Last week, cryptocurrency markets faced declines as risk-off sentiment took hold due to rising American bond yields. Let's examine the current state of the cryptocurrency market.
State of the Cryptocurrency Market
Cryptocurrencies continue to experience a dip as US bond yields rise. Bitcoin remains below $95,000, while meme coins like Dogwifhat, Popcat, and Bonk are among the top laggards. The increase in bond yields was driven by strong US labor statistics, heightening the likelihood of the Federal Reserve maintaining a hawkish monetary policy.
Key Cryptocurrency Analysis: Arbitrum
Arbitrum, the second-largest layer-2 network, is a key focus this week due to its $67 million token unlock. Currently, Arbitrum's token has experienced a downward trend over the past 12 months, falling 70% from its 2024 peak amid market share loss to Base Blockchain.
Ondo Finance and Zetachain: Emerging Trends
Ondo Finance and Zetachain are also in the spotlight. Ondo Finance is set to release $2.38 billion in tokens, while Zetachain will unlock tokens worth $145 million, representing 49% of its market cap. Both tokens are on a downward trajectory amid current market conditions.
The current state of the cryptocurrency market is marked by significant uncertainty amid changes in US economic policy. Market participants are closely watching key projects like Arbitrum, Ondo Finance, and Zetachain, which could influence future profitability of the crypto market.
