July Crypto Market Review: Multiple Indicators See Rebound

In the just past July, with the approval and official trading of the US spot Ethereum ETF, most indicators of the crypto market finally showed the long-awaited Rebound. This article will comprehensively analyze the overall situation of the encryption market in the past month through multiple key data.

On-chain transaction activity has significantly increased

In July, the adjusted on-chain total transaction volume of Bitcoin and Ethereum increased by 31.8%, reaching $445 billion. Among them, Bitcoin's adjusted on-chain transaction volume grew by 34.7%, while Ethereum increased by 27.7%. This data indicates that the on-chain activity of major cryptocurrencies was notably active this month.

At the same time, the adjusted on-chain transaction volume of stablecoins also grew by 18.8%, reaching a total of $997.4 billion. The issuance supply of stablecoins saw a slight increase of 1.2%, reaching $144.3 billion. Notably, the market shares of USDT and USDC in the stablecoin market accounted for 78.9% and 17.1%, respectively, continuing to maintain their dominant positions.

Miner income and staking rewards have slightly decreased

Despite the overall upward trend in the market, Bitcoin miners' revenue slightly decreased in July, totaling $950.2 million, a month-on-month decline of 1.2%. Similarly, Ethereum's staking income also saw a decline of 6.6%, dropping to $270.2 million.

Since the implementation of EIP-1559 in early August 2021, the Ethereum network has cumulatively burned approximately 4.35 million ETH, equivalent to 1.23 billion USD. In July alone, 17,114 ETH were burned, worth about 56.4 million USD.

The NFT market continues to be sluggish

In July, the transaction volume of the Ethereum on-chain NFT market saw a significant decline again, dropping by as much as 49.6%, with a total of approximately $140.3 million. This data reflects that the NFT market may still be in an adjustment phase.

Exchange and ETF Performance Shines

The spot trading volume of compliant centralized exchanges (CEX) saw a significant rebound in July, increasing by 6.7% to $702.7 billion. Even more noteworthy is the net inflow of spot Bitcoin ETFs, which surged by 473% to $3.15 billion, indicating strong interest from investors in this new product.

Futures and Options Market Active

In the crypto market derivatives market, July also showed a positive trend. The open interest of Bitcoin futures increased by 15.6%, with trading volume soaring by 65% to $1.66 trillion. Ethereum futures trading volume also grew by 43.1%, although its open interest slightly decreased by 5.6%.

The performance of the Chicago Mercantile Exchange's Bitcoin futures is also strong, with open interest increasing by 13.5% to $10.6 billion, and the average daily trading volume rising by 12.3% to approximately $5.05 billion.

In the options market, the open interest of Bitcoin options increased by 35.9%, and the trading volume grew by 31.9% to $56.9 billion. The open interest of Ethereum options increased by 7.1%, but the trading volume decreased by 8.1% to $15.5 billion.

Overall, the crypto market showed various positive signals in July, especially in terms of trading activity, ETF inflows, and the derivatives market. However, the continued sluggishness of the NFT market and the slight decline in miner income are also worth noting. These data collectively outline a picture of a recovering crypto market that still faces uncertainties.