After a fantastic performance in the first quarter of 2021 and reaching an all-time high in May, the value of the global crypto market dipped significantly in the last month two months.
According to recent data, the combined value of all crypto coins plunged by 48% since May reaching $1.32trn last week. However, this figure still represents a 76% increase year-to-date.
Bitcoin’s Market Cap Up by 13% YTD, Ethereum Soared by 190% Despite Crypto Price Crash
The year 2020 was a fantastic year for crypto investors, with the combined value of all digital coins circulating in the crypto space surging by 300% YoY to $758bn. This was even above the market cap reached in 2017, considered as the break-out year for Bitcoin and other digital coins.
However, 2021 witnessed even more impressive growth, with many of the major crypto coins reaching their all-time highs. The CoinMarketCap data show the global crypto market cap soared by 130% in the first three months of 2021 jumping to over $1.8trn. Two months later it hit an all-time high, with the combined value of all crypto coins soaring to $2.5trn on May 12.
However, two weeks later, this figure almost halved to around $1.3trn. The unexpected pullback in Bitcoin and other cryptocurrencies came as a flurry of negative headlines and catalysts, from Tesla CEO Elon Musk to a new round of regulations by the Chinese government, causing a massive hit for the entire sector.
Statistics show that Bitcoin’s market cap dropped by 44% since May reaching $617bn last week. However, this still represents a 13% increase since the beginning of the year.
The market cap of Ethereum, as the world`s second-largest cryptocurrency, soared by 190% YTD, despite the recent crypto price crash. In January, the combined value of all Ethereum coins amounted to $84.7bn. After reaching an all-time high of $497bn in May, this figure dropped to $245bn last week.
Tether Witnessed the Biggest Growth Among the Top Three Cryptocurrencies
However, the CoinMarketCap data show Tether witnessed the most significant market cap growth among the top three cryptocurrencies. In January, the market cap of the world’s most used stable coin amounted to $21bn. By the end of March, this figure jumped to $40bn and continued rising. Last week, it stood at $62.2bn, a massive 196% increase YTD.
Besides impressive market cap growth, Tether also ranked as the most traded coin in the crypto space. Statistics show the world’s most widely used cryptocurrency, hit $2.3trn in monthly trading volume, almost double than Bitcoin and 2.5 times more than Ethereum.
Top 10 Most Traded Cryptos in July
The growing number of investors continues choosing digital coins as an investment asset, with some cryptocurrencies drawing much more attention than others.
According to data presented by BlockArabia, besides Tether, Bitcoin, and Ethereum, as the world’s three most traded cryptocurrencies, some other crypto coins also witnessed an increased trading volume last month. Here is the list of the ten most traded cryptos in July.
Bitcoin Trading Volume Almost Halved, Ethereum Down by 43% in a Month
The CoinMarketCap data showed Tether still represents the most important coin in the crypto space, with a monthly trading volume of $1.48trn in July, nearly the same value as in June. Still, its market cap slightly dropped last month to $61.8bn, compared to $62.4bn on the first day of July.
Other top cryptocurrencies witnessed a significant drop in their 30-day purchase volume. During July, the price of the world’s most expensive cryptocurrency, Bitcoin, jumped by 26% reaching $41,963 last week. However, the trading volume of the leading crypto coin almost halved in the last 30 days, falling from around $1.2trn in June to $642.7bn in July.
Ethereum also witnessed a significant drop, with its monthly trading volume falling by 43% to $505.9bn in July. However, its market cap increased by almost 30% in this period, rising from $237.8bn to $303.5bn.
EOS, the fourth most-traded crypto in June, didn’t make it to the top 10 list last month. In fact, statistics show its trading volume plunged by 92% compared to June, falling from a massive $288.9bn to only $21bn.
Although its trading volume dropped by 25% to $194.4bn in July, Dogecoin still climbed one spot to the fourth most-traded crypto globally. Binance USD rounds the top five list with $125.2bn in monthly trading volume.
PlayDapp and WETH Trading Volume Surged in July
Statistics show significant changes in the other half of the list. Polygon, Bitcoin Cash, Chainlink, and Stellar, which all witnessed impressive trading volume in June, also didn’t make it to the top ten list last month.
