Crypto

• Austin from Solana tweeted about Solana’s new network extensions
• Kyle Samani discussed how Solana rollups will differ from Ethereum’s
• Prasad observed developments in Solana rollups, including SVM separation and new apps like Magic Block and Spicenet.

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• In Monday’s Crypto Crisp, we took a bearish stance, driven by a worsening economic outlook, with growth falling short of expectations and liquidity conditions looking grim for September.
• Since then, the crypto market has continued its decline.
• While we believe September will likely be challenging for digital assets, it is too extreme to claim the bull market is over.

• Bitcoin and other cryptocurrencies are experiencing significant price fluctuations
• Stablecoins like Tether and USDC have remained stable, providing a store of value
• The narrative around stablecoins as the killer app of crypto raises questions about reliance on existing financial infrastructure and potential systemic risks

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• As we enter a new month, it is a good time to reassess the market outlook.
• Throughout August, we held the belief that the crypto market would gradually recover from its early-month lows.
• While this expectation was partly fulfilled, we now recognize several indicators suggesting a downward trend or, at best, sideways movement throughout September.

• In last week’s Crypto Moves #40, we highlighted that we are on the verge of a significant surge in interest toward decentralized finance, or DeFi. We believe that only a select few DeFi-focused cryptocurrencies truly have the potential to benefit from this anticipated increase in DeFi interest, as this interest is likely to translate into greater monetary rewards for their token holders.
• As we have consistently emphasized, apart from Bitcoin, we only invest in productive cryptocurrencies – those that offer monetary rewards to their token holders, much like dividends from equities.
• In some cases, we may consider investing if we are confident that the cryptocurrency in question will soon become productive.

• Powell’s Pivot: A New Era for Crypto Markets as Interest Rates Shift. Discover how the Fed’s changing stance may ignite new demand in the crypto market.
• BTC’s Rally: Can It Sustain Its Momentum Amidst Shifting Economic Policies? Explore the critical market movements and the implications of BTC’s recent surge.
• Stablecoin Growth: The Catalyst for the Next Crypto Boom? Understand the vital role of stablecoins and credit in the future of crypto market growth.

• Over the weekend, both Bitcoin and Ethereum reached their highest levels since the crash three weeks ago.
• As we have emphasized repeatedly in recent weeks, we continue to anticipate a gradual yet steady recovery of the crypto market, with prices to return to their pre-crash levels over the next month.
• Now, let us dive into this week’s top news.

• The summer of 2020 marked a pivotal moment for decentralized finance (DeFi), as it gained significant momentum, reflected by the surge in Total Value Locked (TVL) across DeFi protocols.
• Chart 1: Total Value Locked (TVL) in 2019 and 2020While DeFi continued to grow through 2021, it was the rapid expansion during the summer of 2020 that left a lasting impression on the community, earning the period the moniker ‘DeFi Summer.’Chart 2: Total Value Locked (TVL), All TimeAlthough the actual season may be shifting towards winter, ‘DeFi Summer’ is making a comeback, but the Total Value Locked is still quite far from its 2021 peak.
• However, it is likely only a matter of time before we surpass that all-time high – potentially as soon as the first half of 2025.

• The crypto market has been pretty boring lately, with low volatility and no significant movements in either direction for weeks.
• The past week’s low volatility, combined with the ongoing drop in exchange balances for Bitcoin and Ether, strengthens our view that we are in an accumulation phase.
• This suggests the market is gearing up for a move upward rather than downward.

• In recent years, we have seen a surge in new crypto projects launching with billion-dollar market capitalizations right from the start.
• This trend includes projects like Aptos, Sui, Celestia, and others.
• If you examine the top 100 cryptocurrencies, it is evident that the list increasingly comprises recently launched, highly hyped cryptocurrencies that boast valuations that would make many Nasdaq-listed companies envious.

• Survive the purge, seize the opportunity: Last week’s extreme market volatility presents exceptional forward-looking opportunities for those who remain resilient.
• Liquidation waves: A path to equilibrium: Learn how major market disturbances like last week’s can create ripples that take time to settle, offering strategic consolidation points.
• Unlocks and ETF flows: What’s next for crypto? Discover how upcoming token unlocks and recent ETF trends may shape the near-term outlook for key crypto assets.

• As we noted in last week’s Crypto Crisp, we anticipated a gradual but steady recovery in the market to the levels seen before last weekend’s sharp decline.
• This prediction has proven accurate so far, with some recovery since last week, though we are still far from fully regaining those levels.
• We remain confident that it could take the rest of August to reach those levels again.