Worldsfeed Tech Desk: As Bitcoin (BTC) maintained its position as the leading cryptocurrency, it outperformed other digital assets, while Ethereum’s ether (ETH) and decentralized finance (DeFi) tokens faced significant declines on Tuesday. The price of BTC experienced fluctuations, initially dropping to $28,100 before rebounding to nearly $28,500 within a 24-hour period. In contrast, ETH exhibited signs of weakness, falling by 1.8% to approximately $1,560, marking a fresh 15-month low relative to BTC. The broader digital asset market, as measured by the CoinDesk Market Index, experienced a slight 0.6% decrease.
The CoinDesk DeFi Index (DCF) encountered the most significant struggles, with a 3.7% decline throughout the day. This decline was primarily driven by the native token of decentralized exchange UniSwap (UNI), which plummeted by nearly 7% following an announcement by Uniswap Labs regarding a 0.15% fee to be imposed on some trades via its front end, effective Tuesday. Additionally, the native token of the Sui blockchain (SUI) saw a significant drop of 7.6%, possibly due to concerns raised by the director of the South Korean Financial Supervisory Service about the Sui team potentially manipulating the token supply through staking. The Sui Foundation dismissed this report as “materially false.”
The dominance of Bitcoin in the cryptocurrency market, also known as the Bitcoin Dominance Rate, surged to over 52%, marking its highest level since April 2021, according to TradingView data. Some industry analysts believe that this metric could rise further as market participants eagerly anticipate the approval of a spot Bitcoin exchange-traded fund and the upcoming quadrennial Bitcoin halving in early 2023, which is considered a bullish factor for the asset’s price. In a market report on Monday, ByteTree analysts noted that the overall risk in the crypto market is currently lower than it has been in the past two years, and they expressed a positive outlook for Bitcoin in the near term. They stated, “Crypto is much less risky today than at any time over the past two years,” and emphasized the potential benefits of the impending halving for Bitcoin.