Compass Investments

August turned out to be the best month for cryptocurrencies, but here are the signs of a bearish trend that you most likely didnt notice!

August was the most successful month for crypto this year. However, as is often the case, all that glitters is not gold.

Much of it simply isnt visible on the price chart.

Bitcoin ended August with a 24.5% gain! This is one of the strongest monthly performances of the year.

But according to CryptoRank, the total market capitalization of the top 100 altcoins grew even faster than Bitcoinsby 26.5% . Moreover, this growth wasnt driven solely by a few large coins.

On average, altcoins rose in price by 24.5% . Even excluding outliers, these tokens still showed solid growth of 17.1% . This time, small and mid-cap coins didnt just follow Bitcoins lead. LINE_BREAK Last month, the DeFi lending market also experienced a boom.

The volume of active loans across major protocols rose from $20.1 billion in June to $26.1 billion in August. Thats a 30% increase in just two months!

Aave [AAVE] alone accounted for more than half of that amount ($12.5 billion). It is followed by Morpho [MORPHO] and Spark [SPK], which hold smaller shares.

Simply put, money is at work. When activity increases, prices rise not just because of hype.

Bitcoin jumped from about $63,000 to $81,500 in just two weeks. Naturally, many long-term holders saw this as a signal to exit the market.

Profit-taking intensified sharply twice in a single week, leading to one of the biggest sell-offs of the entire year, not counting the January crash. And since then, this trend has continued almost unabated.

Meanwhile, demand in the U.S. turned positive for a few days at the end of the month, but then vanished as if it had never existed.

Around the same time, funding rates reached their highest level of the year. This indicated that traders were actively using leverage.”,”detected_source_language”:”RU