currencyjournals — Simply earlier than the massive sell-off in early August, July introduced a quick respite for the cryptocurrency market with some optimistic indicators after a largely detrimental second quarter.

In line with a report from JP Morgan, the full cryptocurrency market capitalization was about $2.28 trillion on the finish of July, up 1% from the earlier month and 42% because the starting of the yr, almost double the determine from a yr in the past.

Regardless of the rise in buying and selling quantity, market cap traits different throughout tokens and crypto belongings. 's market cap grew to $1.28 trillion, up 3% month-on-month. In distinction, 's market cap fell 6% month-on-month to $388 billion, primarily attributable to web outflows from the newly launched Spot ETH ETF in the USA. Different main altcoins comparable to and likewise noticed value declines in July.

“The full cryptocurrency market capitalization is now at roughly $2.28 trillion, up 1% from final month and 42% because the begin of the yr, almost double what it was a yr in the past,” JPMorgan wrote.

Moreover, the report states that buying and selling volumes have seen a gradual restoration, with common every day buying and selling quantity (ADV) rising 9% month-over-month. Each Bitcoin and Ethereum noticed double-digit quantity development, with Bitcoin's common every day buying and selling quantity rising 18% and Ethereum's rising 23%. Nevertheless, regardless of these will increase, DeFi and NFT buying and selling volumes proceed to say no.

“TradingView estimates that common every day buying and selling quantity (ADV) associated to the general cryptocurrency market elevated 9% month-over-month in July,” JPMorgan stated. “This sequential enchancment marks the primary restoration in buying and selling quantity since Q1 24.”

One of many key occasions in July was the launch of spot ETH ETFs within the U.S. Regardless of preliminary enthusiasm, web redemptions reached $484 million within the first seven buying and selling days. The SEC's approval of those ETFs and their subsequent efficiency highlighted how tough it’s to draw sustained inflows.

“The group of 9 accepted U.S. spot Ethereum ETFs estimates that complete web redemptions had been -$484 million in July, together with the seven buying and selling days,” JPMorgan defined.

The report additionally famous that conventional finance (TradFi) asset managers are more and more concerned in blockchain know-how and tokenization initiatives, with Hamilton Lane launching a fund on the blockchain and Goldman Sachs planning to launch three tokenized merchandise by the top of the yr, for instance.

“The rising variety of tokenization initiatives solely additional validates the use circumstances and utility of this know-how,” JPMorgan famous.

Bitcoin mining has develop into extra aggressive in July, with the month-to-month common community hashrate rising by 5%, however profitability has fallen to an all-time low, with miners incomes a median of $46,000 per exahash (EH/s) in every day block reward income, the bottom it has ever been.

“The month-to-month common community hashrate elevated by 30 EH/s (5%) to 615 EH/s in July, marking the primary month-to-month enhance in mining competitors/problem because the halving,” the report stated.