BTC consolidation, ETH strength, and stablecoin resurgence
The crypto market is entering a cooling phase: Bitcoin is moving sideways while altcoins are broadly experiencing losses – a sign of a beginning market adjustment that is expected to last until next month. Investors remain cautious and reassess their positions as volatile US stocks and a rising gold price indicate growing risk aversion. Weak US economic data and Trump's calls for interest rate cuts are increasing the expectation of two rate cuts by the end of the year.
Ethereum shows relative strength against the overall market. The ETH/BTC rate is rising after Vitalik Buterin repurchased ETH, and institutional investors like BlackRock are reallocating capital from BTC to ETH – an indication of Ethereum's growing leadership role in the market.
In the stablecoin sector, USDC is generating optimism: With plans for an IPO at a valuation of 7 billion USD, stablecoin protocols like MKR, ENA, and LQTY are gaining significant momentum – a sign of the stronger intertwining of crypto and traditional finance.
The newly listed LA-Token (Lagrange) is making headlines: Extreme price fluctuations in futures contracts, especially on Gate.io, have led to significant price deviations and liquidations. While the focus on zero-knowledge cross-chain technology is increasing interest, it is also raising volatility.
On the Solana chain, meme coins are under pressure. The launchpad Pump.fun is apparently drawing liquidity to prepare for its own token project with a valuation of 4 billion USD – negatively impacting smaller SOL-based projects.
Conclusion: The market is consolidating, ETH is gaining institutional significance, stablecoins are coming into focus, while new projects and speculative assets remain associated with increased risk.
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