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What Happened This Summer?

Summer is when most markets slow down and many of us step away to recharge. But in crypto and Web3, the pace never really stops. If you took a break, here’s a recap of the key developments from our UDA Weekly Briefs this summer:

Market Highlights

🔹 Bitcoin (BTC)

-Swung between $124,000 highs and $112,000 lows earlier this summer, facing sharp corrections.

-Despite ETF outflows and occasional sell pressure (including a historic 80,000 BTC transfer from a Satoshi-era wallet), the market showed resilience.

-In the final week of August, BTC fell -6.57% to close at $107,866, with market cap at ~$2.14T. Analysts flagged $100K as a key support zone.

-Institutional flows remained mixed: U.S. spot Bitcoin ETFs added $440.8M while August still closed with $301M in outflows.

🔹 Ethereum (ETH)

-Stole the show earlier this summer with rallies to all-time highs above $4,900 and surges nearing $4,000.

-ETF inflows set new records — BlackRock’s ETHA led multi-billion allocations, even outpacing BTC inflows in some weeks.

-By September 1, ETH closed at $4,398 (-4.6%) after a volatile week, with ~$530B market cap.

-On-chain activity hit its highest since mid-2021, with August volumes surpassing $320B. Analysts point to $4,000 support, with potential to retest $5,000 if momentum holds.

🔹 Broader Market

-Total crypto market cap at $3.71T, BTC dominance at 58.23%.

-Weekly inflows hit $2.48B, driven not only by BTC and ETH ETFs but also Solana ($177M) and XRP ($134M), fueled by U.S. ETF optimism.

-Stablecoin supply reached a record ~$283B, cementing their role as the liquidity backbone of crypto markets.

Top Developments You Should Know

🌍 Stablecoins Gain Global Traction

-MetaMask unveiled mUSD, a wallet-native stablecoin with Stripe integration.

-Tether brought on a former White House crypto advisor to drive U.S. strategy and just announced USDT rollout on Bitcoin via RGB, unlocking new DeFi possibilities on the Lightning Network.

-Anchorage & Ethena Labs launched USDtb, the first GENIUS-compliant U.S. stablecoin, federally regulated with full 1:1 backing.

-China is weighing offshore RMB stablecoins via Hong Kong to power global trade.

🏛 Regulation & Policy Moves

-The SEC launched Project Crypto to modernize securities rules for digital assets.

-In-kind ETF creations aligned Bitcoin and Ethereum ETFs more closely with traditional markets.

-A Trump executive order paved the way for crypto allocations in 401(k) retirement plans — opening doors to a $12.5T market.

-The CFTC expanded its FBOT framework, opening a pathway for Americans to legally trade on offshore crypto exchanges, balancing innovation with investor protection.

-The U.S. Department of Commerce tapped Chainlink and Pyth to publish GDP and other macroeconomic data directly on-chain, embedding decentralized infrastructure into government data flows.

🏦 Institutions Embrace Tokenization

-DBS Bank issued tokenized structured notes on Ethereum.

-BNY Mellon & Goldman Sachs launched the first tokenized U.S. money market fund, reducing settlement from days to near-instant.

-Binance & BBVA partnered on institutional custody.

-JPMorgan & Coinbase rolled out a roadmap to connect Chase accounts and credit cards directly to crypto.

-Aave Labs launched Horizon, enabling institutional stablecoin borrowing against tokenized U.S. Treasurys and funds — bridging DeFi with traditional finance.

💳 Payments & Adoption Expanding

-PayPal introduced “Pay with Crypto,” enabling U.S. merchants to accept 100+ tokens with instant stablecoin conversion.

-Ethena’s USDe surged 75% in circulation, becoming the third-largest stablecoin.

-Institutional-grade rails are positioning crypto as a mainstream settlement layer.

-Circle taps Mastercard and Finastra to push USDC into global payments

Why This Matters?

This summer confirmed two clear trends:

Stablecoins and tokenization are going mainstream — governments, banks, and fintech leaders are not just experimenting, they’re building.

Ethereum is rising as the institutional favorite, with massive inflows and real-world pilots, while Bitcoin remains the liquidity and confidence anchor despite recent volatility.

As we step into autumn, the integration between digital assets and traditional finance is accelerating — with government adoption, new institutional platforms, and ETF inflows shaping what could be a transformative end to the year.

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