August 2024 was a pivotal month for the cryptocurrency market, with events challenging investors and lending platforms. Starting on 27 August, there was a massive wave of liquidations of long positions, totalling over $273 million in a single day. This event made up 41% of the week’s total liquidations, which reached almost $658 million. Binance was the main player, accounting for 42% of the total liquidations.
The collapse in the prices of Bitcoin and Ethereum, both down 9% week-on-week, further aggravated the situation, while altcoins suffered even greater losses, with weekly declines of 9% for Layer 1s, 10.3% for DeFi and 10.4% for memecoins. Artificial intelligence-related tokens were among the hardest hit, plummeting 17.6% after the release of Nvidia’s earnings report.
In addition to liquidations in long positions, on-chain lending markets were also severely affected. In August, liquidations in the lending markets on Ethereum reached USD 436 million, with Aave accounting for 66% of this total. This event is the second largest in history, surpassed only by that of May 2021.
Despite this, August marked the second highest supported trade volume in USD in 2024, reaching USD 193bn. Crypto.com surpassed Coinbase, taking 49% of the market and proving that the appetite for cryptocurrencies is far from exhausted.
With the US presidential elections approaching, it is possible that interest in the cryptocurrency market will continue to grow and all radars are pointed towards this big event, comparing the price effect of Bitcoin to the previous US elections.
The bull run hasn’t even started, and this election we have interest rate cuts pic.twitter.com/hzF3cjc917
– Crypto Tea (@CryptoTea_) September 3, 2024
