In the first week of June, the crypto market was still recovering from the May correction. Most cryptocurrencies were moving in a ranging market in which the cost went back and forth from peak to trough. This frequently happens after sell-offs, due to the fact that costs search for new highs. After it collapsed to greater downward pressure, Bitcoin lost lot and dragged down the altcoins.
BTC's 49% plunge in May marked the sixth largest displacement of this class, arguably one of the worst monthly corrections in history. That said, corrections of this intensity are not unusual and were bound to happen.
BTC ended the month down about 35% and is still struggling to recover. BTC is trading at about $40,212.46.
With the cost down nearly 50% from its all-time high, several bullish news reports suggested that BTC was nearing a bottom. Cryptocurrency exchanges recorded a net outflow of well over 22,500 BTC on Monday, May 7, the largest single-day net withdrawal since last November.
The number of BTC in exchange wallets fell over 3 weeks, from 2.56 million to 2.54 million. BTC outflows customarily mean that traders could be moving their coins to their pockets, defense services or icy storage, however with no end goal to sell them in a short span of time.
ETH had collapsed a bit more than BTC, it additionally reached recover faster.
The ETH/BTC exchange rate rose over 39% after bottoming out at 0.050 BTC around May. However, it should be considered that the exchange corresponded to around 0.023 at the beginning of the year.
Ethereum tends to outperform BTC once the market is rising, however it is also inclined to take larger dips throughout a correction. Currently, ETH is trading above , which implies a year-to-date rise of around 250%.
A fundamental network upgrade to the Ethereum blockchain is expected in July as the plan is worked out for the 1559 Optimization Initiative. The upgrade is expected to address Ethereum's high transaction fees.
It would do so by replacing Ethereum's first auction fee model with a base network fee that would fluctuate in functionality of network demand. The new update further suggests to cap transaction fees, introducing deflation into Ethereum's ecosystem.
ADA, Cardano's native cryptocurrency, is currently the fifth most enormous crypto by market capitalization and belongs to the best performing assets, up nearly 800% year-to-date.
The surrounding and bullish cost action is fueled, primarily, by the upcoming capable contract deployment project, dubbed Alonzo.
The series of color-coded test networks will begin with Alonzo Blue and culminate with Alonzo Purple, and is expected to conclude in September 2021. Alonzo will bring the functionality of capable contracts to the blockchain and, for the first time, let the deployment of a vast array of decentralized financial applications.
Cardano has well over 2,500 active funds and some $36 billion invested.
DOT, the native token of the Polkadot ecosystem, suffered a fundamental correction, however the cost is recovering very slowly.
Polkadot has released several relevant updates recently, including Polkadot version 0.9, which includes the ability to deploy parachains on the network and the logic for conducting parachain auctions and crowdsourced lending.
The update causes Polkadot's parallel chain, Kusama (KSM), to additionally manage to host Polkadot parachains and parachain auctions. Parachains sold as slots are one of the highlights of Polkadot and have the potential to be used for various purposes, such as private chains, capable contract chains or high-frequency business.