Reviewing the Cryptocurrency Market in August 2018
Published on September 10, 2018
Over the last 6 months, we鈥檝e seen the cryptocurrency market take a rollercoaster ride to tremendous highs and detrimental lows. Unfortunately, the month of August had the majority of the market experiencing a dip in value from the 1st to the 31st.
At the start of the month, coming off of the back of July鈥檚 end of the month slight uptick in value, the market was looking steady. But it soon began to take a slow decline with coins seeing a significant value decrease every day.
The cryptocurrency world was thrown into a panic halfway through the month when Ethereum, a coin that was a favorite to soon overtake Bitcoin in terms of popularity and market cap, dropped under $300.
We鈥檒l cover that story a little bit later on in this monthly update, but Ethereum鈥檚 value drop did have a visible impact on a number of other top coins鈥?performances.
At the end of the month, the little bit of positive momentum generated at the end of July and beginning of August was all but forgotten when most of the top market cap coins ended on a low note.
We鈥檒l break down each coin鈥檚 highs and lows during the month of August as well as provide a monthly percentage change with some general information about that coin. This is a useful tool for anyone that is currently involved in the cryptocurrency market or is thinking about getting involved in it.
There were a number of top cryptocurrency stories in August, with Ethereum鈥檚 price drop being one of them, and we鈥檝e rounded them up and broken them down for your convenience.
We think that staying informed not only about the daily market performance but also the top news stories is infinitely important for any current or potential crypto user.
Our August cryptocurrency market update will provide you with the recaps that are invaluable going into the month of September. It鈥檚 important to remember, though, that the cryptocurrency market is volatile, meaning that values can skyrocket or plummet at the drop of a hat without warning.
This also means that data from past months or even past days is not necessarily a reliable way to predict future data. We鈥檝e provided this information in the hopes that you鈥檒l use it alongside your own research and data for your selected coin or coins.
Market capitalization is a good way to determine the most popular coins and coins that are growing in popularity at any given time. Over the last few months, this list hasn鈥檛 seen any drastic changes, but the #10 slot has been the most dynamic.
We鈥檝e created this list of the top 10 market cap coins as of August 31st, but each coin also has a separate ranking showing its performance over the course of the month.
Under each coin, we鈥檝e also included a little bit of information about what the coin is and how it did this month.
The world hasn鈥檛 been the same since 2009 when Bitcoin and the blockchain were silently introduced to the world by an anonymous person or group named Satoshi Nakamoto.
It was developed to make peer-to-peer monetary transactions easier because it bypasses the middle-man financial organizations that often facilitate those transactions. This made things not only faster but easier for those that invested.
In 2016, Bitcoin experienced a monumental spike in popularity and investors, which then led to the current crypto-craze of today.
Bitcoin will probably, at least for the foreseeable future, remain at the top spot in terms of market capitalization.
In August, BTC was ranked number 2 of 10 in terms of performance over the month. On August 1st at market close, Bitcoin finished the day at $7,624.91 per coin. On the last of the month, the price per coin was at $7,037.58. So, from the first to the last of the month, Bitcoin dropped in value by $587.33, or 7.70%.
Ethereum had its 5th birthday this month, being introduced in August 2013 as an improvement upon the blockchain and Bitcoin model. Unlike Bitcoin, Ethereum had pre-mined 12 million ETH to make the introduction of the coin easier.
If you鈥檇 like to learn more cryptocurrency mining, check out our guide to mining cryptocurrency.
Ethereum is typically found in the number 2 spot in terms of market capitalization, as it was in the month of August, but that could definitely change at any point for better or for worse.
Ethereum had a rough August, coming in at the number 10 rank in terms of performance for the month. On August 1st, it ended the day at $420.75, starting the month out at a relatively moderate value per share.
On the 14th of the month, the value started to drop drastically, eventually dipping down under the $300 mark. The value of a single ETH was just under the $300 mark on the last day of August at $283.00.
So, from August 1st at market close to the 31st at market close, the coin declined in value by $137.75, or 32.73%.
Ripple is an altcoin that was introduced in 2011, almost 10 years after the coin鈥檚 development began in 2004. It was originally meant to be a peer-to-peer transaction platform but was later also developed as a coin.
It is fairly unique in that you can purchase your XRP not only with your traditional currency or other coins but also with units of cell phone minutes or earned flight miles.
