Highlights
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This article previews Binance Research's recent report analyzing last month's key cryptocurrency developments.
Although July 2023 was relatively slow, altcoins saw a surge following favorable regulatory developments.
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Today we will explore the main Web3 developments in July 2023 to provide an overview of the current state of the cryptocurrency ecosystem. We'll analyze the performance of the cryptocurrency, DeFi and NFT markets before taking a look at the main events to watch out for in August.
Crypto market performance in July 2023
July 2023 was a relatively slow period for cryptocurrency markets, with overall capitalization increasing by just 1.0%, the smallest monthly change so far this year. This was partly due to declining expectations surrounding Exchange Traded Funds (ETF) filings in June. However, altcoins saw a spike in activity following the outcome of the US Securities and Exchange Commission (SEC) lawsuit against Ripple, in which the judge ruled that XRP is not a security when sold to the public in the Secondary market.
Monthly change in cryptocurrency market capitalization (%)
Monthly price performance of top 10 coins by market capitalization
Source: CoinMarketCap (July 31, 2023)
XRP was the best-performing asset in July, as its price rose a notable 47.4% following a favorable ruling in the SEC vs. Ripple. The momentum reverberated throughout the altcoin space and increased the prices of other tokens, such as SOL and MATIC. With Twitter's trade name change to
BTC and ETH were the worst performing assets among the top 10 coins by market capitalization, as their prices fell 4.1% and 4.0%, respectively. Following a flurry of spot bitcoin ETF filings in June, the hype gradually died down as investors now await the SEC's next decisions on these filings.
Decentralized Finance (DeFi)
Decentralized finance (DeFi) markets fell 7.7% in total value locked (TVL) to $44.8 billion. The composition of the main blockchains by TVL remained unchanged overall. Ethereum remained at 56.0%; Tron by 14.2%, and BNB Chain by 8.2%.
TVL share of major blockchains
Over the year, TVL on DeFi decreased significantly and TVL on Ethereum fell another 12.0% to $22.9 billion in July. Additionally, several DeFi protocols suffered hacks, leading to tens of millions in losses. Curve's TVL fell 56.6% due to a $70 million re-entry attack, which caused a contagion effect on protocols that rely on its liquidity. This included Convex Finance, which declined 58.2% over the same period. On the other hand, Multichain suffered a loss of $130 million due to a vulnerability, causing Fantom's TVL to drop below $65 million.
Tokens no fungibles (NFT)
Monthly trading volume for NFT
Source: Cryptoslam (July 31, 2023)
NFT trading volume continued to decline, with Nansen's NFT-500 and Blue-Chip-10 indices extending these declines. This trend was consistent with the previous months and reached a new all-time low in July for both 2022 and 2023. This has been a difficult year for NFTs so far. The sector is clearly underperforming, particularly when compared to the overall increase in crypto market capitalization.
next events
In order to help users stay up to date with the latest Web3 news, Binance Research has summarized the notable events and token unlocks for the coming month. Stay alert for these upcoming events in the blockchain space.
Highlighted events in August
Fuente: Binance Research
Largest USD Token Unlock
Fuente: TokenUnlocks, Binance Research
Binance Research
Binance Research team members are committed to providing objective, independent and in-depth analysis of the crypto space. They publish informative opinions on Web3 topics, including but not limited to the cryptocurrency ecosystem, blockchain applications, and the latest developments in the market.
This article was just a review of the full report, which contains more information and an analysis of the most important market charts from the past month. It also goes in-depth about Telegram bots, real-world assets, the Layer 2 landscape, and more. With so much valuable content, you won't want to miss out on this exclusive information.
To read the full version of this report, click here. Additionally, you can find other in-depth research on the latest Web3 developments by visiting the Insights and Analysis page on the Binance Research website. Take the opportunity to empower yourself with the latest information in the field of cryptocurrency research.
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