The weekend rally in cryptocurrencies petered out on Sunday night as major cryptocurrencies turned red and the global cryptocurrency market cap fell 4.25% to $1.75 trillion.
What Happened: Ethereum (CRYPTO: ETH), the second-largest cryptocurrency by market cap, which shot up beyond the $3,100 mark on Saturday, fell below the psychologically important $3K level.
At press time, ETH traded 7.3% lower over 24 hours at $2,929.30. Over seven days ETH traded 15.74% higher.
The apex cryptocurrency, Bitcoin (CRYPTO: BTC), fell 2.93% to $43,102.16. BTC is up 8.5% for the week.
See Also: How To Buy Ethereum (ETH)
Dogecoin (CRYPTO: DOGE) corrected sharply by 15.55% over 24 hours and traded at $0.23 at press time. Over a seven-day period, DOGE traded 14.15% higher.
XinFin Network (CRYPTO: XDC) was the top gainer over 24 hours on Sunday night rising 19.8% to $0.094. XDC rose 18.43% over seven days.
The token on of the hybrid blockchain technology traded 22.68% and 27.84% higher against BTC and ETH respectively.
XinFin Network claims to have introduced the first decentralized email solution on Friday
Other notable gainers over 24 hours at press time were Holo (CRYPTO: HOT), Elrond (CRYPTO: EGLD), and Axie Infinity (CRYPTO: AXS).
HOT shot up 4.54% to $0.0081, EGLD was up 3.97% to $122.07, and AXS edged up 1.96% to $41.57 in the period.
Why It Matters: Following Ethereum’s London hard fork, the cryptocurrency could become a deflationary asset as network data suggested the process of burning of tokens has commenced.
Derivatives market indicators point towards a bullish trend building up in ETH with Switzerland-based options exchange Laevitas data showing that ETH volumes rose by more than 50,000 ETH to 153,000 ETH or $424 million on Saturday, CoinDesk reported.
Call options were reportedly more active than puts, with most popular derivatives being calls with an expiry of March 2022 carrying strike prices of $50,000 and $40,000.
Glassnode data pointed to growing activity on BTC blockchain even as that asset’s price grew over the weekend.
BTC’s total transfer volume (entity adjusted) rose to $7.48 billion a day over the fortnight leading up to Saturday, as per CoinDesk.
Transactions larger than $1 million made up 46.5% of the total transaction volume and were rising, noted Glassnode.
This week, the bi-partisan infrastructure bill’s passage through the U.S. Senate is likely to take center stage.
See Also: Elon Musk Sides With Crypto Industry In Infrastructure Bill Debate
The bill, which is partly financed by a wider tax net on cryptocurrencies, can only be expedited through the legislative body if all 100 Senators agree to its passage.
Currently, Sen. Bill Hagerty (R-Tenn.) is objecting to its fast-tracking citing the effect on the federal budget deficit, reported Reuters.
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