July Crypto Market Review: Multiple Indicators Experience Rebound

In the just-concluded July, the crypto market finally welcomed a long-awaited Rebound, with several indicators showing significant increases. With the approval and listing of the US spot Ethereum ETF, market confidence has somewhat recovered. This article will present the overall situation of the encryption market over the past month through various key data.

Increase in On-Chain Transaction Activity

In July, the adjusted on-chain total transaction volume of Bitcoin and Ethereum grew by 31.8%, reaching $445 billion. Among them, the on-chain transaction volume of Bitcoin increased by 34.7%, while Ethereum's increase was 27.7%. This indicates a significant increase in market trading activity.

At the same time, the adjusted transaction volume of stablecoins on the blockchain increased by 18.8%, reaching $997.4 billion. The total supply of stablecoins also saw a slight increase of 1.2%, rising to $144.3 billion. In the stablecoin market, USDT and USDC still dominate, with market shares of 78.9% and 17.1%, respectively.

Miners' income and staking rewards have slightly decreased.

Despite the overall market showing an upward trend, Bitcoin miners' income slightly decreased by 1.2% in July, falling to $950.2 million. Similarly, Ethereum staking income also dropped by 6.6%, down to $270.2 million.

It is worth noting that in July, the Ethereum network destroyed a total of 17,114 ETH, worth approximately $56.4 million. Since the implementation of EIP-1559 in early August 2021, Ethereum has cumulatively destroyed about 4.35 million ETH, with a total value of $1.23 billion.

NFT market continues to cool down

In July, the trading volume of NFTs on the Ethereum chain saw a significant decline again, dropping by 49.6% to approximately $140.3 million. This indicates that the enthusiasm in the NFT market is still continuing to cool down.

Exchange Trading Volume Rebound

The spot trading volume of compliant centralized exchanges (CEX) rebounded in July, increasing by 6.7% to $702.7 billion. This indicates that investors' trading willingness has recovered.

The ETF market performs brilliantly

In July, the net inflow of spot Bitcoin ETFs increased significantly by 473%, reaching $3.15 billion. This data reflects the rising interest of institutional investors in crypto assets.

Futures and Options Market Active

In the crypto futures market, the open interest for July Bitcoin futures rose by 15.6%, while the open interest for Ethereum futures fell by 5.6%. In terms of trading volume, the trading volume for July Bitcoin futures increased by 65%, reaching $1.66 trillion; the trading volume for Ethereum futures grew by 43.1%.

The open interest in CME Bitcoin futures grew by 13.5%, rebounding to $10.6 billion, with the average daily trading volume increasing by 12.3% to approximately $5.05 billion.

The average monthly trading volume of Ethereum futures has surged to $755.5 billion, an increase of 43.1%.

In the options market, July Bitcoin options open interest increased by 35.9%, while Ethereum options open interest rose by 7.1%. Bitcoin monthly options trading volume grew by 31.9%, reaching $56.9 billion; Ethereum options trading volume decreased by 8.1%, falling to $15.5 billion.

Overall, multiple indicators in the July crypto market have shown a rebound, particularly in trading volume, ETF inflows, and futures trading. However, the NFT market continues to cool down, with miner income and staking yields slightly declining, which still requires attention. The market seems to be gradually restoring confidence, but investors should remain cautious and closely monitor subsequent developments.