After a turbulent month for the crypto industry in March, Bitcoin (BTC) price went sideways in April despite some volatility. The meteoric rise of memecoins like PEPE made headlines and First Republic, another mid-sized US bank, went under. However, based on current market sentiment, there is a stalemate between markets and policymakers: While US Securities and Exchange Commission Chairman Jerome Powell publicly states With interest rates unlikely to fall this year, markets for risk assets such as cryptocurrencies are firmly counting on a pivot in the coming months.
At times like these, it is wise to delve deeper into the fundamentals that will shape future market movements. With an uncertain macro environment and a looming regulatory crackdown in the US, there are other notable events that easily overshadow these dominant reports.
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For those looking to gain a deeper understanding of the various sectors of the crypto space, Cointelegraph Research publishes a monthly Investors Insights Report that delves into venture capital, derivatives, decentralized finance (DeFi), regulation and much more. The monthly reports compiled by leading experts on these various topics are an invaluable tool to quickly get an idea of the current state of the blockchain industry.
NFT hype fades as memecoins take over
Non-Fungible Token (NFT) collectibles are one of the few sectors that have taken a big hit this month. Memecoins like PEPE are partly to blame for this, as they have absorbed the attention and printed eye-popping profits. BRC-20 tokens, a new abstraction built on the Bitcoin Ordinals protocol, may also compete for cash inflows from traditional NFT collectibles traders. The sellers have started consistently outnumbers buyers on NFT marketplaces recently and this trend is likely to continue.
There are fears that the NFT market is going into freefall as all the important metrics like volume and active wallets are plummeting. NonFungible reported only 49,200 active wallets and $80,500 in sales this month. The NFT market wars, combined with the waning excitement around NFTs, are other drivers of this long-term development.
Despite the overall decline in the NFT market, a niche NFT sector gaining momentum is the NFT lending market. Since the beginning of 2022, the sector has seen double-digit growth every month, which continued in April with a 16.13% increase in new users.
Mining stocks outperform BTC
Each Cointelegraph monthly research trends report includes coverage of the mining economy and crypto stocks. For investors looking to increase their exposure to BTC, mining stocks have historically been a popular option. While idiosyncratic factors have weighed on individual stocks this month, the sector as a whole appears to have exited the 2022 bear market.
The highest returns were again recorded by TeraWulf, which continued its growth with another 85% increase in ratings. CleanSpark, IrisEnergy and BitDigital were other strong gainers. Notably, the stock outperformed BTC overall in April after lagging the previous month. While Bitcoin closed up just 2.8%, the biggest mining-dominated crypto stocks gained 12.9%
Of course, the increased valuation in the mining industry is highly sensitive to BTC price action. For those who trust improving macroeconomic conditions for risk assets, these stocks may offer good entries as they have been previously beaten by the bear market. The stocks section of the monthly report tracks the fundamentals of major companies in the industry, complementing our regular analysis of the economics of bitcoin mining.
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Demelza Hays, Ph.D., is the Director of Research at Cointelegraph. Hays has assembled a team of finance, economics and technology experts to bring to market a world-class source of industry news and insightful analysis. The team uses APIs from various sources to provide accurate, actionable information and analysis.
With decades of combined experience in traditional finance, business, engineering, technology and research Cointelegraph Research Team is perfectly positioned to put its combined talents to good use with the latest Investor Insights Report.
The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations for any person or specific security or investment product.
