Binance: Crypto Market Slumps 13.1% In August, But Recovers On Rate Cut Expectations
In Brief
Binance Research released a new report outlining key developments in the cryptocurrency markets for August.
Analysis division of the cryptocurrency exchange Binance, Binance Research released a new report outlining key developments in the cryptocurrency markets for August.
The study reveals that, over the past month, the cryptocurrency market experienced a strong decline of 13.1% in total market value, influenced by global macroeconomic concerns and weak unemployment data from the United States.
On August 5th, the Bank of Japan‘s decision to raise interest rates led to notable disruptions in global stock markets, particularly impacting Asian indices like the MSCI Asia Pacific Index and Japan’s Nikkei 225 Index, both of which saw sharp declines. This market volatility also affected the cryptocurrency sector, leading to over $819 million in liquidations within a single day.
Following the “flash crash,” the market started to stabilize after United States Federal Reserve Chairman Jerome Powell indicated the possibility of a rate cut in September. Additionally, the United States Bureau of Economic Analysis revised the second-quarter GDP growth rate to 3%, surpassing previous expectations.
Binance Research Reports On Price Performance Of Top Cryptocurrencies And Identifies Decline In NFT Sales
In August, TRX notably outperformed the market, achieving a gain of 19.5%, largely driven by the launch of the SunPump memecoin launchpad. This positive performance led to a 65.6% increase in trading volume and a 245.2% rise in trading volume on the Tron decentralized exchange (DEX), which surpassed $3 billion.
In contrast, BTC experienced an 11.1% decline, influenced by macroeconomic and geopolitical factors. During this period, spot Bitcoin exchange-traded funds (ETFs) saw a net outflow of $142 million, while Grayscale’s GBTC experienced a net outflow of $838 million.
ADA, AVAX, and XRP each experienced declines of approximately 13%, while DOGE fell by 19.8%. The price of TON dropped 20.4% following news of the arrest of Telegram founder Pavel Durov and a six-hour network outage caused by congestion related to the popular memecoin DOGS, which exacerbated the situation.
Moreover, ETH saw a decrease of 24.9% due to reduced on-chain activity, lower gas fees, and substantial outflows from decentralized finance (DeFi) total value locked (TVL). This decline was accompanied by concerns over large ETH liquidations, sell-offs by major players, and underperformance of spot Ethereum ETFs.
However, SOL recorded the largest decline among the top cryptocurrencies, falling 24.4%. Initial enthusiasm for trading the memecoin has diminished due to issues such as rug pulls and hacking incidents, leading to a 27.7% drop in Solana DEX volume and decreased on-chain activity.
Additionally, Binance Research reported that the non-fungible token (NFT) market witnessed a 10.7% decrease in sales volume in August, totaling $383 million. Despite this overall decline, CryptoPunks performed notably well in terms of sales. NFT games such as Guild of Guardians, Sorare, DeGods, and y00ts bucked the trend, achieving substantial increases in trading volume.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
