Crypto market back above $1tn as Polygon and Ethereum surge

·3 min read
NEW YORK, NEW YORK - JUNE 23: People walk by a Polygon Studios billboard in Times Square during the 4th annual NFT.NYC conference on June 23, 2022 in New York City. The four-day event featured 1,500 speakers from the crypto and NFT space with over 14,000 guests in attendance. (Photo by Noam Galai/Getty Images)
People in Times Square during the 4th annual NFT.NYC conference in June 2022 in New York City. The four-day event featured 1,500 speakers from the crypto and NFT space and was attended by over 14,000 guests. Photo by Noam Galai/Getty Images.

The cryptocurrency market cap is back above $1tn with Polygon and Ethereum taking the lead in the latest rally.

Polygon (MATIC-USD) has risen almost 200% in one month.

The side-chain of the Ethereum network, which offers much lower transaction fees, now sits at $0.90, up 60% in the last seven days.

Ethereum (USD-ETH), the second largest cryptocurrency by market cap is up 39% in one week to now stand at $1,521.

Bitcoin (USD-BTC) has had an excellent start to the week, breaking through the $22k level on Monday, now trading at $21,822, up 9.2% in the week.

Read more: The Crypto Mile: Has bitcoin reached the dip or will it fall even further?

So, have we seen the bitcoin bottom? According to investor Raoul Pal, he believes the bottom has been reached and we will now see rising figures.

The CEO of Global Macro Investor to Twitter (TWTR), and tweeted: "Crypto - Is the low in? My view is on balance, probably.

"I also think the macro turn is very close too. Have bond yields topped? Probably.

"Returns since the panic 3AC liquidation: BTC +24%, ETH +71%, SOL +64%, AVAX +77%, DOT +26%, AAVE +116%, UNISWAP +131%, XRP +29%."

The influential investor referred to what has happened with all the crypto hedge fund and lending platform collapses, the most prominent ones being the bankruptcy of Voyager Digital (VOYG.TO) and the Celsius Network (USD-CEL), and the collapse of Three Arrows Capital (3AC).

However, after these initial collapses, the market seems to have stabilised, and we have not seen any more crypto firms in distress.

We have not seen any more exchanges, lending companies, VCs, or hedge funds collapsing.

The rally brings the whole cryptocurrency asset class above $1tn again after slumping below this key psychological level since the crisis surrounding the algorithmic stablecoin terra/Luna (USD-UST) in May.

The earnings reports from many US-listed companies are out this week, with Q2 earnings from Goldman Sachs and Bank of America showing solid performance.

Read more: Crypto live prices

However, a report from Bloomberg showed that Apple would slow hiring and spending on growth next year to prepare for a possible economic downturn.

By the end of trading on Monday Apple was down 2.1% and shares fell in IBM fell by more than 4%.

Stocks connected to the cryptocurrency sector fared better, with crypto stock Coinbase up 9% on Monday to finish the day at $58.67.

Microstrategy has seen its share price rise by 19.79% in the last 5 days, Michael Saylor's company has been buying bitcoin over the past two years.

Watch: The Crypto Mile episode 3 – How blockchain technology could usher in Web3