The main cryptocurrency market recovered earlier losses over the weekend. BTC briefly approached $22,000 before falling below $21,000 support, snapping a four-day winning streak on Sunday. At the time of writing, the largest cryptocurrency by market cap was up 1.8% in the past 24 hours, once again back above $22,000 and the 100 hourly moving average. BTC has found a firm footing around the $21,000 area and is now looking to accelerate its gains.

However, some analysts believe that the recent price rally may not translate into momentum for a further recovery in BTC. On-chain metrics show that over 80% of the total dollar-denominated wealth invested in BTC has been dormant for more than three months. And the dormant supply ratio can be used as an indicator to estimate the end of a bear market – past bear market cycles usually come to an end after the ratio exceeds the 80% mark.

While still highly correlated with BTC, ETH’s recent gains have outpaced the largest cryptocurrency by market cap. After surging 6% over the same period, ETH has accumulated momentum and is ready to test the $1,500 mark. Most major non-mainstream coins are on the rise, with MATIC leading the gains with double-digit percentage gains over the same period.

futures open interest leverage ratio

Leverage in the futures market has begun to trend upwards after investors’ speculation of a rate hike turned to a 75bps rate hike at the end of July. However, over the past weekend, high volatility continued to plague the derivatives market, with major digital asset prices fluctuating wildly.

The BTC perpetual contract funding rates of major centralized exchanges have increased significantly. A trend reversal could be in sight in the short-term as bears show signs of exhaustion. However, the long-term outlook remains uncertain. In the options market, implied volatility rose and remained relatively unchanged thereafter, while options skew, albeit in negative territory, moderated.

Otherside embarks on its first metaverse journey

The much-anticipated gaming platform Otherside has opened the experience to select players.

On Saturday, Yuga Labs, the team behind Otherside, invited 4,300 players to take an immersive tour of its APE-inspired online platform.

Players invited to take part in this metaverse journey are holders of the in-game digital parcel “Otherdeed”.

Shortly after this journey, Otherside released a short white paper announcing that only Otherdeed holders and “selected third-party developers” will be able to participate in the game during Phase 1, who will contribute and help build the platform Build Otherside’s core functionality.