Last week, the values of cryptocurrencies decreased due to a shift in investor attitudes worldwide towards a more cautious stance, as U.S. bond yields experienced an increase.
Bitcoin held steady around $95,000, whereas meme tokens such as Dogwhistle (WIF), Popcorn Cat (POPCAT), and Bonk (BONK) showed relatively poor performance compared to other cryptocurrencies.
As a crypto investor, I’ve noticed that US bond yields have been climbing steadily following the robust nonfarm payroll numbers released recently. This strong employment data fuels speculation that the Federal Reserve might maintain a more aggressive stance this year. In December alone, the economy created over a quarter-million jobs, and the unemployment rate dipped to 4.1%. These figures suggest a healthy labor market, which could lead the Fed to tighten monetary policy further.
This week, it’s worth keeping an eye on Arbitrum (ARB), Ondo Finance (ONDO), and Zetachain (ZETA) as they are among the leading digital currencies to monitor closely.
Arbitrum
This week, it’s worth keeping an eye on Arbitrum, the second-largest layer-2 network, as it unveils tokens valued at approximately $67 million, which represents around 1.08% of its total supply. So far, it has released 53% of its tokens, with the remaining portion scheduled for release in April 2027.
Over the past year, I’ve observed a significant downward trend in Arbitrum’s token performance, representing a staggering 70% drop from its peak value in the year 2024. This slide occurred as Arbitrum seemingly ceded market share to Base Blockchain.
The Arbitrum token’s value has dipped beneath both its 50-day and 25-day Exponential Moving Averages and is presently slightly above the significant support at approximately $0.70. This crucial support level has held since December, but if it’s broken, it could indicate further drops, possibly down to $0.4625 – a price point that was its lowest in November.
Ondo Finance
Keeping an eye on Ondo Finance, as it releases tokens valued at approximately $2.38 billion or 133% of its total float on Thursday. The network currently has a circulating supply of 1.38 billion tokens, with a maximum supply capped at 10 billion. These token releases will continue up until the year 2029.
In simpler terms, Ondo might gain the most when bond yields increase, as investors shift their funds to money market accounts. Currently, Ondo’s USDY and OUSG stablecoins offer returns of 4.35% and 3.28%, respectively. However, it remains uncertain whether Ondo’s overall performance will improve due to its growth.
As an analyst, I’ve noticed a significant downward trend in the token’s price. From its peak of $2.13 in December, it has since dropped to $1.23. Not only that, but it has also fallen below both the 50-day and 25-day moving averages, and has broken through the key support level at $1.4800, a level which was its highest swing point in June of last year.
On the optimistic note, ONDO seems to be shaping up into a falling wedge formation, with its trendlines getting closer to each other. Such a pattern might indicate further price increases, possibly reaching around $1.4800.
Zetachain
As a crypto investor, I’m keeping a close eye on Zetachain, a cryptocurrency with a market cap of $337 million. With an upcoming token unlock event that will release tokens worth approximately $145 million, or roughly 49% of its total market value, it’s sure to be in the spotlight.
Over the past several months, the token has seen a steep drop following its high of $1.3752 back in June last year. This downward trend can be attributed to the decrease in the total value locked within its Decentralized Finance (DeFi) sector. The TVL has fallen from approximately $16 million in November to around $7 million at present.
The price of ZETA token is currently lower than all its moving averages and has found a stable point at $0.5328, which is its lowest level since last October. Moreover, it’s also below its 50-day moving average. If this key support ($0.5328) breaks, the token may continue to fall towards $0.3530, a price point that was its lowest in the year 2024.
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2025-01-12 21:08