Ethereum Leads Crypto Market Rebound, Ether Market Cap Surges 49% in July: JPMorgan

The crypto market cap surged 14% in July to $3.7 trillion, driven by gains across tokens, DeFi, NFTs, and ETPs. Ether's market cap rose 49%, outpacing bitcoin's 8% gain, due to its dominant role in stablecoin issuance and growing institutional flows. Trading activity accelerated, with average daily volumes up 49%, and ether token volumes surged 60%. The passage of the GENIUS Act, crypto-linked IPOs, and traditional finance-DeFi partnerships are key drivers behind the rally.

The crypto market experienced a significant rebound in July, with total market capitalization climbing 14% to $3.7 trillion, according to a research report by Wall Street bank JPMorgan [1]. This rebound was driven by broad-based gains across tokens, decentralized finance (DeFi), non-fungible tokens (NFTs), and exchange-traded products (ETPs), with ether (ETH) stealing the spotlight. Ether's market cap surged 49%, far outpacing bitcoin's 8% gain, due to its dominant role in stablecoin issuance and growing institutional flows.

The report noted that U.S. spot ether ETPs saw a record $5.4 billion in net inflows, lifting total ETH ETP assets to $21.5 billion. Bitcoin (BTC) spot exchange-traded funds (ETFs) added $6 billion, bringing their combined assets under management to $152 billion. Trading activity accelerated, with average daily volumes across the ecosystem jumping 49% in July, and ether token volumes surging 60%, four times bitcoin’s 15% increase.

Key drivers behind the rally include the passage of the GENIUS Act, a growing roster of crypto-linked initial public offerings (IPOs), and deepening partnerships between traditional finance and decentralized finance. These factors, alongside a broader risk-on sentiment in global markets, suggest the recent gains in prices and volumes could prove sustainable.

In addition, the decentralized finance (DeFi) sector's total value locked (TVL) has climbed to $154.248 billion, with liquid staking giant Lido and lending platform Aave maintaining dominant positions [3]. The stablecoin market also saw significant growth, with total supply around $270 billion and up roughly 5% in the last month. Ethereum, Solana, and XRP are expected to be the biggest beneficiaries of the growth in stablecoin value, with Ethereum leading the way due to its large ecosystem and role in stablecoin issuance [2].

The crypto market's resilience and growth potential are evident in the recent performance of DeFi and stablecoins. As the market continues to evolve, investors should keep an eye on these key trends and developments.

References:
[1] https://finance.yahoo.com/news/ether-led-rally-pushed-crypto-134027821.html
[2] https://finance.yahoo.com/news/3-cryptos-could-soar-stablecoin-110000666.html
[3] https://api.news.bitcoin.com/wp-json/bcn/v1/post?slug=value-locked-in-defi-reaches-154b-despite-3-dip