 and 15.  Currently showing oversold levels and trading  in the bottom Bollinger band range.

  • $YFI dropped to as low as 25,000 before regaining momentum to push and maintain above 30000 during the American trading session. 

  • $UMA token rises to #2 on top large cap defi tokens with 1.28b market cap exceeding yearn.finance at 952m largely due to the kimchi swap protocol.

  • $LEND dropped 8% overnight to 0.69 and down 10.6% over the past week as DeFi farmers transition away from AAVE their preference dependent on the one that can provide the best yields 

Traditional markets:

  • Most sectors traded in the green on the S&P as the index moved up 1.5% and reached its new ATH at 3582. 

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