Crypto Market Declines 3.6% Ahead of U.S. Inflation Data Release
The crypto market declined today due to anticipation of the U.S. core PCE inflation data, which may impact the Federal Reserve's interest-rate strategy. The CoinDesk 20 Index dropped 3.6%, with nearly all components experiencing losses.
Analysts from Bitunix indicated that a higher-than-expected inflation figure could lead the Fed to adopt a cautious stance following the anticipated rate cut in September. Key observations for Bitcoin include monitoring whether $114.5K becomes support or if the $107.6K level confirms market resilience.
Derivatives Positioning
- Open interest in futures for the top 20 coins, excluding SOL, decreased, signaling capital outflows.
- SOL's open interest reached a record high of 63.84 million, with its price rising to $217.
- Funding rates for ether, tron, and BNB turned slightly negative, indicating bearish sentiment, while other major tokens showed neutral rates.
- Open interest in CME bitcoin futures fell to 135.72K BTC, the lowest since April; ether's OI remained high at around 2.10 million ETH.
- Downside bias in BTC options increased, with puts trading at a premium over calls. ETH options reflected similar trends.
- Block flows on Paradigm included call selling and put rolling strategies for BTC and ETH, with demand for December expiry call spreads noted by Wintermute.
Token Talk
- Solana (SOL) reported a 44% decline in second-quarter application revenue, dropping to $576.4 million from $1 billion despite DeFi growth.
- Pump.fun led with $156.9 million in revenue but faced a 44% decrease as memecoin excitement waned.
- Axiom surged 641% to $126.6 million, demonstrating protocol-specific growth amidst general ecosystem weakness.
- Despite revenue declines, Solana's DeFi total value locked (TVL) grew 30% to $8.6 billion, surpassing $11 billion subsequently.
- Kamino Finance contributed significantly to TVL growth, increasing by 34% to $2.1 billion after launching Kamino Lend V2, attracting substantial deposits and loans.
- Raydium's TVL rose 54% to $1.8 billion, reclaiming second place from Jupiter.
- Average daily spot DEX volume decreased by 45% to $2.5 billion, indicating reduced trading activity post-memecoin surge.