Looking at the winners and losers of the by calendar week conspicuously shows that traders endured some serious estrus as the total crypto market place capitalization dropped by 12.seven% when Bitcoin roughshod to $41,000. This sharp downside move knocked the figure from $two.37 trillion to $1.92 trillion on Dec. 3 and a total of $2 billion long future contracts were liquidated.

Top winners and losers from height 80 coins. Source: Nomics

Bitcoin (BTC) price retraced 14.6% over the past week, effectively underperforming the broader altcoin market. Part of this unusual motility tin can be explained past the performance seen in decentralized applications, which held up amend than most of the market. Data shows Ether (ETH) traded downward 6.0%, Binance Coin (BNB) lost 7.3% and Solana (SOL) dropped by 7.8%.

This week'due south top gainers include OKEx's OKB token (OKB) and Bitfinex's UNUS (LEO). Perhaps these benefited from not having a Usa entity considering the regulatory uncertainties in the region continue to increase. Moreover, scaling solutions Polygon (MATIC) and Algorand (ALGO) benefited from Ethereum's $40 or higher network transaction fees.

Terra (LUNA) featured on concluding week's height performers after its built-in token burn mechanism significantly reduced the supply. Meanwhile, Stacks (STX), previously known as Blockstacks, pumped after D'Cent wallet included back up for SIP010 tokens.

Sharing solutions had a disappointing week

Amongst the worst performers were iii decentralized sharing solutions: Theta Network (THETA), Filecoin (FILE) and Internet Figurer (ICP). They were not alone, equally some of the sectors' altcoins below the top 80 also crashed. Siacoin (S.C.) endured a 34% drawdown and Ankr Network (ANKR) dropped by 31.8%.

Chiliz (CHZ) suffered direct competition after Binance successfully launched an contained soccer fan token called SANTOS. Initially, Chiliz'southward platform was created to host sectional promos, services and voting for their fan tokens and more recently, the project ventured into the nonfungible token (NFT) market. However, that initiative besides lost its impact after soccer thespian Neymar launched a collection with NFTStar.

Despite being among the bottom performers, decentralized exchange aggregator 1inch Network (1INCH) concluded a $175 million Series B investment round and these funds will be used to expand the protocol's utility.

Tether'due south premium and the futures' perpetual premium held upward well

The OKEx Tether (USDT) premium measures the difference between China-based peer-to-peer (P2P) trades and the official U.S. dollar currency, and in the by week, it decreased slightly.

OKEx USDT peer-to-peer premium vs. USD. Source: OKEx

Currently the indicator has a 98% reading, which is slightly bearish, signaling weak demand from crypto traders to convert cash into stablecoins. Even at its best moment over the by ii months, it failed to surpass 99%, and so Chinese players have not been excited about the general market place.

The overall impact of last week's correction was a drop in the total futures open up interest, down 28% to $xvi.7 billion. Nevertheless, the motion was expected since the total market cap retraced and some $iii.nine billion worth of liquidations took place during the week.

More importantly, the funding rates on Bitcoin and Ethereum futures speedily recovered from the Dec. 3 cost crash. Even though longs (buyers) and shorts (sellers) are matched at all times in any futures contract, their leverage varies.

Consequently, to balance their gamble, exchanges will charge a funding rate to whichever side is using more leverage and this fee is paid to the opposing side.

BTC and ETH perpetual futures 8-60 minutes funding rates. Source: Coinglass.com

Data reveals that a modest bearish trend occurred on December. 3 and 4 every bit the 8-hour funding rate went below goose egg. A negative funding rate shows that shorts (seller) were the ones paying the fees, but the movement faded equally soon every bit BTC and ETH prices bounced 15% from their lows.

The above data might not sound encouraging, but because that Bitcoin suffered considerable losses this week, the overall marketplace structure held nicely. If the situation was worse, i would definitively non await a 99% Tether premium or a positive perpetual funding rate.

The views and opinions expressed hither are solely those of the writer and practice not necessarily reflect the views of Cointelegraph. Every investment and trading move involves run a risk. You should bear your own research when making a conclusion.