Ether's Surge Drives Crypto Market Capitalization to $3.7 Trillion in July, Says JPMorgan

Key Highlights:

The cryptocurrency market capitalization increased by 14% in July, reaching $3.7 trillion, with ether experiencing a significant 49% gain, significantly outpacing bitcoin’s 8% rise.
Average daily trading volumes surged approximately 50% last month, with ether volumes rising by 60%, reflecting a robust performance in both decentralized finance (DeFi) and non-fungible token (NFT) activities.
JPMorgan attributes the crypto rally to several factors, including the GENIUS Act, a burgeoning pipeline for crypto IPOs, and heightened collaborations between traditional finance and decentralized finance sectors.

Overview

The crypto ecosystem demonstrated a notable rebound in July, highlighted by a substantial 14% surge in total market capitalization from June’s figures to a remarkable $3.7 trillion, as reported by JPMorgan. Alongside this, daily average market capitalization rose by 12%, fueled by widespread gains across various tokens, decentralized finance, non-fungible tokens, and exchange-traded products. However, ether captured the spotlight with its exponential performance.

In more detail, ether’s market capitalization spiked by 49% over the month, a significant achievement attributed in part to the Ethereum blockchain’s leading role in stablecoin creation and increasing institutional investments in ether-based products. Notably, U.S. spot ether exchange-traded products (ETPs) achieved record net inflows of $5.4 billion, lifting total ether ETP assets to $21.5 billion. In comparison, bitcoin-related ETFs gained $6 billion, amplifying total assets under management to $152 billion.

The increase in trading activity is also telling; average daily trading volumes soared by 49% in July, reflecting a robust interest in the space. Token volumes for ether saw a remarkable 60% rise, outstripping bitcoin’s modest 15% increase, with profound growth recorded in the DeFi and NFT sectors.

JPMorgan pointed towards recently enacted legislation, a thriving list of forthcoming crypto IPOs, and solidified partnerships between traditional finance and the decentralized sector as primary facilitators of the recent market behavior. The bank concluded that these developments, paired with a general risk appetite blooming across global markets, gave reason to believe that this rally in prices and trading volumes could maintain its momentum.