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HOT 2022 After September and August of 2019, overall crypto-assets also trended negatively. By market cap, all sectors posted negative returns for the month, ranging from -14% to -1%.

Following the overall crypto market trend, NFT market activity also slowed down in August. Average daily users and average daily transaction volume decreased by -5.7% and -3.1%, respectively, month-on-month. NFT trading volume also declined with the average daily trading volume falling by -26.3%. Returns on DeFi assets have been mixed, ranging from -21% to +27%.

In the next few weeks? Check out our latest Market Review and Outlook reports as the team explores what happened in September and what’s ahead.

Merge

As Ethereum successfully transitions from proof-of-stake to September, mergers come into focus – Proof-of-Work (PoW) to Proof-of-Stake (PoS). On September 15, validators completely replaced ETH miners, and the annualized volatility spiked to 94% two days later.

ETH was higher than BTC in September. The amount of ETH held by whales (those with more than Ξ10,000) started the month at Ξ81.2M and then ended the month at Ξ81.5M. On September 14, the day before the merger, the amount of ETH held by whales dropped to 80.9M. The number of ETH whales started at 1,314 and ended at 1,293, dropping throughout the month.

TradFi continues to enter the field

While September has historically been a slower month, the bigger TradFi players were active this year. BlackRock hit the headlines with CF Benchmarks, the leading crypto index provider owned by Kraken. BlackRock, the world’s largest asset manager, will use CF’s bitcoin index pricing product for its initial cryptocurrency offering.

At the same time, the blockchain oracle network Chainlink also cooperated with CF Benchmarks to launch the CF Bitcoin Interest Rate Curve (CF BIRC). ), used to track bitcoin lending. Chainlink has also partnered with interbank messaging system SWIFT in an initial proof-of-concept on a cross-chain interoperability protocol.

This month, the BTC correlation of risky assets and risky assets started to rise. BTC maintains a positive correlation with the Nasdaq and S&P 500 stock indexes, as well as U.S. Treasuries and gold.

A New Era

The biggest event in the crypto space in September was a merger that ushered in a new era for one of the industry’s largest blockchain networks, Ethereum.

While the overall space trended negatively in September, it was still slightly better than August 2022. Despite the bear market and broader macroeconomic uncertainty, the industry has drawn a lot of interest from traditional institutions — a reason for long-term optimism in the crypto space.

Want to learn more about failure and the future? Read the Kraken Intelligence report, Silver Lining, to understand what is driving the crypto market.


These materials are for general informational purposes only and are not investment advice or advice to buy, sell or hold any crypto asset or engage in any particular trading strategy advice or solicitation. Some crypto products and markets are not regulated and you may not be covered by government compensation and/or regulatory protection programs. The unpredictability of the crypto asset market can lead to the loss of funds. Any returns and/or any increase in the value of your crypto assets may be subject to tax and you should seek independent advice on your tax situation.

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