CoinEx Insight has released a comprehensive report on the cryptocurrency market in August, highlighting the market’s significant volatility, recovery and subsequent key developments in August. This report provides insights into the changing dynamics of the cryptocurrency space from CoinEx Research, helping investors and stakeholders navigate the complexities of the ever-changing market.
Table of Contents
ToggleBank of Japan raises interest rates
The Bank of Japan's interest rate hike caused significant market turmoil, triggering a global sell-off in the week of August 4. While U.S. stocks quickly rebounded from losses, the cryptocurrency market failed to emulate this recovery. Bitcoin initially showed signs of a gradual recovery, reaching August's opening levels, but then fell further, ending the month close to $58,000. The balance of Bitcoin on exchanges fell to its lowest level in 2024, at 2.39 million BTC, indicating that investors are increasingly inclined to hold Bitcoin rather than short-term speculation.
market conditions
The market is in a deadlock, investors lack clear direction, and relevant market indexes have slipped into "extreme fear" territory. The Federal Reserve's rate cut in September was widely seen as consensus and appeared to be fully priced in by the market. This factor may provide buying opportunities for long-term investors willing to tolerate volatility.
Bitcoin Staking
On August 22, Babylon launched Bitcoin lock-up, which aroused enthusiastic response and soon reached the full subscription of 1,000 BTC. In just three hours, about 12,700 users fully subscribed. The measure temporarily spiked Bitcoin mining fees to 800 sat/vB, reflecting strong demand for staking opportunities.
Ethereum’s struggles
The Ethereum ETF experienced positive net flows in August, with a net inflow of $6.2 million, while July saw a significant net outflow of $541.8 million. Ethereum price continues to face downward pressure despite small net inflows into the Ethereum ETF. This is happening even as Grayscale’s ETHE outflows slow down, indicating that Ethereum continues to face challenges in maintaining price stability. But Ethereum’s core value proposition, especially in the DeFi space, remains strong and sustainable.
The rise of Sui
Sui has a strong performance in the GameFi field and is gradually gaining attention. Supported by the launch of Grayscale’s new trust product and strong endorsement from key opinion leaders (KOLs) and investors. Sui's unique value proposition makes it stand out, even when compared to Solana, highlighting the competitive nature of blockchain platforms.
Ton ecosystem
The arrest of Telegram founder Pavel Durov caused the price and total value locked (TVL) of Toncoin to drop, causing the price of Toncoin to drop by 20% and the total value locked (TVL) to drop by 30%. However, the community has rallied around, adopting the Resistance Dog meme coin avatar as a symbol of support and resilience.
SunPump on TRON
SunPump is becoming a popular choice among meme currency traders on the Tron platform, facilitating the creation of over 63,000 meme tokens and generating over 25 million TRX in revenue, challenging Pump.Fun’s dominance and demonstrating The dynamic nature of the memecoin market.
Stablecoin issuance
In August, USDT and USDC issued an additional $4 billion, returning to the level last November. Currently, the market is in a period of stagnation due to lack of liquidity and market narrative. The strong inflows of stablecoins indicate that the market has not yet entered an absolute bear market phase similar to that in early 2022 when stablecoins began to outflow.
in conclusion
The CoinEx Research report paints a picture of a cryptocurrency market at a crossroads, influenced by macroeconomic factors and internal dynamics. The findings indicate that while the market faces challenges, there are also opportunities for growth and innovation. As the industry awaits new catalysts, focus will likely remain on regulatory developments and macroeconomic shifts. Looking ahead, the possibility of rate cuts and other economic events could provide the necessary impetus for a market rebound. As stakeholders digest these insights, focus will be on strategic positioning and readiness to capitalize on emerging trends and opportunities.
