Crypto market recap: Bitcoin cools, Ethereum surges while DeFi sets new highs
The cryptocurrency market closed August with a blend of corrections, record-breaking gains, and accelerating institutional activity.
According to a report by Cryptorank, Bitcoin saw a moderate pullback, Ethereum touched fresh highs, and DeFi protocols achieved unprecedented growth, showcasing the sector’s evolution toward real utility and institutional adoption.
Bitcoin correction amid steady institutional inflows
Bitcoin ended August with a 6.4% correction, cooling after four straight months of all-time highs.
Historically, late summer and September have been weak periods for both Bitcoin and equities.
However, the broader outlook remains constructive.
Global institutions and corporations continue to increase holdings, while US policymakers are exploring budget-neutral ways to expand reserves.
ETF inflows are also cushioning Bitcoin’s price, helping it transition into a mature, lower-volatility asset.
This reduced volatility strengthens Bitcoin’s case as an institutional-grade investment, positioning it for steadier long-term growth.
Ethereum benefits from legislation and bullish momentum
Ethereum dominated the month’s headlines by climbing to a new record of $4,948 before settling near $4,400. The rally was fueled by its relative undervaluation versus Bitcoin and US legislative support for DeFi, of which Ethereum remains the cornerstone.
With ETF inflows rising and ETH shifting into institutional hands, volatility is easing. Analysts say Ethereum could test $8,000 if Bitcoin stabilizes at $100,000, reaffirming its late-cycle outperformance trend.
Solana, Avalanche, Hyperliquid and Arbitrum power L1 and L2 growth
Layer-1 and Layer-2 ecosystems delivered standout performances. Solana reached $215, processing 10B monthly transactions, supported by treasury fund-raising efforts from Galaxy and Pantera.
Avalanche’s TVL neared $4B, with Grayscale and Toyota partnerships driving adoption.
Hyperliquid hit record volumes of $405B in perps trading, with $110M in token buybacks strengthening its ecosystem.
Arbitrum saw 22.9M weekly transactions and $2.95B in inflows, reinforcing its gaming and stablecoin presence.
DeFi protocols and altcoins surge
DeFi protocols cemented their status, with Aave topping $70B in TVL and surpassing all but 37 US banks.
Pendle and Morpho crossed $10B TVL each, while Ethena became the third-largest stablecoin issuer.
Meanwhile, altcoins saw sharp divergences: BNB hit an all-time high of $899, MYX rallied 1,000%, while YZY, linked to Kanye West hype, collapsed from a $3B peak to $500M.
Memecoins also shifted course, as Pump.fun rebounded to nearly 90% market dominance after launching a major buyback program, outpacing rivals.
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Bitcoin price stalls at $115K ahead of Fed decision, altcoins lose momentum as AERO, MNT lead
Crypto market recap: Bitcoin cools, Ethereum surges while DeFi sets new highs
The cryptocurrency market closed August with a blend of corrections, record-breaking gains, and accelerating institutional activity.
According to a report by Cryptorank, Bitcoin saw a moderate pullback, Ethereum touched fresh highs, and DeFi protocols achieved unprecedented growth, showcasing the sector’s evolution toward real utility and institutional adoption.
Bitcoin correction amid steady institutional inflows
Bitcoin ended August with a 6.4% correction, cooling after four straight months of all-time highs.
Historically, late summer and September have been weak periods for both Bitcoin and equities.
However, the broader outlook remains constructive.
Global institutions and corporations continue to increase holdings, while US policymakers are exploring budget-neutral ways to expand reserves.
ETF inflows are also cushioning Bitcoin’s price, helping it transition into a mature, lower-volatility asset.
This reduced volatility strengthens Bitcoin’s case as an institutional-grade investment, positioning it for steadier long-term growth.
Ethereum benefits from legislation and bullish momentum
Ethereum dominated the month’s headlines by climbing to a new record of $4,948 before settling near $4,400. The rally was fueled by its relative undervaluation versus Bitcoin and US legislative support for DeFi, of which Ethereum remains the cornerstone.
With ETF inflows rising and ETH shifting into institutional hands, volatility is easing. Analysts say Ethereum could test $8,000 if Bitcoin stabilizes at $100,000, reaffirming its late-cycle outperformance trend.
Solana, Avalanche, Hyperliquid and Arbitrum power L1 and L2 growth
Layer-1 and Layer-2 ecosystems delivered standout performances. Solana reached $215, processing 10B monthly transactions, supported by treasury fund-raising efforts from Galaxy and Pantera.
Avalanche’s TVL neared $4B, with Grayscale and Toyota partnerships driving adoption.
Hyperliquid hit record volumes of $405B in perps trading, with $110M in token buybacks strengthening its ecosystem.
Arbitrum saw 22.9M weekly transactions and $2.95B in inflows, reinforcing its gaming and stablecoin presence.
DeFi protocols and altcoins surge
DeFi protocols cemented their status, with Aave topping $70B in TVL and surpassing all but 37 US banks.
Pendle and Morpho crossed $10B TVL each, while Ethena became the third-largest stablecoin issuer.
Meanwhile, altcoins saw sharp divergences: BNB hit an all-time high of $899, MYX rallied 1,000%, while YZY, linked to Kanye West hype, collapsed from a $3B peak to $500M.
Memecoins also shifted course, as Pump.fun rebounded to nearly 90% market dominance after launching a major buyback program, outpacing rivals.
The post Crypto market recap: Bitcoin cools, Ethereum surges while DeFi sets new highs appeared first on Invezz
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