For the third week in a row, markets have continued to see reversals. A trend like this hints at the possibility that this is a consolidation phase. The gaming sector was the hardest hit this week, posting a 10.47% loss—this week’s only double-digit negative return. DeFi also had a rough week, finishing second to last with a -8.61% return. The sector with the least decline was top assets, returning -2.69%.
Terra (LUNA) has not ceased to impress as the alternate Layer-1 platform has continued outperforming amidst a global conflict. It is the third week in a row that LUNA has secured double-digit positive returns, prompting investors to wonder how sustainable this rally is. However, LUNA is at a critical point, now that it has briefly reached all-time-high territory. It remains to be seen whether this will mark a double top (and potential freefall) or if the $100 price line will become support for new price discovery. LUNA finished the week with a 15.4% gain while Ripple (XRP) was the only other asset within the top ten assets by market capitalization that ended the week in the green (1.7%).
No DeFi top assets made it above water this week. One of last week’s top two performers, Anchor (ANC) saw its price reach an all-time-high of $6.19 during the first half of the week in anticipation of the upcoming Arca and Polychain anchor proposals and potential future tokenomic changes. ANC saw heavy upwards price action earlier week followed by abating price towards the end of the week, marking the money market protocol asset’s largest recorded decline. The magnitude of the loss was enough to shift it from the top spot down to last, finishing the week with a -18.2% return. True DeFi TVL (no double count TVL of certain protocols) is sitting at a stable $158.9 billion.
For the third week in a row, Terra (LUNA) has led the smart contract platform sector by a wide margin. Although this week was no different, it seems as if its momentum might be slowing down for the moment after posting a more conservative (compared to previous weeks) return of 15.4%. The Cosmos-based IBC chain’s recent rally is a testament to how deeply tied its performance is to the issuance of new UST, which recently reached its peak issuance limits driven by a massive demand for decentralized stablecoins. Only two other smart contract platform assets finished the week in the green: NEAR Protocol (NEAR) and Tron (TRX) with 4.9% and 1.2%, respectively.
Privacy coins have had notable performances lately, mainly driven by the events surrounding the Russia-Ukraine conflict and the recent executive order signed by President Joe Biden on cryptocurrencies. Although both Monero (XMR) and Zcash (ZEC) found themselves in double-digit territory towards the end of the week, only ZEC was able to maintain its momentum. ZEC secured a 12.6% gain while XMR took the third spot with a 2.2% return.
While Stacks (STX) has not been demonstrating much positive price performance, a green candle yesterday saw its price wick up to 72% following news that Okcoin pledged $165 million to support Bitcoin-related projects. While STX finished the week with a 26.6% gain, Arweave (AR) was the only other asset within the top Web3 assets that ended the week with a positive return (3.9%).
Aavegotchi (GHST) was the only top gaming asset that closed the week with a positive return, bringing in 0.1%. The low figure was expected due to the asset’s comparatively low volatility. Losses for the other top gaming assets by market capitalization ranged from -6.2% to -14.8% corresponding to Enjin (ENJ) and Alice (ALICE), respectively.
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