The first full week of July has seen the digital asset market attempt to recover from the steep decline of cryptocurrency prices in June which gained roots during May’s market crash which was led by the collapse of the Terra LUNA ecosystem.
Among the top ten digital assets by market value, Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB) made essential gains during the business days of the week (Monday, July 4 to Friday, July 8).
Bitcoin trading volume fell year-over-year in the second quarter of 2022. Aside from this, mining revenue from the most popular digital asset by market capitalization fell to around $667 million, according to a report by the Block Crypto.
In addition to this, several mining firms reported over the weekend of July 1 to 3 that they had to offload several of their BTC holdings in order to remain operational since costs continue to outweigh the profitability of contributing power to validate proof-of-work (POW) network transactions.
Despite this, BTC has brought gains to holders.
On Monday, July 4, Bitcoin opened at $19,297.31, reached an intraday high of $20,258.75, tested an intraday low of $19,063.07, and closed the day at $20,231.26.
The trading volume for the day was approximately $21.59 billion and corresponded to a market value of $386.12 billion.
As of the late hours of Friday, July 8, BTC was exchanging hands for $22,314.94, trading volume for the day was in the region of $49.43 billion, and market capitalization was around $413.03 billion. Overall, this represented a 15% increase between the opening and closing price of BTC. This also showed a 128% spike in investor interest (trading volume) as well as a 6% rise in the market value of Bitcoin.
Due to the uptrend, analysts at Wallet Investor believe BTC could retest previous highs in the short term. According to them, the coin largely referred to by many market analysts as digital gold could command an average trading price of $31,951.80, a minimum trading price of $22,921.80, and a maximum price of $41,647.80 by the end of 2022.
Ethereum was one of the trending projects during the week due to the successful Sepolia testnet which switched from the old Ethereum network (ETH 1) to the new proof-of-stake (PoS) network (ETH2).
This constitutes a huge part of the project which is set to finally join Cardano (ADA), Solana, and others as one of the few chains that have successfully found permanent answers to the trilemma of blockchain which are scalability, decentralization, and security.
With the merge getting closer, traders and investors renewed their faith in the native asset of the ecosystem of the first smart contracts-backed chain, Ether.
On Monday, July 4, ETH opened at $1,073.79, reached an intraday high of $1,152.94, tested an intraday low of $1,048.40, and closed the day at $1,151.06.
The trading volume for the day was roughly $13.67 billion and this corresponded to a market capitalization of approximately $139.75 billion.
In the late hours of Friday, July 8, ETH commanded a trading price of $1,262.89, had a trading volume in the region of $16.34 billion, and a market value of $149.94 billion.
Overall, this displayed a 17% rise in the opening and closing price of ETH for the week. Moreover, this also illustrated a 19% and 7% increase in the trading volume and market value of Ethereum within the week.
The increase in investor interest has led several analysts including those at Digital Coin Price to make positive price forecasts about ETH.
Per the analysts, ETH could close the year with a normal trading price of $1,626.52, the least possible trading price of $1,521.52, and the best possible trading price of $1,732.70.
BINANCE COIN (BNB)
Binance Coin (BNB) is the native asset of the Binance ecosystem and its one of two assets (the other being BUSD) that plays an instrumental role in the Binance exchange.
This week, Binance exchange’s subsidiary called Moon Tech Spain received a license to operate as a Virtual Asset Services Provider (VASP) in Spain.
Despite news of insolvency and bankruptcy by several crypto firms, Binance has not been mired in any foreclosure issues.
Aside from that, the exchange has been making plans to expand its headcount while certain exchanges are cutting down the number of employees on their payrolls.
After plunging by billions of dollars, this week saw a revival of Binance Smart Chain (BSC) total value locked (TVL).
Decentralized applications such as PancakeSwap, Venus, Alpaca Finance, UniCrypt, and Multichain had all seen an increase in value locked, per data from DeFiLlama. This culminated in a rise in BNB’s price.
On Monday, July 4, BNB opened at $218.98, reached an intraday high of $231.77, tested an intraday low of $215.21, and closed the day at $231.57.
The trading volume for the day was approximately $1.04 billion and the market value was around $37.81 billion.
In the closing hours of Friday, July 8, BNB was exchanging hands for $246.68, had a trading volume of $1.33 billion, and this corresponded to a market capitalization of $39.54 billion.
Overall, this equated to a 12% increase between the opening and closing price for the week. More importantly, trading volume soared by 27%, and market capitalization spiked by 4% within the period.
Crypto News and analysis portal Changelly Blog has weighed in on the future price patterns of Binance Coin.
According to the experts at the portal, BNB could command a regular trading price of $368.75, the lowest trading price of $354.19, and the highest trading price of $413.46 by the end of 2022.
Bitcoin continues to make efforts to break out of the $18,000 to $25,000 zone through the improvement of its ecosystem. Ethereum looks forward to scaling faster when its merge is finally completed, and BSC continues to add projects to its ecosystem to rival Ethereum, Solana, Avalanche (AVAX), and co.
Only time will tell if gains made in July will erase the steep losses suffered in June.