Good morning, Asia. Here’s what makes news in the markets:
Welcome to Asia Morning Briefing, a daily overview of top stories during the US HOURS and an overview of market movements and analysis. For a detailed overview of US markets, see Coindesk’s Crypto Doybook Americas.
As Asia begins its trading day, ETH is over $ 4600, an increase of 10% over the last 24 hours as the possibility of a focus in September is working through the market. Some dealers are likely to see Ethh quickly challenging its highest height of $ 4876 set in 2021.
The polymarket -betors go one step further; They believe that $ 5000 is possible by the end of August, and they also give a 28% chance of the asset’s price that crosses $ 5800 before the month ends.
The wave has helped to pull Bitcoin dominance down from 65% to 59% when dealers rotate to Altcoins.
In a recent report, analysts at Glassnode wrote that ETH is now approaching the +1 standard deviation “Active Realized Price” band about $ 4.7,000, a level that has triggered strong sales in previous bikes.
But behind the scenes there is a growing liquidity wash that may weigh heavily on ETH’s next growth phase.
A new cryptoquant report shows that Ethereum is increasingly serving as a liquidity source for Tron’s USDT ecosystem.
On August 9, Kryptoquant Data shows that a record $ 7.7 million worth of ETH was surpassed to throne and converted to USDT, while June 25 saw $ 19 million worth of the ERC20 tokens, mostly USDC, made the same step.
Inflow from Tron Back to Ethereum remains minimal, highlighting a one-way value of value that supports Tron’s StableCoin economy, but siphon’s liquidity from Ethereum’s original defi activity.
Over time, sustained outflows can weigh on demand for demand and reduce Ethereum’s ongoing fee revenue and insert rewards as several of the StableCoin economy is clearing elsewhere.
If this trend persists, Ethereum’s role may increasingly look like a wholesale financing layer that drives liquidity to rival network rather than capturing the transaction activity itself.
This dynamic may not derive the current demonstration in the short term, but it may limit the sustainability of higher valuations whose capital flight against faster, cheaper settlement layers as throne continues uncontrolled.
But so far, the market has the eyes of $ 5K ETH.
Market Movers
BTC: Bitcoin owns $ 119,943 (+0.4%) With Bullish Momentum intact, although resistance clings to $ 123K in the middle of ETF flow and ETH’s rally, according to Coindesk’s Market Insights Bot.
ETH: ETH trades over $ 4600 as the possibility of a 50 bps rate cut that is large.
Gold: Gold-edged up to about $ 3,350 as US inflation data reinforced bold rate cuts betting while facilitating US-China merchant tensions limited gains.
S&P 500: S&P 500 and NASDAQ hit record heights when CPI data met expectations in July, increasing the bets at a September -fed rate and lifting tech shares.
Nikkei 225: The Markets in the Asia Stock Ocean opened higher Wednesday, with Japan’s Nikkei 225 up 1% after a record close Tuesday.
Other places in crypto
- Polymarket Active Traders jumps 18%as six-month slump ends but the average trading size decreases (The block)
- Top Crypto VC Matt Huang to lead Stripe Blockchain Tempo as CEO, Staying at Paradigm (Assets)
- Who is Patrick Witt, President Trump’s next senior adviser for crypto? (Coindesk)
