The month of June was a rollercoaster ride for Bitcoin and the cryptocurrencies market as a whole. As a result of its market dominance, Bitcoin’s price volatility weighed on other altcoins
The cryptocurrency market capitalization in June began the month at around $1.6 trillion, falling as low as $1.15 trillion on June 22nd. The market, on the other hand, ended the month with a market capitalization of approximately $1.4 trillion, a 12.5 percent decline.
June 2021 Recap
The news that the Chinese government was taking extremely stringent measures to prohibit cryptocurrency-related transactions and mining was a major contributor to the market’s decline.
Miners in Ya’an, one of the major crypto mining hubs in China’s Sichuan province, received an inspection notice requiring shut-downs in their latest attempt to halt all cryptocurrency-related transactions.
As a result, the hashrate of Bitcoin, which represents the token’s blockchain network integrity, fell to an 8-month low.
The “Death Cross” scare is another reason for the drop during the month. A death cross occurs when the 50-day exponential moving average (EMA) crosses below the 200-day EMA. As a result, investors panicked and sold their holdings.
Bitcoin fell below $30,000 as a result of the death cross news.
Not only that, but Bitcoin experienced negative returns for the first time this year after trading as low as $28,800.
After considering these factors, here are some cryptocurrencies to keep an eye on in July.
Bitcoin traded between $30,000 and $40,000 in June. The market has been deciding which way to go, but has yet to do so.
Toward the end of the month, the token traded as low as $28,800, representing negative year-to-date returns.
Because of its market dominance, Bitcoin determines the performance of all other altcoins, so investors must keep a close eye on it.
Bitcoin currently has a market dominance of 45.4 percent, indicating that whatever direction the token chooses, the entire market will follow.
So far, many signs point to whales, a term used to describe High Net Worth Individuals (HNIs) or Institutional Investors, amassing Bitcoin.
If the accumulation continues, a supply shock is expected, which will send the market back into a bull market. With more institutions investing in Bitcoin, such as Morgan Stanley, the investment banking behemoth, a bull run is highly likely.
At the time of writing, Bitcoin was trading at $33,400, down 3.21 percent.
After Bitcoin, the Ethereum network is the second largest blockchain network. In June, its native token, Ether, was also battered. It fell by 12.65 percent, almost in lockstep with the market capitalization.
During the month, the token fell as low as $1,750 but quickly recovered.
The network will receive a hard fork upgrade in July to combat the high gas fee (transaction fee) that plagues the network when activity is high.
Although gas fees have been significantly reduced in recent times, the network upgrade is critical for the blockchain because, at current prices,
Investors will be looking to capitalize on Ether’s price levels while also using decentralized finance (DeFi) platforms to gain a competitive advantage against rising global inflation.
At the time of writing, ether was trading at $2,094, down 1.46 percent.
RippleNet is a real-time gross settlement (RTGS) system that aims to enable global instant monetary transactions. The company’s native token, XRP, has taken a beating as a result of the Securities and Exchange Commission’s (SEC) case against it.
The SEC is accusing the CEO of illegally selling his XRP holdings, but Ripple has been winning the case so far.
In its most recent victory, the judge denied the SEC access to Ripple’s legal counsel.
Concerning the case, the SEC and Ripple are likely to reach an out-of-court settlement because Ripple CEO Brad Garlinghouse stated that the company intended to go public.
So far, RippleNet is making its way into the NFT space, as SBI Holdings, a Japan-based financial services company, touts XRP Ledger for NFT use in the tokenization of a variety of assets in a report called the “Current Management Information Briefing.”
At the time of writing, XRP was trading at $0.65, down 0.45 percent.
Polygon fell by approximately 40% in June. It began the month at $1.83 and finished at around $1.09. The price has fallen in June, but there is reason to believe that the cryptocurrency will recover.
Polygon is the first well-structured, user-friendly Ethereum scaling and infrastructure development platform.
Polygon SDK, a modular, flexible framework that supports the development of various types of applications, is its main component.
Polygon’s use case is one of the reasons why Ethereum gas fees are so low today, as top Ethereum network applications such as Aave, Kyber Network, and SushiSwap have recently switched to the Polygon protocol.
Polygon, after all, is a layer 2 solution for the Ethereum network. With more projects moving into the polygon network, it is expected that the coin will see increased demand.
At the time of writing, Polygon was down 0.49 percent and trading at $1.09.
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SOL is the only cryptocurrency in the top 20 to have increased in value in June. The token increased in value by approximately 12.74 percent.
So far, its blockchain network has performed admirably for an Ethereum challenger. In a report titled “Beauty is not in the eyes of the beholder,” Goldman Sachs ranked Solana’s blockchain third among next-generation blockchains.
According to the report, Solana is the fastest public blockchain with low transaction fees and is developer-friendly and the blockchain’s full potential is yet to be seen because it has a small ecosystem.
Solana’s native token SOL is set to be listed on the Kraken exchange later this month, which will benefit the price because major listings tend to help price appreciation.
At the time of writing, SOL was up 4.35 percent and trading at $33.44.