We have been going through quite turbulent days. Unfortunately, the direction of the market is mostly downwards. On the other hand, the sales are not unique to the crypto market. The "risk-off" mode has been in effect for a while and almost all of the risky assets are losing value. It is gratifying that cryptocurrencies are outperforming the stocks. The chart below shows the crypto market's total capitalization compared to the Nasdaq 100 index. While the crypto market has gained 8% in the last 3 months, the NASDAQ 100 index has lost 5% of its value.
The Bitcoin Fear & Greed Index shows that individual investors spent the past week in "extreme fear". Individual investors are selling profusely, but high price movements do not occur in Bitcoin and Ethereum. However, other cryptocurrencies are losing value rapidly. This suggests that institutional investors are buying Bitcoin and Ethereum. As a matter of fact, in the last 1 month, Bitcoin domination increased by 1%, and Ethereum domination increased by 0.1%.
In April, the crypto market tumbled 18 percent. This situation demoralized most of us. On the other hand, the uptrend on the weekly charts for Bitcoin and Ethereum is not broken.
It is seen that higher lows have continued to occur for the last 16 months on the Bitcoin weekly chart. There is a similar situation on the weekly Ethereum chart.
We see that the Ethereum price is increasing faster compared to Bitcoin. We cannot see the higher highs like typical uptrends on the charts. Nevertheless, it is possible to say that both Bitcoin and Ethereum are performing well in the current macroeconomic conditions.
Encouraged by the strength of the crypto market compared to other markets, I re-invested in PolyCub this morning. I say "again" because a few weeks ago I sold all my PolyCubs as I was anxious about the general trend in the market.
Polycub's value has steadily declined except for the first three days of its release. Therefore, with this new investment I have made, I have put my hand under the falling knife :) Tomorrow the PolyCub airdrop ends and the number of coins produced per block will decrease from 1 to 0.5. According to my calculations, 420k new Polycubs will be produced next month. MasterChef account (protocol owned liquidity) earned 436k Polycub in the past two months. In the chart below, we see the balanced development of the MasterChef account.
This means that it has the potential to earn half of the coins that will be produced next month. Currently owning 8 percent of all Polycubs, "MasterChef" will become the most loyal ally of Polycub investors in the future :)
The Polycub purchase I made this morning is not risk-free. When the market goes bad, DEFI tokens are more affected than others. 10 whales hold more than 50 percent of xPolyCub. Any loss of patience could hurt the Polycub price. On the other hand, falling returns after halving may lead to a decrease in PolyCub's TVL.
The fact that additional income sources were created for the protocol-owned liquidity also played a role in my investment. "Masterchef" is still earning significant returns over the pHBD bridge as well as Kingdoms. When pHive and pSPS kick in, they will provide additional returns for "MasterChef". We expect features such as bonding and collateralized lending to come into play in the coming period.
Conclusion
The coming days may bring along a fluctuating course for both the market in general and PolyCub. As I am optimistic about PolyCub and the market in general, I have converted my entire stable coin portfolio to PolyCub. As we all know, it is not possible to earn high returns without taking risks. We will see what the next days will bring.
Thank you for reading.
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