After months of price declines across cryptoassets, July 2022 brought signs of recovery. All sectors saw positive monthly returns — gaining a minimum of 8% — led by DeFi (52%) and metaverse (35%). Prices of BTC (19%) and ETH (59%) increased after three months of negative returns.
Uncertainty lingered in July following several months of price declines and consolidation. The crypto space continued to experience headwinds as Three Arrows Capital, Celsius Network and Voyager Digital filed for bankruptcy.
Is the worst of the storm behind us? In Kraken Intelligence’s latest Market Outlook Report, Weathering the Storm, the team recaps July market action and looks ahead.
Green candles pile up
In addition to ETH’s big move up, BTC and memecoins also rallied, gaining 19% and 8%, respectively.
Following the overall crypto market trend, NFT market activity started to recover in July. Average daily users (5.3%) and average daily transactions (12.9%) increased MoM. NFT average daily volume saw a decreased 26.2%, an improvement from June 2022’s -68.7% decline.
In July, BTC remained positively correlated with both the Nasdaq (0.71) and the S&P 500 (0.81) equity indices.
Minimal whale movement
Whale activity for both BTC and ETH was relatively quiet over the month. Overall, Bitcoin saw a slight decrease in total number of whales (wallets with more than ₿1,000) and how much BTC they held. Ethereum remained largely unchanged in the number of whales (wallets with more than Ξ10,000) and the amount of ETH they held.
Despite persisting macroeconomic uncertainty and headwinds faced across the industry, contagion fears appear to have peaked and investor sentiment is starting to recover, as evidenced by the broad-based positive performance of various cryptoassets in July.
Want to learn more about what went down and what’s ahead? Read the Kraken Intelligence report, Weathering the Storm, to understand what’s moving the crypto market.
You must be logged in to post a comment.