The trading volume of XRP, the ninth most-traded crypto in June, plunged by 53% to $76.7bn. Still, the native cryptocurrency for products developed by Ripple Labs ranked as the seventh most-traded crypto in July.
The CoinMarketCap data showed that, compared to June, two new cryptos entered the most-traded list. With $92.8bn in monthly trading volume, PlayDapp ranked sixth on the list of most popular coins. Furthermore, statistics show the price of the token used in the PlayDapp Blockchain gaming ecosystem to purchase and sell NFT items within games, surged by 233% in this period, jumping from $0.1681 to $0.5608. WETH, or Wrapped Ethereum, ranked seventh on the list, with $61.7bn in 30-day purchase volume.
USD Coin and Ethereum Classic close the top ten list, with $55.8bn and $52.7bn in monthly trading volume, respectively.
Cash App’s Quarterly Bitcoin Revenue Triples Despite BTC Impairment Loss For Square
Jack Dorsey’s Square made more than 90 percent more gross profit than the same period last year, with $546 million coming from Cash App’s Bitcoin services.
Jack Dorsey’s Square has reported a 200 percent increase in Bitcoin revenue for the second quarter year-on-year (YoY).
The company announced the impressive earnings figures in its second-quarter shareholder letter on August 1. In the report, Square revealed its total gross profit grew 91 percent YoY to $1.14 billion.
Bitcoin services drove $2.72 billion in revenue for the app, with a gross profit of $55 million, respective increases of 210 percent and 223 percent respectively year-on-year. Cash App generated a gross profit of $546 million overall, up 94 percent YoY.
“Bitcoin revenue and gross profit benefited from year-over-year increases in the price of bitcoin and bitcoin activities, and growth in customer demand.”
However, compared to the first quarter of this year, Bitcoin revenue and gross profit decreased and is down 22.3 percent from 3.5 billion.
Square attributed the weaker performance to the more than 50 percent retracement suffered by the broader crypto markets during May and June.
Square also reported an impairment loss of $45 million on the Bitcoin it holds. As Tesla holds its Bitcoin (BTC) as an “intangible asset,” accounting rules require the firm to report an impairment loss when the asset’s price drops below its cost basis. Square is also not required to report increases in the value of its intangible asset holdings until the position is realized through a sale.
According to Bitcoin Treasuries, Square currently holds 8,027 BTC worth an estimated $320 million at the time of writing.
Square recently bought 3,318 BTC in February for $170 million, adding to its initial purchase of 4,709 BTC in October 2020.
On July 30, Cointelegraph reported that mobile software firm MicroStrategy pledged to buy more BTC despite an impairment loss of $425 million on its Bitcoin stash for Q2. Tesla also reported an impairment loss of $23 million for the quarter.
Yele Bademosi Steps Down as CEO of Bundle Africa
Yele Bademosi, the founder and CEO of the Nigeria-based crypto payments app Bundle Africa, is stepping down as the head of the company.
Bademosi announced his decision to step away from his current role in a blog post on Friday. He wrote that he intends to focus on driving digital currency adoption across Africa. He will be succeeded by Binance Africa director Emmanuel Babalola, at least on an interim basis.
“My focus for the next 12 to 18 months is really building infrastructure that can allow the inflow of capital to support innovation beyond the buying and selling of crypto,” Bademosi told said.
Bundle Africa launched last year with backing from global cryptocurrency exchange Binance, which contributed $450,000 in seed funding for the creation of the payments app. According to Bademosi, the app has about 350,000 users now. Bademosi, who grew up in Nigeria, was a former director of Binance Labs before creating Bundle.
Babalola is not only familiar with Africa’s crypto market. but he also knows how to navigate the global crypto sector comfortably, Bademosi said of his successor.
“[Babalola] is someone that I trust because we have the same mission and values, and I basically can’t imagine anybody else taking over,” Bademosi said.
Bademosi did not specify his future projects but said he has seen a lot of innovation in Africa’s crypto market in the last few months and there is a lot of room for innovation in social tokens, non-fungible tokens and peer-to-peer payments.
“I’m very excited,” Bademosi said.
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