Ripple is pretty consistent in its number 3 rank in terms of capitalization, but because its value per share is so low, it tends to jump around a little bit in our ranking of monthly performance.
For the month of August, Ripple came in at #7 in terms of performance. It experienced a value decrease of almost 25%, but in USD, that only translated to $0.11. On August 1st, the coin was valued at $0.445 per XRP, and at market close on August 31st, it finished at $0.335.
Bitcoin Cash鈥檚 existence is the result of a 鈥渇ork鈥?in the original setup and implementation of Bitcoin in 2017. Essentially, this means that Bitcoin Cash is an improvement on the original by offering faster and cheaper transactions.
Bitcoin Cash (BCH) is pretty consistent in rank for the market cap list, typically coming in at #4 as it did this month. But in terms of performance, it is about as consistent as you can expect a coin to be, which is to say not very.
This month, it came in at #9 of 10 in our performance ranking, having dropped in value by 29.4%. On August 1st, a single BCH was at $769.35 by market close. At the same time on August 31st, it was at $543.08, meaning that it had a negative value change of $226.27.
EOS is another heavy-hitting altcoin that was introduced fairly late in the game in 2017 as an ICO, or initial coin offering.
Like many of the coins in the top 10, EOS has a supply cap, meaning that it will not release more than the 1 billion that they鈥檝e established as a cap. Currently, EOS has a circulating supply of just over 900 million coins.
EOS is another one of the top 10 coins that have a pretty low value per share in comparison, but it stays relatively consistent in our performance ranking. This month, it comes in at #4, with a value drop of 11.43% from the 1st of August to the 31st.
On the 1st of the month, it closed at $7.26 per single EOS, and on the 31st, it closed at $6.43. This means that it dropped in value by $0.83.
Stellar is another relatively new coin, only having been introduced in 2014, and it was developed and introduced as an improvement to Ripple. Stellar is said to offer faster transaction speeds when compared to Ripple.
Ending this month, Stellar is #6 in terms of market capitalization and #5 in terms of performance. This coin typically stays under 50垄, and from August 1st to the 31st, its value decreased from $0.276 to $0.222. This is a difference of -$0.054, or -19.57%.
Litecoin was introduced in 2011 as another improvement to Bitcoin鈥檚 setup, particularly promising to deliver faster transaction speeds.
With a negative percent change of 20.45% from August 1st to August 31st, Litecoin ranked #6 in performance this month. At market close on the first of the month, a single LTC landed at $77.86. On the last of the month, it settled at a value of $61.93, $15.93 less than the 1st.
The Tether coin is actually unlike most other coins in the top 10, in that it is essentially a cryptocurrency representation of the US dollar. They also offer a EURT coin, which is a representation of the Euro.
Tether has been in the #1 performance spot pretty regularly, as it typically either has no change in value or a very small loss or gain. This month is no different with a positive value change of 1.01%.
On August 1st, the value at market close of the USDT coin was $0.99, and it ended August 1垄 higher at $1.
This coin was created as an improvement to Ethereum and hopes to eventually evolve into a platform that can handle all types of transactions, from everyday peer-to-peer to eventually facilitating governmental transactions!
Cardano comes in at #8 in terms of performance this month, having dropped in value by 27.14%. Its value remains relatively small, so its nearly 30% price drop really only meant that the value per ADA dropped from $0.140 on August 1st to $0.102 on August 31st.
Monero does not often make our top 10 market cap coin list, but it ended August at the #10 slot. This coin was introduced in 2014 and runs on an obfuscated public ledger, which means that it has the typical features of a public ledger, except that the source, amount of transaction, or destination is not broadcasted in the same way.
This essentially means that Monero offers a level of privacy in transactions that other coins do not.
Monero came in at #3 in terms of performance this month, starting out at $128.15 per XMR and ending August at $116.66. The coin鈥檚 value drop of 8.97% was a small drop in comparison to many of the other top 10 market cap coins this month.
The month of August was not really a busy one for cryptocurrency news, but there are a few top stories that we鈥檇 like to share. If you are a current or potential investor of any cryptocurrency, keeping up with the news is an important part of the process.
Though not every day, or even every month, will provide you with a riveting story, keeping your ear to the ground is always a good idea.
In the world of cryptocurrency, there can be some terms and situations that are so unfamiliar and complex-sounding that they make your eyes cross, and the ETF decision is definitely one of them. This story is majorly important, though, so we鈥檙e going to quickly break it down.
