Cryptocurrency Market Analysis [May 10]

Virtual Currency Practical Investment Newsletter May 10

Dear Subscribers

＊Paid subscribers, please also view the articles under the non-public links.

＊If you have topics you’d like us to cover or questions, please contact us.

＊In the Newsletter Q&A corner we will introduce some of them.

is here↓↓

http://bitcoin-newstart.com/exchange-japan-bitcoin

【Cryptocurrency Market Analysis】

The price changes of cryptocurrencies since last week

are summarized as follows for the (one week) period

Display: current price (increase/decrease from one week ago)

Bitcoin

6,300万円 (1％)

Ethereum

441,000 Yen(37%）

Ripple170 Yen（0％）

Polkadot4,300 Yen（8%）

Binance Coin72,000 Yen（％）

Cardano191 Yen（31%）

NEM40 Yen（7％）

Uniswap4,200 Yen（-7%）

Bitcoin was at 6.2 million yen last week and rose slightly to 6.3 million yen.

Bitcoin daily chart

It can be said there is almost no movement, a stable fluctuation.

Bitcoin is currently calm, but instead of that, Ethereum, the second largest by market cap, is skyrocketing.

The total cryptocurrency market cap has swollen to about 250 trillion yen, about 12 times the 20 trillion yen a year ago.

Bitcoin’s share is 43%, Ethereum’s is 16%, and other coins are rising as Bitcoin’s dominance declines.

In the entire cryptocurrency market, Ethereum and other coins are rising while Bitcoin’s share declines.

When shown as percentage of the entire crypto market

＊Dominance is the share of coins in the total cryptocurrency market, expressed as 100%.【Ethereum Breaks Through $4,000!】

Bitcoin’s price is relatively stable, but Ethereum’s price surge continues in contrast.

Ethereum daily chart

In the 16 days since April 24, price has almost doubled (100% increase).

This is an even stronger rise than above.

The factors behind the price surge were introduced in the previous week’s article.

· Release of Uniswap V3

· Possible entry of institutional investors

and more.

In July’s Ethereum update, fees are reduced and supply may decrease, which is said to make Ethereum’s price more stable (more likely to rise).

Some investors have already priced this in, expecting a rise, but it’s not certain.

If Ethereum’s supply actually decreases, its price is sure to rise more easily.

（Reference）About Ethereum updates

https://bitcoin-newstart.com/eip1559-eth

At the same time, Ethereum 2.0 is increasing staking (locking up Ethereum),2.0and thus it is becoming harder to sell Ethereum, increasing its scarcity.

（Reference）What is Ethereum 2.0?

https://bitcoin-newstart.com/eth2-0

If institutional investors join, this could lead to such a large rise as well.

＊Participation of institutional investors is still possible

No major announcements yet.

Also regarding EthereumVacEck has applied to the

SEC for EthereumETF filing.

Until now, BitcoinETF filings have existed, but

As for EthereumSEC ETF

In Canada, both BitcoinETF and Ethereum

ETF have been approved and are listed on the Toronto Stock Exchange.

USSEC approval is a very powerful fundamental

factor, but with current cryptocurrency regulations

it remains a matter of opinion whetherSEC will approve.

【Dogecoin ranked4th by market cap】

Regarding Dogecoin, global entrepreneur Elon Musk frequently comments, drawing a lot of attention.

He has even mentioned SpaceX’s private space company’s SpaceX’s “Falcon 9” rocket carrying a small satellite “DOGE-1.”

I don’t hold Dogecoin and see it as entertainment.

However, with someone as influential as Elon Musk raising Dogecoin awareness, it is gaining influence akin to Bitcoin.

There is no reason Dogecoin must be the only dog-themed coin. There are many kinds of cryptocurrencies, and many coins superior to Dogecoin exist.

Of course, there are many currencies superior to Bitcoin as well.

Whether Elon Musk intends to build an ecosystem with Dogecoin is not clear, but it may be about popularizing Dogecoin and making it practical for use.

I generally invest based on fundamentals like Ethereum, so I do not hold Dogecoin (which I find somewhat thin in fundamentals) but I think it’s entertaining.

Nevertheless, I’m very interested in the question, “Why did Elon Musk choose Dogecoin?” If it’s for Dogecoin, any other cryptocurrency could have sufficed by considering functionality; perhaps he liked the dog branding or had a good relationship with the developers, etc.

However, not only Dogecoin, as a digital asset, the overall trend clearly points to the rise of digital art NFTs (digital assets).

（Reference）

Elon Musk: “Cryptocurrency will replace the status of currency”

https://bitcoin-newstart.com/eron-musk