In the middle of summer, the crypto market heated up with a blazing rally from Solana and XRP. In July, these digital assets soared, with Solana up by 30.5% and XRP by 27.6%. As a result, the overall cryptocurrency market capitalization jumped by 6.1%.
The rest of the digital asset market also showed positive shifts. Thus, the total value locked (TVL) in the DeFi sector rose by 3.5%, and Binance maintained its lead in trading volumes among centralized exchanges. However, NFT sales dropped by 7.14%.
By the end of July, Solana's (SOL) value increased by 30.5%, and Ripple's XRP saw a 27.6% gain, leaving other altcoins in the dust. The overall crypto market cap for the month jumped by 6.1%. Experts attribute this growth to positive news, including the SEC's approval of an S-1 filing for nine spot Ethereum ETFs, which began trading on July 23. One more reason is the market's hopes that Donald Trump, if re-elected as US President, might create a strategic Bitcoin reserve. Trump had floated this idea earlier at the Bitcoin 2024 conference.
Analysts suggest that Solana's stellar performance was driven by a 42.2% increase in trading volume on decentralized exchanges (DEX), reaching an impressive $54.6 billion, thanks largely to meme coin trading. The number of active addresses on the network hit a record 1.7 million on average, while daily transaction volume advanced by 18.2% to 1.3 million.
“Positive sentiment around the ecosystem was bolstered by several developments in the decentralized finance (DeFi) market, including the introduction of Jito restaking and the announcement of Drift prediction markets," Binance experts pointed out.
XRP also enjoyed a strong rally, sparked by the launch of CME and CF Benchmarks indices and reference rates for the asset. This move boosted investor confidence.
Meanwhile, Tron (TRX) continued its positive trend, gaining 9.8% in July and making it into the top 10 cryptocurrencies by market capitalization. The cherry on top was Tron founder Justin Sun’s announcement about developing a gasless stablecoin, highlighting the currency's promising future.
However, the second month of summer was not as kind to all digital assets. For example, Ethereum dipped by 1.6%. Since the start of trading, Ethereum-based ETFs saw a massive capital outflow of $484 million, though the situation later stabilized.
The TON coin experienced a 12.2% drop, a disappointing turn after strong March results. "Its ecosystem continued to grow with the success of the Telegram game Hamster Kombat and other initiatives," Binance experts noted.
Additionally, in July, the total value locked (TVL) in the DeFi sector increased by 3.5%. This reflects the upward trend in the crypto market, Binance concluded.
