Focus of the Month: A Turbulent Month Full of Surges and Drops to Welcome the New Market Wave!
Jun 14, 2021
Focus of the month
- Bitcoin price falls after China calls for crackdown on bitcoin mining and trading behavior
- Binance Smart Chain Claims DeFi Attacks ‘Organized and Targeted’
- MATIC Should Reach Prior Highs as Polygon’s Developer Use Grows
A vast pullback in cryptocurrency happened lately, and such volatility crept many investors out of the market. It showcases that although people are aware of the market volatility, it is hard to be well-prepared when the market crashes. The prices change rapidly, as well as the news. Since Tesla stopped bitcoin payments in the middle of the month, the unstoppable bull has temporarily ended. Moreover, China announced a series of regulatory policies. The People’s Bank of China (PBOC) issued a notice to prevent speculation, stipulating that financial and payment institutions should not provide cryptocurrency-related services and products. The Inner Mongolia Autonomous Region has announced sweeping measures to rein in mining and even set up a reporting platform, triggering the biggest pullback in cryptocurrencies in recent months and causing quite a bit of panic.
However, market sentiment has changed so quickly; many voices have recovered their trust in cryptocurrencies. Therefore, token prices also gradually stabilized. First of all, El Salvador becomes the first country to adopt Bitcoin as the legal tender. Furthermore, with upgrading old star projects and new projects, many people believe that the bull market in 2021 is not yet over. Therefore, amid unpredictable trends, it is recommended that everyone comply with directions and immediately adjust their strategies, strictly manage risk, and avoid emotional reactions to increase the probability of a better return.
Let’s turn our attention to DeFi market dynamics. Solana, Polkadot, and other public chains are developing continuously. This month, the most impressive is Polygon, formerly known as Matic Network. As one of Ethereum’s Layer2 scaling projects, the rapid increase in transaction rates caused the number of users and transaction volume to soar in a short period. Aave, 1inch and other projects launched on Polygon, winning the favor of Lone Ranger boss Mark Cuban, showing high future potential.
With the emergence of more and more new DeFi projects, attacks are also emerging. For example, this month Binance Smart Chain experienced several flash loan attacks. The main reason is the vulnerability of the smart contract itself. Therefore, it is recommended that you evaluate the risk of the project before taking any action.
Looking back at the DeFi frenzy last summer, there is much to look forward to as we head into the second half of 2021. Of course, we’ll also keep an eye on the crypto world and take advantage of the latest profit opportunities. Lastly, we hope that the damage of the COVID-19 will improve as soon as possible. Steaker is with you all to fight against the pandemic, and we wish everyone peace and success.