The low performance in the month of November, amidst a risk aversion that also shook the world stock exchanges, brings discouragement to Bitcoin ( BTC ) investors and makes the price trade again below US$ 57 thousand, with low volatility this morning.
In a cold moment also for other cryptocurrencies, the total market value is still at US$ 2.74 trillion and, contrary to what has been happening in recent days, no digital asset rises double digits at the moment.
In the top 10 of cryptos by capitalization, only Solana ( SOL ) is up today, with gains of 2%. But, the highlight of the day is another rival of Ethereum ( ETH ): the Earth ( LUNA ), which advances 7.8%.
ETH, on the other hand, retreats 3.5% and is traded again for less than US$ 4,600. Binance Coin ( BNB ) and XRP ( XRP ) also drop more than 3% and Polkadot ( DOT ) drops 4.9%. Meanwhile, Stacks ( STX ) and Basic Attention Token ( BAT ) lost 12% and 10%, respectively, after strong gains in the last week.
Dogecoin ( DOGE ) came to rehearse strong high around 5am, again reacting to a post by Elon Musk on Twitter. In response to a post about congestion on the Ethereum network, the CEO of Tesla and SpaceX suggested that the cryptocurrency meme could be an alternative by writing: “Dooooge”.
It was enough for the asset to soar 8% in a few minutes, briefly surpassing the $0.22 mark that was lost on November 30th. The rally, however, cooled down shortly. At 7:25 am, it was operating close to stability, with a slight gain of 0.1%, at $0.21.
The market as a whole was not impacted by Meta’s policy change, which reversed the ban on crypto advertising on Facebook.
Meta releases advertising about cryptocurrencies on Facebook
Meta announced a new policy for advertising cryptocurrencies on Facebook. The decision, which effectively suspends a ban on this type of advertising until then in force on the platform, would be justified by the maturity of the market and regulatory measures in the sector.
“We are doing this because the cryptocurrency landscape has continued to mature and stabilize in recent years and has seen more government regulations that are setting clearer rules for their industry,” the company said in a statement released yesterday.
Despite the release, the social network will continue to require pre-approval to run ads related to brokerages, loan and portfolio platforms, and cryptocurrency mining equipment.
The company, however, admits that the cryptocurrency industry is growing at a rapid pace, and that it can therefore “refine these rules over time”.
Whales dominate decentralized finance on Ethereum
Whales, as big capital investors are called, dominate negotiations on decentralized finance (DeFi) protocols that run on Ethereum. According to a survey by Kaiko, a French company specializing in digital asset data, large value trades are the majority on decentralized exchanges (DEX).
At Curve Finance, for example, negotiations are, on average, around US$ 500 thousand and US$ 1 million. The numbers of other exchanges are smaller, but still considered too high compared to conventional brokers. While Uniswap, SushiSwap and Balancer register trades from US$10,000 to US$20,000, the average of centralized exchanges is between US$2,000 and US$4,000.
“Average trade sizes have increased across all DEXs in recent months, while the actual number of trades has remained stable, suggesting that the average trader’s profile is now shifting more towards whales,” Kaiko said in a note.
The behavior, the analysis pointed out, is due to the high network fees charged by the Ethereum network, which keep away the user who wants to negotiate lower amounts. Expensive fees are seen as the main bottleneck in this blockchain, which paves the way for the growth of rivals such as Binance Chain, Solana, Polkadot, Terra and Avalanche.