Virtual Land Boom

Chart of the Day

With many speculating (with good reason) on the U.S. Federal Reserve's high likelihood of implementing a tighter monetary policy for 2022, a long shadow has been cast over the near-term outlook for both the equity and crypto markets. These negative sentiments are further compounded by all the fear and uncertainty that have been whipped up by the newly identified Omicron variant and its potential impact on the global economy. In fact, the equity markets have just suffered their worst back-to-back days of selloff since October 2020, while the crypto market has not been spared either. After news broke of the first confirmed Omicron variant case in the U.S., the price of BTC briefly dipped below the $56k level. Although BTC has since bounced back to its previous range near the $57k level, the resistance zone at $58k remains a major hurdle on the path to price recovery. A failure to clear said resistance zone will likely further extend BTC's decline, so let's hope that third time's the charm for the top cryptocurrency by market cap. Meanwhile on the on-chain front, the 14-day realized market cap change chart remains in the bearish region. However, it is showing signs of a possible trend up, where a flip from red to green would signify a strong bullish signal. Unfortunately, ETH seems to be moving in tandem with BTC, with the second-largest crypto by market cap plunging 6% in just a matter of hours on Wednesday, completely wiping out all of its mid-week gains. Despite this gloomy outlook, several L1 tokens, led by MATIC and LUNA, have managed to greatly outperform the broader market with double-digit percentage increase. Several other L1 ecosystems have also shown solid progress, with the likes of AVAX and FTM both clocking in impressive TVL growth rates in the second half of 2021.