On Monday, the whole cryptocurrency market mood turned negative after the US dollar gathered strength on the back of the re-appointment of Jerome Powell as the Fed Chair. US President Joe Biden nominated Powell against Lael Brainard and extended his tenure for four more years. During the previous two years, Powell has been praised for handling the financial crisis caused by coronavirus by keeping rates near zero level. Powell is considered a person who has a less-dovish stance towards a monetary policy, which means his bets of interest rate hikes are back on the table and, hence, the US dollar strengthened. The strong US dollar pushed AAVE/USD lower for the day as they share a negative correlation.

Recent data has shown that AAVE overtook Compound in DeFi lending despite being launched in 2020. In October, the total value locked in DeFi market crossed $200 billion, out of which the largest share was provided from AAVE with $18.89B followed by lending protocols Curve with $18.01 B, MakerDAO with $16.4B, Instadapp with $12.16B, and Compound with $12B.

XLM/USD closed at $0.33616 after setting a high of $0.35616 and a low of $0.33177. XLM/USD dropped for a third consecutive session on Monday amid the negative market mood as well as because of the strength of the US dollar.

The prevailing negative market trend, driven by the strength of the US dollar, added further pressure on XLM/USD on Monday and forced it to follow in the footsteps of Bitcoin and other major cryptocurrencies.

Stellar Live Rate

Furthermore, the increased regulatory stance of many countries towards cryptocurrencies added to the negative pressure on the whole market. Countries including Israel and Laos have developed new cryptocurrency-related regulations which will make transaction parties more visible and limit cryptocurrency mining. The rising adoption of cryptocurrencies across the world has encouraged governments to impose regulations on the industry, which has gained massive traction lately.

The rising number of cybercrimes and money laundering has forced governments to start thinking about placing regulations on the industry, keeping the market mood negative.