Crypto Market Recovers Slightly; Haun Ventures Leads Funding Round for Music NFT Platform

Chart of the Day

After suffering a five-day slump, the broader crypto market has finally recovered a little on Tuesday. BTC managed to defend the $31k support level after posting a marginal gain over the last 24 hours. However, the upside price movements of the largest cryptocurrency by market cap may very well be limited as it is still facing multiple hurdles within the $32k to $32.5k zone. A clear break above the $32.6k level may bring about a much-needed recovery wave. On the flip side, BTC could just as easily trend downwards to test the support near the $30k level should the overhead resistance prevail.

Within the derivatives market, the funding rates for perpetual swaps remain elevated as some leverage traders are betting on a new reversal after BTC seems to have established a stronger foothold on several solid support levels. Looking at the Market Realized Gradient, we can see that a short squeeze should never be fully cast out of the picture, as the bears have previously been flipped on multiple occasions. However, we should also be mindful that chasing bottoms in a bear market is a risky endeavor. 

In a similar vein to BTC, ETH is struggling to break above the $2,400 resistance level despite posting slight gains from 24 hours ago. Most major altcoins have also seen tapered losses, with the exception of LUNA. The market value of LUNA continues to shrink drastically despite the Luna Foundation Guard (LFG) exhausting its BTC reserve to defend UST's peg. Meanwhile, the NFT market is also in turmoil, with many well-established collections tumbling by over 20% in ETH terms.

Talk of the Town

Haun Ventures, a new crypto-native firm founded by a16z alumnus Katie Haun, is leading a $11 million seed funding round for Highlight, an NFT platform that enables creators to build a web3 community with NFTs. The idea behind Highlight is to rethink the relationship between platforms and creators, and allow those who have virtually no programming or crypto background to enter into the NFT space. This concept is aligned with the vision of Haun Ventures, a firm that aims to make web3 more accessible to and intuitive for mainstream creators and fan bases. Despite being relatively new to the space, Haun Ventures has already led several funding rounds in recent times.