MakerDAO‘s MKR outpaced other constituents of the Coindesk Market Index (CMI) in July, marking an incredible 47% advancement. Giving MKR a close competition was Ripple Labs’ XRP with a growth of 46.6%. This progress was majorly attributable to a U.S. judge’s ruling stating that the sale of XRP tokens on exchanges didn’t classify as investment contracts.
Contrastingly, the two highest valued cryptocurrencies, bitcoin and ether, clearly seemed out of steam, each shedding 4% during July. This surprising move invited speculation towards the underlying reasons for this drop. Given the usual volatility of cryptocurrencies, such movements, though mysterious, are not completely unusual.
A glimpse into the performance of MKR revealed that its significant leap took place on July 21 post the initiation of a token buyback program. Ripple’s XRP had its moment when it soared to as high as 93.8 cents on July 13 after the District Court for the Southern District of New York exempted the sale of XRP on digital asset exchanges from being investment contracts. Despite a pullback to the $0.70 level later in the month, XRP managed a rewarding return for July.
Stellar’s XLM found itself in the limelight as well in July with a climb of 35%. The sudden upward leap was credited to a research report issued by the Stellar Foundation detailing its off-ramps.
On the downside, not all cryptocurrencies savoured gains. Bitcoin cash (BCH) and litecoin (LTC) had to bear the brunt, losing 20% and 18%, respectively. The decline in LTC occurred right before the cryptocurrency’s third halving event – a pre-scheduled 50% reduction in the release pace of the cryptocurrency.
As we step into August, traditionally known as a slow market month, a note of optimism by FundStrat suggested otherwise. Citing August as a seasonal risk may actually lessen the possibility of an unstable market. One potential catalyst could be the SEC’s decision on bitcoin ETF applications. Since 2022, bitcoin and ether have dipped 14% and 8% respectively. However, the consistency in upcoming cryptos definitely shows a hint of a more diverse crypto market in the future.
In reconciliation, analysing the month’s gains and losses in cryptocurrency exposes both unpredictable undulations and promising tools for appreciating assets. It remains crucial for investors to stay vigilant and hold their faith in the potential of these dynamic digital currencies.
Source: Coindesk