An Exchange-Traded Fund (ETF) is a type of investment that is traded on a stock exchange. It is one of the three most commonly invested funds, with the other two being mutual funds and index funds.
They aren鈥檛 stocks, but they are representations of assets that can HOLD stocks, as well as bonds and other commodities.
The current situation, which has had an effect on the crypto market in more ways than one, is that there is an ETF called Cboe VanEck/SolidX that is backed by Bitcoin.
Because Bitcoin is decentralized and still relatively unregulated, the decision of whether or not to allow this ETF listing has been brought to the U.S. Securities and Exchange Commission (SEC).
In July, the SEC rejected another Bitcoin ETF from being listed due to concerns about fraud, so this new ETF鈥檚 fate was being watched like a hawk by current and possible future Bitcoin owners.
The biggest problem came when the SEC announced on August 7th that the decision was being delayed until September 30th because they wanted more time to consider the situation.
This announcement put the cryptocurrency world, particularly Bitcoin, in a panic.
The coin dropping below $7,000 so quickly was a cause for concern with many Bitcoin owners, and it showed in the market. In fact, it didn鈥檛 return to that point until market close on August 28th, where it rested at $7,096.28.
But Bitcoin wasn鈥檛 the only coin that suffered from this panic. Ethereum, the coin that was projected to surpass Bitcoin in terms of market cap, fell under $300 per ETH on August 13th, which was unprecedented for the coin.
In a single day, the coin dropped in value by 17% and didn鈥檛 really recover even by market close on the last day of August.
This is a story that should be closely monitored, especially as the September 30th date gets closer, and if you are a current owner of Bitcoin or Ethereum, we recommend taking some time every day to check the news and weigh your options depending on how the market is looking.
Making informed decisions as opposed to decisions made in impulse and panic is the way to go with this volatile cryptocurrency market.
Unikrn, a platform created and used for esports gambling with cryptocurrency that boasts investor names like Mark Cuban, has found itself on the wrong end of a lawsuit this month.
The reason? The platform rolled out an ICO called UnikoinGold that鈥檚 purpose may not have been clearly stated to investors.
The plaintiff used 10 ETH to purchase almost $3,000 worth of the UnikoinGold coin after he believed the platform insinuated that the coin would 鈥渋ncrease in value and become worth more than the virtual currencies invested.鈥?/p>
But the Unikrn platform states that the coin was presented as 鈥渁 currency that could be used to place bets on the website.鈥?/p>
The suit is alleging that Unikrn violated laws put in place by the SEC to regulate ICOs. Esports betting, and sites that support betting using cryptocurrency, is increasing in popularity, and that leaves the door open for ICOs and fraudulent platforms to lure you in and scam you of your money and cryptocurrency.
This situation is an important reminder that independent research is always necessary when it comes to financial investments, especially in the world of cryptocurrency where nothing is guaranteed.
Just like any other product or investment, testimonial from a celebrity or well-known wealthy investor should NEVER be the ultimate decisionmaker, especially in the world of cryptocurrency, where nothing is guaranteed.
The SEC issued the following warning.
Though the value and path of individual coins is not predictable, August certainly had an unwelcome and unexpected effect on a few of the most popular coins.
We believe that the major price drops are due to the SEC鈥檚 delayed ETF decision, which was supposed to come in August but was moved to the end of September at the last minute.
It鈥檚 hard to say whether the decision will continue to have an effect on the market until the decision is made or if we鈥檒l see the effects in the beginning of October instead.
If you own ANY coin, we always recommend that you stay up to date on the market and top news stories, but this is going to go double for this next month. This SEC decision is clearly a big one for the world of cryptocurrency, but it is uncharted waters and therefore impossible to say if the effect will be a positive or negative one.
If current investors of Bitcoin, Ethereum, and other big-name coins continue to lose confidence, we may see the price continue to fall regardless of the outcome of the SEC鈥檚 decision.
But we can speculate that if the SEC approves the ETF as a listing, it may increase the legitimacy and overall confidence in the coin鈥檚 ability to succeed and continue to grow.
Cryptocurrency is impossible to predict, and our historical data is very limited, meaning that charting a possible path based on previous years is extremely difficult and unreliable.
Independent research from a range of sources will be your key to determining your best course of action, so please keep that in mind as we enter into this next month! It could be a crucial one for the entire cryptocurrency world, and we can鈥檛 wait to see what happens.