Share articles to

Academy Trading Ideas Article
Bitcoin Ethereum DeFi Crypto Market Daily OKEx Insights

Tesla and Vitalik Buterin news trips wider cryptocurrency market

2021.05.13 Adam James

Despite a market-wide downturn, the decentralized finance market is still holding strong. 

The wider cryptocurrency market is reeling today after a tweet from Tesla CEO Elon Musk revealed that the company is suspending the acceptance of BTC as a form of payment — citing environmental concerns stemming from the leading digital asset's proof-of-work consensus mechanism.

The high-profile tweet has sent the total cryptocurrency market capitalization careening down nearly 10%, as of the time of this writing, with BTC down more than 11%. Second-ranked cryptocurrency ETH, which has been driving the market of late, has not been spared — falling more than 8%. The oft-promoted-by-Musk DOGE is also down nearly 17%.

The cryptocurrency market is bleeding heavily following Elon Musk's BTC-related tweet. Source: Coin360

In other news, the slew of meme-related coins with dog-related tickers has largely collapsed following the news that Ethereum co-founder Vitalik Buterin removed a substantial amount of liquidity from said markets, while donating profits to multiple charitable causes. The event has thrown a rather large wrench into the highly speculative mania pervading some of the retail sector lately.

The aforementioned events have crushed sentiment in the cryptocurrency market, per multifactorial analysis from alternative.me. In bull markets, some proponents may argue that the time to buy is when others are fearful — though it remains to be seen just how fearful market participants are going to get.

Cryptocurrency market sentiment has tanked following two key pieces of negative news. Source: Crypto Fear & Greed Index

DeFi holds up strong amid wider crypto market crash

Despite a highly fearful market and steep correction, decentralized finance is holding up relatively well. The total value locked in DeFi is currently still holding somewhat comfortably above $80 billion — though, TVL gains for major projects are largely relegated to Synthetix and Alchemix, only.

The total value locked in DeFi is nearing $90 billion. Source: DeFi Pulse

In the decentralized exchange market, first-place Uniswap has seen hardly any decline in TVL. Conversely, third-place SushiSwap has lost nearly 8%.

Top altcoin gainers and losers: NANO leads large-cap altcoins

  • GAL/USDT +61.52%
  • NANO/USDT +44.67%
  • ALPHA/USDT +18.82%
  • CNTM/USDT -8.58%
  • SFG/USDT -9.53%
  • TAI/USDT -9.81%

Looking at the top-performing altcoins on OKEx using the exchange's default timezone, we see that NANO is outperforming major altcoins through a substantial increase of nearly 45%. Sports token GAL, however, is holding down the top spot.

LRC is the top-performing large-cap cryptocurrency on OKEx today. Source: OKEx

BTC technical analysis: Tesla news collapses price

As mentioned throughout this article, the price of BTC collapsed following the news that Tesla would suspend its acceptance of the leading cryptocurrency for vehicle purchases. BTC did find support in an expected area of interest underneath 48,000 USDT, but those buyers must remain if the market leader is to have any chance at holding its current range in the face of mainstream environmental concerns.

OKEx's BTC/USDT 4h chart — 5/13. Source: OKEx, TradingView

ETH technical analysis: Walking up the EMA ribbon

The price of ETH has only seen a mild decline in recent hours against BTC, with buying interest expected to be present around the ribbon of exponential moving averages on the four-hour time frame.

OKEx's ETH/BTC 4h chart — 5/13. Source: OKEx, TradingView

Not an OKEx trader? Learn how to start trading!

OKEx Insights presents market analyses, in-depth features and curated news from crypto professionals.

Follow OKEx Insights on Twitter and Telegram.

Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.