Recovery Time?

Chart of the Day

In diving into some key on-chain metrics, the sheer magnitude of the recent weekend's crypto crash can be better put into perspective. The BTC Net Realized Profit/Loss chart, a metric that tracks the market-wide net on-chain spending, reveals that the scale of the recent capitulation is very much comparable to the now infamous May sell-off in 2021. This current drawdown can also be viewed as an extension of a series of sustained corrections that began as early as November last year. Thankfully, as of the time of writing, the broader crypto market seems to be taking a breather from the massive weekend correction, as many major mid- to large-cap cryptocurrencies are currently attempting to stabilize above their respective support zones. For one, BTC is hovering at the $36k handle after experiencing a 5% rally within the past 24 hours. In a similar vein, ETH has also managed to climb back to the $2,400 level, while former top-performers like AVAX and FTM (that have not been performing as well in recent times) have also finally flipped green. Amongst the two, FTM was the quickest to rebound from the recent drawdown on the back of a steady and consistent growth in their TVL, and currently look to be consolidating in a relatively strong position.

Talk of the Town

In a pretty surprising turn of events, the Ethereum Foundation recently announced that the term "Ethereum 2.0" will be retired due to some tactical changes in the popular blockchain's development roadmap. "Ethereum 2.0" will now be rebranded into "consensus layer", a name that more accurately captures the state of their network's impending upgrades. How this will affect ETH's price movement (if it even does) remains largely to be seen, but it will definitely be prudent to keep a keen eye on where they go from here.