The Ethereum network is seeing bullish signals, with the network recording a year high of 1.8 million transactions this month. More Ether is being locked into the network as American regulators issue guidance and definitions for staking.
Bitcoin (BTC) is in a slump, meanwhile, with the currency trading down over 5% over the last 30 days. A $2.7-billion whale trade sparked a flash crash on Aug. 24.
Bitcoin treasury countries continue to issue debt to fund their major Bitcoin purchases. In August, Strategy and Metaplanet picked up 5,370 BTC between the two of them.
In the US, state regulators are working with senior citizen advocacy groups to restrict crypto ATMs, which are often used to commit fraud. Two states have put forward legislation in the last month.
Here’s August by the numbers.
Ethereum transactions hit year high in August with 36 million ETH staked
Transactions on the Ethereum network hit a one-year high on Aug. 5 when the blockchain processed more than 1.8 million transactions.
The annual record comes as the Ethereum network sets new records for Ether (ETH) staked; nearly 30% of the Ether supply is now locked. This large number of staked Ether indicates that investors are hunkering down. They’d rather stake their investments on exchanges and receive rewards than sell.
Related: Spot Ether ETF staking could ‘dramatically reshape the market’
The US Securities and Exchange Commission released a statement, defining and explaining its views on liquid staking. Many took this to mean that an Ether exchange-traded fund (ETF) with staking could be incoming.
Whale sells $2.7 billion in Bitcoin, sparks meltdown
On Aug. 24, a Bitcoin whale sold 24,000 BTC worth around $2.7 billion, causing a flash crash in Bitcoin markets. According to QCP, the crash liquidated some $500 million in leveraged positions over the course of minutes.
Before the sale, Bitcoin was trading in a narrow range, while Ether set new record highs. Bitcoin dominance slipped in August from 60% to 57%. Bitcoin dominance is still well above where it was in the 2021 altcoin season, but if Ether ETFs with staking get approval, it could feed the narrative that ETH will outperform soon, QCP said.
13 US states now have limits on Bitcoin ATMs
The US states of Rhode Island and Wisconsin introduced legislation regulating crypto kiosks in August, bringing the total number of states with such rules up to 13. Some municipalities, like Stillwater, Minnesota and Spokane, Washington have gone so far as to ban them outright.
Many ATM scams target senior citizens, who are unfamiliar with new technologies like Bitcoin and crypto. Many of the state laws were written with the support and guidance of the American Association of Retired Persons, an interest group focusing on issues affecting people age 50 and over.
Metaplanet acquires 1,859 BTC; Strategy nabs 3,511 BTC
The trendsetting firm for Bitcoin treasuries, Strategy, bought up 3,511 BTC in August. With Bitcoin at an average price of $116,000 in August, that puts Strategy’s total Bitcoin purchase for the month around $407.2 million.
Japanese investment company Metaplanet also added more Bitcoin to its coffers, scooping up some 1,859 BTC. At the aforementioned average price, its total Bitcoin purchase for August is worth just over $215.6 million.
Hackers net $53 million from DeFi exploits in August
Data from DefiLlama shows that cybercriminals stole $53 million from decentralized finance (DeFi) exploits in August, with the $48-million hack of Turkish cryptocurrency exchange BtcTurk making up the lion’s share.
The crypto industry has been making a concerted effort to tackle hacks, which are becoming more common. Some in the industry aren’t so optimistic. Ronghui Gu, professor of computer science at Columbia University and co-founder of blockchain security platform CertiK, said during a Cointelegraph Chain Reaction daily live X Spaces show, “It’s an endless war” between hackers and security experts.
Bitcoin grows to 1.7% of global money supply
An August report from Bitcoin financial services company River found that Bitcoin now accounts for 1.7% of the global money supply.
The company reached this conclusion by weighing Bitcoin’s market capitalization against a $112.9-trillion basket of fiat currencies and $25.1 trillion in hard money, not including silver, platinum and exotic metals.
River’s study assumed that Bitcoin has a market capitalization of $2.4 trillion. At publishing time, BTC’s market cap is $2.21 trillion, putting Bitcoin’s share of global money closer to 1.6%.
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