The cryptocurrency market in August showcased a mix of gains and losses, as reflected in a comprehensive analysis by Foresight News and PANews. The report, compiled by Lars, the Research Director at The Block, and translated by Jordan at PANews, provides an in-depth look at the market’s performance through 11 key metrics.
Bitcoin and Ethereum Transaction Decline
The report indicates that the total adjusted transaction volume on the blockchain for Bitcoin and Ethereum decreased by 15.3% in August, falling to $3.77 trillion. Bitcoin’s adjusted transaction volume saw a decline of 12.1%, while Ethereum’s transaction volume dropped by 20.2%. This downward trend can be attributed to various market factors, including regulatory scrutiny and market uncertainty.
Stablecoin Growth Continues
In contrast, the stablecoin market experienced significant growth. The adjusted transaction volume of stablecoins increased by 20.5%, reaching $1.2 trillion. The supply of stablecoins also grew by 2.9%, reaching $1484 billion. USDT and USDC accounted for the majority of the market share, with 78.7% and 17.4% respectively. This growth suggests a rising demand for stablecoins as a reliable store of value in the volatile cryptocurrency market.
Mining and Staking Income Decline
August was a challenging month for miners and stakers. Bitcoin miners saw their income drop by 10.4%, reaching $85.14 million. Ethereum stakers also faced a decline, with their income falling by 19.3% to $21.82 million. This decline in income can be attributed to the decrease in transaction volumes and the overall market downturn.
Ethereum Network Burns ETH
The Ethereum network destroyed 13,467 ETH in August, equivalent to $3.49 million. Since the implementation of EIP-1559 in August 2021, approximately 4.37 million ETH have been destroyed, valued at around $12.3 billion. This mechanism, designed to reduce the supply of ETH, has been a significant factor in the network’s evolution.
NFT Market Continues to Decline
The NFT market on the Ethereum blockchain continued its downward trend in August, with a 12.8% decline in transaction volume, dropping to approximately $12.32 million. This decline reflects the broader challenges facing the NFT market, which has seen a significant correction after the initial hype.
CEX Spot Trading Volume Rises
Compliant centralized exchanges (CEX) experienced a growth in spot trading volume in August, with an increase of 13.7%, reaching $8.775 trillion. This suggests that despite the market downturn, traders are still active, seeking opportunities in the crypto market.
Bitcoin ETF Outflow
August saw a negative net inflow in Bitcoin ETFs, with approximately $422.1 million being withdrawn. This indicates a lack of confidence among investors in the short term, possibly due to regulatory concerns and market volatility.
Futures Market Takes a Hit
In the futures market, the open interest in Bitcoin futures decreased by 17.9%, while Ethereum futures saw a 28.6% decline. The trading volume for Bitcoin futures fell by 20.2%, reaching $1.33 trillion, and Ethereum futures trading volume decreased by 22.2%. The Chicago Mercantile Exchange (CME) also saw a 15.3% reduction in open interest for Bitcoin futures, with the daily average trading volume slightly decreasing by 0.2%.
Ethereum Futures and Options Market Slows Down
Ethereum futures experienced a significant decline in monthly trading volume, falling by $587.5 billion, a 22.2% decrease. In the options market, both Bitcoin and Ethereum saw a decline in open interest, with Bitcoin dropping by 3.8% and Ethereum by 13.9%. However, the trading volume for Bitcoin options reached $53.8 billion, down by 5.4%, while Ethereum options trading volume remained relatively stable at $15.5 billion.
Conclusion
The August cryptocurrency market reflected a complex landscape of gains and losses. While certain sectors, such as stablecoins, saw significant growth, other areas, including mining and staking incomes, experienced notable declines. This volatility underscores the need for investors to exercise caution and stay informed about market trends and regulatory changes. As always, the cryptocurrency market remains unpredictable, and investors should approach it with a well-informed and cautious strategy.
[Disclaimer: The market is risky, and investment requires caution. This article does not constitute investment advice. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investing based on this information is at the user’s own risk.]
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