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After a back-and-forth month of July, the crypto market has sprung to life in a not-so-desirable fashion in August. Major cryptocurrencies, most notably Bitcoin and Ethereum, plunged closer to their support levels this month, with the broader market following down the same path. But what happened? - Further interest rate hikes from the Federal Reserve, with a more hawkish outlook long-term, suggested that the last 0.25 basis point hike might not be the final interest rate increase in the U.S, with the Bank of England also raising rates.
This propped up the yield for government bonds, while the stock and crypto markets slumped and a sell-off ensued. However, the market was quick to bounce back after Bitcoin came dangerously close to breaking through its $25,000 support level.
Top 5 Gainers
August has proven to be a very difficult month for the global crypto market, with a vast majority of the top 100 currencies by market capitalization slumping throughout the period. Only a handful of cryptocurrencies managed to end the month on a positive note, with the likes of RUNE and TON being the clear highlights of the past 30-day period on the market. The Crypto Fear and Greed Index currently stands at a neutral 52/100, signaling indecisiveness on the market.
THORChain (RUNE) +68%
Starting off this list is THORChain, the cross-chain swap protocol, has exploded during the month of August - gaining as much as 68% over the period. While this gain does not offset the annual losses incurred by the coin - 19.8% decline over the past 12 months, RUNE has nonetheless managed to recoup some of its decline over the month, giving investors some much-needed breathing room.
While the recovery has been robust, RUNE investors will be eyeing the $2.22 resistance level come September – hoping to make a breakthrough. Overall, in a month full of crypto duds, RUNE has presented itself as a safe haven for short-term traders on the market.
Toncoin (TON) +43.1%
Another surprise star of the show, Toncoin managed to return a nice and healthy 43% during the month of August, which comes off the back of a slum in July. TON has bounced back massively in August and broke above the $1.70 resistance level towards the end of the month.
TON is one of the rare examples of a cryptocurrency that has remained in the green since the start of the year - returning just under 13% over the past year. Toncoin investors will be hoping to break above the $2 mark before the end of the year, whether this will be the case remains to be seen.
dYdX (DYDX) +5.9%
DYDX, the decentralized trading platform, has been one of the top performers on the crypto market this year. Over the past 12 months, the coin has gained 38.5%, making it one of the most lucrative crypto investments of the year so far.
Over the past 30-day period, DYDX has managed to gain a respectable 5.9%, as the broader crypto market slumped heavily. The price broke firmly above the $2 level, and investors should be hopeful for a breakout above $2.50 in the near-term future. DYDX operates on the Ethereum network and has been the leading DeFi coin over the past month.
Astar (ASTR) +4.40%
Astar, the multichain smart contract network, has been one of the shining stars on the crypto market over the past year. ASTR has gained over 54.4% throughout this period and the month of August saw the coin jump by 4.40%, which would be modest for most other months, but the bearish run in August places Astar as one of the top gainers of the month.
Astar’s price failed to break above the $0.07 mark and continued to slump down to $0.055, which would have amounted to a double-digit monthly return.
OKB (OKB) +3.5%
OKB, the native utility token of the OKEx trading platform, has delivered amazing returns over the past 12 months – gaining over 180% during the period.
The month of August was considerably tamer in that regard, which saw OKB gain just 3.5% over the past 30 days. OKB has failed to break above the $50 mark and investors will be hopeful of an eventual breakthrough come September/October.
Top 5 Losers
August has been rife with crypto losers. As the market sentiment around interest rates was dissected by the market, the stock and crypto markets took a hit, with the crypto market following a slump in the price of Bitcoin, which lost roughly 6% of its market value over the month, which would have been heavier, but BTC bounced back after coming dangerously close to breaking the $25,000 support level.
Uniswap (UNI) -29.01%
Uniswap, the automated liquidity protocol and decentralized exchange, has been hit hard during the month of August – losing 29% of its market value over the past 30 days.
The annual performance of UNI has not been much better, either – with the cryptocurrency losing roughly 27% of its market value over the past 12 months. While the short-term prospects seem troublesome, at $4.5 Uniswap might be a fair deal for some crypto investors, hoping to bounce back after what has been a rough month for the broader cryptocurrency market.
Litecoin (LTC) -25.18%
Litecoin’s monthly and annual performance tell different tales for investors. While the coin lost over 25% over the past 30-day period, the 12-month performance shows a 25% gain, which shows a conflicting period in the price history of LTC.
Falling firmly below the $75 mark, Litecoin has been one of the worst-performing “Top-25” cryptocurrencies in August. Investors will be hopeful of a gradual turnaround starting September. The $60 support level has remained strong for Litecoin, which could be a sign for new investors on the hunt to buy Litecoin as their next long-term investment.
XRP (XRP) -24.78%
Coming off the back of a major victory for the global crypto market, Ripple Labs has won the SEC case against XRP, which seeked to classify XRP as a cryptocurrency for tax reporting purposes.
However, after the astonishing gains witnessed in July, XRP has slumped once again - this time falling prey to a dovish macroeconomic environment. Over the past month, XRP’s price has slumped by over 24%, which comes at a stark contrast to the annual gains of 58%.
During its August fall, the $0.45 support level managed to withstand the selling pressure, which can signal investors that the coin might be ready for a gradual turnaround.
Chainlink (LINK) -21.77%
Chainlink, the decentralized oracle network, has endured a rough month in August - losing over 21% of its market value over the past 30-day period.
The annual performance of Chainlink hasn’t been very confidence-inspiring either, with the crypto dropping by over 11% over the year. Chainlink also broke through the $6 level, but quickly managed to bounce back. Investors will be eyeing the coin’s performance closely heading into September, as a turnaround on the crypto market could also help LINK recoup some of its losses.
Avalanche (AVAX) -17.8%
The past 12 months have seen things go from bad to worse for Avalanche hodlers. The coin has lost over 47% of its market value over the period, while losing roughly 18% in August alone. The price also broke through the $10 level for a brief period, before bouncing back closer to $11.
The short-term prospects for Avalanche could quickly turn bullish if the broader market, as well as Bitcoin, makes a turn towards a bullish trend, which seem unlikely due to tense macroeconomic conditions, so investors could be eyeing a firm break lower than the $10 support level in the future.
Final Thoughts
August has largely been a month to forget for crypto investors, as the broad market slumped alongside Bitcoin, which lost around 6% and nearly fell through the $25,000 support level during the month.
Long-term crypto bulls might need to rebalance their portfolios in the coming months, as the Federal Reserve seems adamant to raise interest rates for as long as necessary to curb inflation in the United States.
As bond yields become more and more attractive, money flowing out of the stock and crypto markets will be headed toward the fixed-income securities market, which makes it difficult for the crypto market to make a bullish turn and recoup some of the losses incurred by long-term bulls.