July Crypto Market Update: Positive Metrics Before Major Sell-Off
In July, the total cryptocurrency market capitalization reached $2.28 trillion, up 1% month-over-month and 42% year-to-date. This growth, nearly double its value from a year ago, came amidst varying trends in market cap for different tokens and crypto products.
Bitcoin’s market cap grew by 3% to $1.28 trillion, while Ethereum’s market cap contracted by 6% to $388 billion due to net outflows from newly launched spot ETH ETFs in the U.S. Other major altcoins also experienced price declines.
Trading volumes saw a modest rebound in July, with average daily volumes increasing by 9% month-over-month. Bitcoin and Ethereum both saw double-digit volume jumps, but DeFi and NFT volumes continued to drop.
The launch of spot ETH ETFs in the U.S. was a key event, but saw net redemptions totaling $484 million in the first seven trading days. Traditional finance asset managers are increasingly engaging in blockchain technology and tokenization projects, further supporting the utility of the technology.
Bitcoin mining competition increased in July, with the network hashrate rising 5% to 615 EH/s. However, profitability dipped to all-time lows, with miners earning an average of $46,000 per EH/s in daily block reward revenue.