Daily News | BTC Led Market to Minor Rebound, Did Market Sentiment Reach Bottom in August?
Crypto Daily Digest: Overall market trading was sluggish in August, with DeFi protocol revenue dropping by over 20%
Net inflow of August spot Ethereum ETF was only $6.83 million
According to Trader T data monitoring, the overall net inflow of spot Ethereum ETFs in August was only $6.83 million ($477 million outflow since launch), and the Ethereum price dropped from $3,232 to $2,513.
BlackRock ETHA increased its holdings by 146,658 ETH (approximately $390 million) and held 336,056 ETH (total inflow of $1.01 billion);
Fidelity FETH had an inflow of $114 million, total inflow of $392 million;
The inflow of Bitwise ETHW was $29 million, with a total inflow of $314 million;
Grayscale mini ETH had an inflow of $38 million, with a total inflow of $239 million;
The outflow of Grayscale ETHE in August was $583 million, with a total outflow of $2.56 billion since its launch on July 22.
LayerZero Foundation announced that the Community Initiative has been launched and will distribute 5 million ZRO tokens as rewards
According to official sources, the LayerZero Foundation announced that the Community Initiative is now online, and users have three new roles to choose from: community members, builders, or content creators.
Users can elevate their level by having a significant impact in the community, such as leading discussions, building innovative projects, or creating content showcasing LayerZero. The community plan will distribute 5 million ZRO tokens as rewards, and the initial distribution for community members before June will be 25,000 ZRO.
DeFi protocol fee revenue decreased by 24% in August
According to The Block, the fee income earned from DeFi protocols in August decreased by 24.4% compared to July, reaching the lowest point since February this year.
The expense income in August was significantly lower than the $381.45 million in July, and even much lower than the $494.14 million in March. However, last month’s agreement fees were still higher than February’s $265.18 million.
The fee amount is usually used to measure the popularity and usage of DeFi protocols. In that month, the cumulative cost of DeFi protocols (excluding the underlying layer) was $288.88 million. Lido has the highest expense income at $76.18 million, followed by Uniswap, Jito, and PancakeSwap.
Market Trends: The market has generally rebounded, and the future trend is still unclear
Mainstream Coins
BTC rebounded slightly yesterday to above $59,000. This short-term rebound mainly benefited from the impact of yesterday’s US stock market shutdown, with BTC leading the entire crypto market‘s short-term rebound. However, the current trend is still unclear and the market lacks clear directional guidance.
ETH also followed the rise of Bitcoin and rebounded back to around $2,550. Although ETH has followed closely behind BTC, it has not been able to break out of its independent strong market trend, indicating that the market still holds a reserved attitude towards ETH’s independence.
There has been a general rebound in Altcoins, especially those related to the Bitcoin eco. For example, tokens such as REEF, ORDI, and PIZZA have performed well, indicating an increase in market interest in these tokens.
In terms of data indicators, today’s AHR999 index is 0.64, indicating that the current BTC price is not far from the bottom price. Today’s Fear & Greed Index is 26, indicating that market sentiment is still in a state of fear. Normally, a Fear & Greed Index below 30 is considered to indicate that the market is in a state of extreme fear and may be a buying signal. However, persistent fear may also lead to further market declines and should be treated with caution.
Market Hotspots:
BTC eco: Tokens related to the Bitcoin eco, such as ORDI, REEF, SATS, and PIZZA, have seen a significant increase in performance, becoming the main driving force behind market growth. From the news perspective, there will be more new projects launched in the BTC eco in September. In the absence of obvious hotspots on other public chains, Bitcoin may experience an independent upward trend.
Polifi sector: Political concept tokens such as MAGA and FIGHT have risen by nearly 20%. As the TV campaign between Trump and Harris approaches, market funds are hyping up related sectors in advance. The subsequent trend of this type of political Meme coin still needs to pay attention to whether the two US presidential candidates in this TV election will announce policies that are beneficial to the crypto industry. If there is good news during the election, these tokens may continue to rise.
Macroeconomics: US stock market closed for Labor Day, probability of Fed cutting interest rate by 25 basis points in September rises to 69%
According to CME’s “Federal Reserve Watch”, the probability of the Federal Reserve cutting interest rates by 25 basis points in September is 69%, and the probability of cutting interest rates by 50 basis points is 31%. The probability of the Federal Reserve reducing interest rates by 50 basis points cumulatively until November is 50%, the probability of reducing interest rates by 75 basis points cumulatively is 41.5%, and the probability of reducing interest rates by 100 basis points cumulatively is 8.5%.
Conclusion
Overall, Bitcoin has led the market to a short-term rebound, but the future trend is still uncertain. Ethereum and Altcoins have shown a trend following Bitcoin, but lack a strong independent market. Data indicators show that market sentiment is still sluggish, but the AHR999 index suggests that it may be close to a bottom fishing opportunity. In terms of market hotspots, the Bitcoin eco and political concept tokens have become the main focus of attention, and it is necessary to closely monitor changes in related news and policies in the future.
Investors should remain cautious in the current market environment, focusing on market sentiment and data indicators, as well as changes in market hotspots and news, in order to make more informed investment decisions.
