Cryptos Defy Gravity

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Cryptocurrencies rebounded from period lows on Thursday to stage recoveries of close to 9 percent overnight. Overall crypto market capitalization has increased to $1.32 trillion, as compared to $1.21 trillion a day ago. Beleaguered stablecoin TerraUSD however plunged to a low of $0.1357, and the Terra blockchain has been officially halted. Top-ranked stablecoin Tether (USDT) improved on its dollar peg and is trading closer to 1$.

Bitcoin has surged to $30,741.44, recording an overnight gain of more than 8 percent. BTC has touched a 24-hour high of $30,921.27. Bitcoin's dominance of the crypto market dropped to 44.3 percent from 44.5 percent a day ago.

Ethereum has gained more than 10 percent overnight to trade at $2,121.19. Ether has touched a high of $2,128.34 in the past 24 hours. Ethereum increased its market dominance, edging up to 19.4 percent, from 19.3 percent a day earlier.

Tether (USDT), ranked first among stablecoins and third among all cryptocurrencies in market capitalization, is trading near the 24-hour high of $0.9991.

Market capitalization of all stablecoins dropped more than 4 percent to $162 billion, as risk appetite for digital assets increased significantly. Stablecoin dominance dropped to 12.32 percent, from 14.03 percent early on Thursday.

Among the top 20 cryptos, Polkadot (DOT) is trading 43 percent higher, whereas Shiba Inu (SHIB) is trading 35 percent higher.

XRP(XRP), Cardano (ADA), Solana (SOL), Dogecoin (DOGE), Avalanche (AVAX) and Polygon (MATIC) are trading more than 20 percent higher.

BNB (BNB), NEAR Protocol (NEAR), Litecoin (LTC) and Cronos (CRO) are trading with gains of more than 10 percent.

Wrapped Bitcoin (WBTC) and TRON (TRX) have gained less than 10 percent.

Down the hierarchy, 33rd ranked Internet Computer (ICP), 36th ranked Decentraland (MANA), 58th ranked STEPN (GMT), 59th ranked Fantom (FTM), 62nd ranked eCash (XEC), 73rd ranked Gala (GALA), 81st ranked Harmony (ONE), 96th ranked Kava (KAVA) and 98th ranked Kadena (KDA) have rallied more than 40 percent overnight.

Cryptocurrency exchange Binance on Friday announced the halting of spot trading in the LUNA and UST cryptos. Meanwhile, cryptocurrency exchange Crypto.com announced the halting of LUNA trading on the exchange amidst an incident on Thursday wherein some trades on LUNA happened at an incorrect price. The exchange also clarified that it would be undertaking a reversal of the incorrect trades.

Terra's stablecoin TerraUSD (UST) is currently trading at $0.1646, down 71 percent on an overnight basis. It has also slipped to rank 39 overall.

Terra's governance token Terra (LUNA) is currently trading at $0.00005786, down 99 percent on an overnight basis. It has slipped to rank 234 overall, as market capitalization dropped to $217 million.

Crypto did have some good news, as Germany announced that there would be no tax on crypto sales for investors holding for one year or more. A proposal to ban Bitcoin mining in Norway has also been rejected.

Developments within the crypto universe and beyond the crypto universe have had a disquieting effect on prices in the past few days. Persistent inflation, the aggressive rate hikes required to combat it, a strong Dollar, geopolitical turmoil and its effect on commodity prices as well as economic growth, a looming recession and contagion from the broader financial markets have taken its toll of the crypto market sentiment. But this Friday, cryptos appear to be shrugging off all bad news and surging ahead, defying gravity.

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