Here’s why Ethereum, Aave, and ALPHA aren’t impressed with Bitcoin’s latest ‘Elon Candle’.

The Bitcoin (BTC) and altcoins markets lost a total of up to $ 602 billion overnight to a shock caused by Elon Musk.

The billionaire entrepreneur made a U-turn in his decision to accept bitcoin for the electric vehicles offered by his company Tesla. He cited environmental concerns, noting that mining bitcoin requires lots of fossil fuel burns, especially coal.

Bitcoin prices began to drop sharply within the first five minutes of Musk’s tweets in the late hours of Wednesday in the US. Prices continued to plunge into the Asia-Pacific session on Thursday, hitting an intraday low of $ 46,000 at one point, a break from the previous session high of $ 59,592.

Altcoins limited Bitcoin to its overnight losses. Together they lost more than $ 367 billion in market cap, led by massive downward revisions to some of the leading altcoins, including Dogecoin (DOGE), a meme cryptocurrency that has been rocketed to explosive levels recently thanks to Musk’s endorsements.

Ether (ETH), Binance Coin (BNB), Bitcoin Cash (BCH) and Litecoin (LTC) also reported huge declines over the day, having seen gains in previous daily sessions.

Even so, some altcoins managed to weather the brutal crash as they had strong fundamentals in the short term. Let’s take a look at the most notable three.


Aave turned out to be an exceptional performer as almost all of the top altcoins were rejected.

The ERC-20 token, which serves as the governance token on the Aave protocol, ended the session by 11.62% to $ 511 on Wednesday, despite hitting its all-time high of $ 640 earlier in the day. It looked obvious that Musk’s anti-Bitcoin announcement affected Aave as much as other altcoins. But unlike his peers, Aave appeared to be more resilient to sudden releasing pressures.

Aave held its key supports for the moving average against market-wide bearish pressures. Source: TradingView

The token maintained its bullish bias on Thursday, trading for around $ 589 as of 8:13 a.m. GMT.

The basics protected Aave from severe bearish attacks. First, Stani Kulechov, founder of Aave, announced that his decentralized financial money protocol had built a “private pool” for institutional actors. He noted that the new approved pool would serve as an emulator for investors who want to get used to Aave’s credit and lending services before embarking on the decentralized financial ecosystem.

The prospect of institutional exposure maintained Aave’s bullish bias. The upside sentiment was further fueled by Aave’s growing liquidity pool. According to DeFi analytics platform DefiLlama, the company now holds $ 12.83 billion, up from around $ 2 billion earlier this year.

Alpha Finance (ALPHA)

The next asset in the queue that almost got caught in the waning spree of altcoins but escaped nonetheless is Alpha Finance.

The decentralized asset management platform, which now runs a proprietary leveraged yield farming protocol called Alpha Homora, enables its users to submit proposals and vote on operational and strategic decisions if they own ALPHA, the native token. You can also earn ALPHA by providing liquidity to Alpha Finance’s pool.

The Elon Musk shocker prompted ALPHA to take a breather from its predominant uptrend on Wednesday, testing its two-month high for a possible bullish breakout. The ALPHA / USD exchange rate fell nearly 23% from its high of $ 2.465 on Wednesday.

However, the couple quickly followed their moves on supportive upside foundations, including a new partnership start and the continued success of the Alpha Homora Protocol.

ALPHA is waiting for a breakout move above the red horizontal resistance trendline. Source: TradingView

The total volume in the Alpha Homora pools was $ 1.35 billion on Monday compared to the current $ 1.37 billion. At the beginning of 2021, the total locked value was approximately $ 188.5 million. The spike shows that Alpha Homora has run successfully so far.

ALPHA / USD rebounded more than 20% in Thursday’s session, with its recovery steps in line with those of the Alpha Homora TVL. Meanwhile, Alpha Finance announced the launch of Alpha Oracle Aggregator with data from two of the largest data oracle providers, Band Protocol and Chainlink, to “ensure security, scalability and flexibility”.

Bitcoin’s declines have done worryingly little to offsetting ALPHA’s general upside.


The positive correlation of Ether (ETH) with Bitcoin led to a certain amount of lost profits on Wednesday evening. Still, the second largest cryptocurrency by market capitalization remained stronger in the medium term, similar to Aave and Alpha Finance.

The main takeaway from Ether’s decline was its ability to stay above key support levels (moving average waves) despite a strong history of correlation with Bitcoin trends. The ETH / USD exchange rate closed the previous session nearly 8.45% to $ 3,826 from its intraday high of $ 4,055 on Thursday.

Ether bulls buy the dip as the price neared the 20-day EMA. Source: TradingView

Major factors that continue to contribute to Ether’s rise as a blockchain project and as an investment object include the rise of non-fungible tokens – digital assets that represent ownership of unique virtual objects – and DeFi.

The upcoming upgrade in London in July, which proposes moving the Ethereum blockchain from an energy-intensive proof-of-work to a faster proof-of-stake, promises lower transaction fees and scalability. Bulls expect more crypto projects to go on board and the demand for ETH tokens will increase.

ETH / USD maintains its seven-day profitability – now up 11% – unlike other altcoins. Aave and Alpha Finance were also up 25% and 13%, respectively, over an adjusted seven-day period.

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