In July, the global cryptocurrency market value rose by 6.1%, driven by positive developments in the industry. These include value-added news from the regulatory front and significant growth in major Web 3.0 projects.
Still, there are concerns that could impact industry trends in August. These include redemptions from Mt. Gox and BTC transfers by the U.S. government.
Key Cryptocurrency Trends Revealed by Binance Research
In July, the cryptocurrency market saw a 6.1% surge in market capitalization due to the approval of nine Ethereum spot ETFs. This led to an influx of new capital into the market, similar to the impact seen with Bitcoin earlier in the year. Additionally, reports of the German government selling 50,000 Bitcoin to a centralized exchange and bullish remarks from Donald Trump helped boost investor sentiment.
Data from DeFiRama showed a 3.5% rise in the decentralized finance (DeFi) industry in July, reaching a record high of $99.3 billion. This increase in Total Deposits (TVL) suggests a growth in collateral value across the industry.
The DeFi ecosystems of CORE, Scroll, and Mantle made significant progress in July. Polymarket saw a surge of over 614% in transaction volume, while Symbiotic’s TVL increased by 283% due to increased reinvestment interest. Solana (SOL) and Ripple (XRP) were highlighted as top-performing altcoins, with Solana’s ecosystem benefiting from increased trading volumes on decentralized exchanges.
NFT Market Sales Decline and the Shift Towards Practical Value
On the other hand, the non-fungible token (NFT) market experienced a 7.1% decline in sales in July. While SOL-based NFT collections saw an increase in transaction volume, major Ethereum collections faced a decline. Immutables sales, however, increased by 75.68% due to continued development.
“Overall, Bitcoin and Ethereum NFT sales declined significantly, but Immutables sales increased by 75.68% due to continued development of the game, including the launch of Illuvium,” the report states.
As NFT sales decline and the market moves towards practical value, it is crucial for creators and platforms to focus on real-world use cases such as proof of ownership, digital identities, and game assets. This shift could potentially hinder innovation within the industry as speculative value decreases.
Although niche markets may still attract interest, the overall market is transitioning towards a more utility-driven approach that prioritizes practicality over speculation.
