The cryptocurrency market failed to deliver for yet another week despite high expectations of a substantial bounce back after the previous bear market.
Most of the top cryptocurrencies such as Bitcoin and Ethereum recovered slightly after rally attempts but it looks like the bears were too strong and previous gains continue to erode. In contrast, some digital coins experienced substantial upticks on the heels of the conversation on crypto mining efficiency. Here is a recap of how the following major cryptocurrencies performed.
Bitcoin gave a dismal performance in the last 7 days despite the expectations of a strong recovery. Any bullish attempts to break through and stay above the $40,000 support level were thwarted, thus leading to more loss of confidence among investors, especially the weak hands. Bitcoin’s unimpressive performance in the last 7 days seems to be largely associated with concerns about its intensive mining activity.
Mining in crypto terms is where computers are used to solve complex mathematical problems for transaction verification, with the most common forms being Proof of Stake (PoS) and Proof of Work (PoW). However, PoW requires hardware that consumes a lot of electricity, thus introducing sustainability concerns, which have in turn introduced uncertainty among investors. BTC transaction volumes have dropped supposedly due to these concerns with sub-$34k price action in the last 24 hours.
Ethereum bulls also seem to have been subdued a lot in the last week. It started with an attempted recovery during which prices rallied from a low of $1728 on Sunday, to a high of $2910 on Wednesday before the bears took back control as the price corrected. ETH is trading at $2560 at the time of writing.
Ethereum is planning to launch Ethereum 2.0 in the next few months with some added features including migrating from its proof of work consensus which has disfavored it this week, to a proof of stake consensus. This migration should encourage more confidence since PoS miners are less energy-intensive than PoW miners.
Cardano managed to moderately weather itself from the prevailing bearish sentiment in the overall crypto market last week. ADA is one of the cryptocurrencies that already operates on a Proof-of-Stake consensus mechanism for mining, which is energy-efficient and subsequently better for the planet.
Cardano founder Charles Hoskinson was in a Yahoo Finance interview during which he promoted Cardano. He explained why it is more suited for growth than many other blockchain platforms including Ethereum because it is built to handle scalability and mining issues that have been plaguing some of the other popular platforms. ADA is up more than 10% in the last 7 days, making it one of the few cryptocurrencies that were in the green.
Ripple has been in the spotlight for quite some time courtesy of its ongoing legal battle with the SEC. Unfortunately, that lawsuit has been a disadvantage for XRP’s performance for the better part of May. Fortunately, things are looking promising for the company and it recently revealed that it intends to go public as soon as the lawsuit is over.
XRP’s performance indicates that it has rallied by 16.71% in the last 7 days, making it one of the top gainers. The bulk of those gains are courtesy of its performance on Sunday and Monday morning this week, during which it maintained impressive bullish strength that pushed back above $1. The lawsuit has been holding back the cryptocurrency but a favorable outcome in the legal battle would be equivalent to releasing an anchor and going full speed ahead. Ripple has so far hinted that it expects a favorable ruling, which means XRP might be in for some interesting bullish times ahead.