Total crypto market cap drops by 6.7%, but futures data finds a silver lining

Looking at the past seven days of winners and losers, one might give the impression that the cryptocurrency markets are net positive. However, the total market capitalization actually decreased by 6.7% to $2.72 trillion, as the price of Bitcoin (BTC) fell by 8.3% to $58,425.

The biggest gainers and losers of the top 80 coins in the sector. Source: Nomex

The only connection between the top gainers this week appears to be the Metaverse and the gaming segment, which has been on the rise since Facebook renamed it to Meta on October 28, signaling its new focus on this segment. Further bullish news supporting the current surge in coins tied to the Metaverse is that the Gemini exchange raised $400 million on November 19 to build a decentralized Metaverse.

The best performers had specific reasons to pump

Gala (GALA) is then pumped out Queen Piece Huobi will be listed on November 16. The utility code powers a decentralized gaming system that gives players a voice in both the funding and development phases.

Crypto.com (CRO) also had its own news on November 18th to justify the rally. The marketing division behind the Singapore-based stock exchange has decided to donate $700 million to purchase the naming rights to the stadium where the Los Angeles Lakers play in the NBA.

On November 19, Elrond (EGLD) also announced a $1.29 billion incentive program to help attract users and liquidity into its decentralized financial system. The project uses hashing technology to achieve up to 15,000 transactions per second (TPS).

Decentralized exchange tokens are affected

Among the worst performing were two decentralized exchange tool tokens. The only negative news appears to be the November 9 paper by US Securities and Exchange Commission Commissioner Carolyn Crenshaw. The study stated that the sector lacks market protection and raises concerns about aliases and market manipulation.

Quantity (QNT) continues a downtrend after a 122% 7-day rally on Sept 3, boosted by a protocol upgrade that allowed ERC-20 and ERC-721 tokens to interoperate.

Vechain Thor (VET) recovered after 38% of pumping for 7 days on November 2 before the Proof of Authority (PoA) testnet v2.0 was released on November 5. The upgrade provides a more secure system for identifying block producers.

The premium for OKEx Tether (USDT), which measures the difference between its China-based peer-to-peer (p2p) trades against the official US dollar currency, has improved slightly.

Peer-to-peer premium OKEx USDT against the US Dollar. Source: OKEx

The current 99% index is slightly bearish, indicating weak demand from crypto traders to convert funds into stablecoins – still a big improvement from the 5% discount in mid-October.

Meanwhile, the overall open interest in cryptocurrency futures was negatively affected by the general drop in prices. However, the move was to be expected since the overall market capitalization slumped and $2.7 billion worth of liquidations took place during the week.

Total open interest on aggregated cryptocurrency futures contracts. Source: Coinglass.com

Despite this, the index remained at a healthy level of $50.3 billion, which is 60% higher than it was two months ago. It is worth noting that lower open interest is not necessarily bearish, but maintaining a certain level is interesting as more liquidity providers and market makers enter the market.

The above data may not look encouraging, but given that Bitcoin (BTC) and Ether (ETH) have suffered significant losses this week, the overall market structure remains well. Those who bet on “altcoin season” may be disappointed, but at least there were no overall losses of 15% or higher.

The opinions and opinions expressed here are solely those of author and do not necessarily reflect the opinions of Cointelegraph. Every investment and trading movement involves risks. You should do your research when making a decision.