Curbing the inflationary growth can indirectly ease off the pressure on the stock market, which is bound to translate to Bitcoin and the hoard of tradable altcoins.
By Godfrey Benjamin
Updated
3 mins read
Following a week-long price slump, the crypto market is recording tremendous price growth at the moment as the combined industry capitalization is up 5.42% to $911.10 billion at the time of writing per data from CoinMarketCap.
The market is riding based on the surging price of Bitcoin (BTC) which is up 4.84% in the past 24 hours to $21,223.93. Ethereum (ETH) is also on the bounce with a daily gain of 9.30% to $1,126.57 while Binance Coin (BNB) came off with an 8.16% growth to $217.36. The comprehensive rally in the crypto market is perhaps being fueled by the new interest rate hike from the Federal Reserve at 75 basis points, the highest initiated in more than 28 years.
Inflation has been a major worry for growth stocks and risky assets like digital currencies. While the crypto assets are notably supposed to thrive more amid the surging rate of inflation around the globe as it can position them as a viable hedge to investors. However, the digital currency ecosystem has drawn more likening for tech stock which it is highly correlated with.
Curbing the inflationary growth can indirectly ease off the pressure on the stock market, which is bound to also translate to Bitcoin and the hoard of tradable altcoins. For now, the bullish outlook of the crypto industry is quite encouraging with Polkadot (DOT) up 7.51% to $7.57, Cardano (ADA) surging by 5.81% to $0.492, and XRP (XRP) up 4.35% to $0.3183.
The encompassing growth being recorded in the broader digital currency ecosystem is also being showcased amongst the Decentralized Finance (DeFi) protocols as listed on DeFi Llama. While almost all of the projects are seeing a very wide slump in their Total Value Locked (TVL) on the weekly chart, the daily change has been positive across the board.
MakerDao, which maintains over 10% dominance in the DeFi market, saw its TVL jump 3.14% over the past 24 hours to $7.65 billion. Similar bullish growth is seen in Aave (AAVE), Lido (LDO), an Ethereum-based decentralized exchange, and Uniswap (UNI).
That there was what many call a temporary bullish activity was accompanied by a massive hike in trading volume on prominent layer-1 blockchain protocols. However, the Non-Fungible Token (NFT) trading volumes have not caught up with this bullish run-up just yet as the metrics being recorded on Ethereum, Solana, BNB Chain, and Flow are all negative per data from CryptoSlam.
Overall, there are ambitious projections for the digital currency ecosystem as many believe that we are yet close to the bottom of the crypto winter plaguing the markets for now.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
