The cryptocurrency market experienced a period of low performance characterized by declining trading volumes and minimal volatility in August 2023. Despite this, several important events and trends emerged throughout the month, shedding light on the current state of the industry and potential future developments.
Highlight of the Month: Grayscale Investments’ Legal Victory
One of the notable events recorded during the month was Grayscale Investments’ legal victory against the US SEC, which brought optimism for the launch of Bitcoin ETFs. As a pioneering entity in this field, Grayscale Investments faced obstacles in transforming the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF due to regulatory disputes. While many anticipate the eventual approval of spot Bitcoin ETFs, the SEC has postponed decisions regarding seven spot Bitcoin ETF applications, including the highly anticipated application from BlackRock.
Another headline-making development in the cryptocurrency exchange space in August was Coinbase’s launch of the Layer 2 Blockchain called Base. Base quickly gained attention, surpassing 1 million users and exceeding $400 million in Total Value Locked (TVL). This success signifies Base as a profitable venture for Coinbase in a sluggish market.
Furthermore, payment giant PayPal introduced PYUSD, a stablecoin built on the Ethereum network aimed at introducing blockchain to US residents. Despite being an exciting leap, PYUSD did not garner the expected interest from the crypto community due to its centralized structure and limited usability.
Bitcoin and Multiple Altcoins Experience Sharp Price Decline
Overall, August witnessed low volatility in the cryptocurrency market, characterized by a significant liquidation of over $1 billion at the beginning of the month. Bitcoin (BTC) lost 11% of its value throughout the month, and historical data suggests that the turbulent period is not yet over.
Historical data compiled by Cryptorank indicates that September is likely to be a challenging month for the crypto king as well. Despite the uncertainty, two significant events in 2024, the launch of spot Bitcoin ETFs and the 4th block reward halving, support expectations of a rise in the midst of hope.
Meanwhile, altcoins generally followed Bitcoin’s direction, with some altcoins managing to rise amidst market conditions. “Pump and dump” events, exploiting low trading volumes to manipulate prices, were observed. Centralized cryptocurrency exchanges faced decreases in trading volumes throughout the month, impacting their revenues and leading to layoffs.
