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Welcome to the morning briefing in Asia, a daily summary of the best stories during the hours and an overview of market movements and analyzes. For a detailed overview of the American markets, see the Americas of the Coindesk Crypto Daybook.
The lever on cryptographic markets returns to bull market levels, even if last Thursday’s withdrawal reminded traders how speeds surpassed can relax.
Q2 of Galaxy Research Crypto lever state shows that crypto-collateralized loans increased by 27% in the last quarter to 53.1 billion dollars, the highest since the beginning of 2022, fueled by the record demand for DEFI loans and an appetite renewed for the risk.
This backdrop prepared the land for Shakeout last week.
Bitcoin retirement from $ 124,000 to as low as $ 118,000 has sparked more than a billion dollars in liquidations through cryptographic derivatives, the largest long erasure since early August. Analysts considered him a healthy gain in profit rather than the start of a reversal, but he stressed how fragile the market becomes when the lever builds it quickly.
Galaxy analysts argue that stress points are already visible.
In July, a wave of withdrawals on Aave pushed the borrowing rates of the ETH above the ignition yields of Ethereum, breaking the “loop” trade economy where the dotted ethn is used as a guarantee to borrow more eth. The unfolding sparked a rush towards the outlet of stimulum positions, sending the queue queue of the Ethereum beacons chain to a 13 -day record.
Galaxy has also pointed out that borrowing costs for the USDC on the over -the -counter market have increased since July, even if chain loan rates remain stable.
The difference between the two has widened to its highest level since the end of 2024. This disconnection suggests that the demand for dollars outside the chain exceeds the liquidity of liquid, creating a gap that could amplify volatility if the conditions are tightened more.
With the institutional demand and the entries of FNB always supporting the optimistic backdrop, the strategists remain constructive on the crypto.
But between the volumes of hot air balloon loans, the concentration of loan power, the cracks in liquidity DEFI and a widening gap between the chain and out -of -chain markets, the system shows more constraint points, writes Galaxy.
The $ 1 billion hunting on Thursday was a warning that the return of the lever effect cuts in both directions.
Market Movers
BTC: Volatility has plunged into the markets before Jackson Hole’s speech by Jerome Powell, Paris traders on September drops in September, but a certain complacency warns could hide risks because the BTC is negotiated at $ 118,061.51, up 0.44%.
ETH: A record of $ 3.8 billion in ether is in queue to disconcert with a 15 -day wait, adding potential lucrative pressure even depending on ETF and cash, ETH negotiating at $ 4,524.10, up 2.13%.
Gold: Gold is negotiated at $ 3,332.95, down 0.11%, because the warmer American inflation data reduced the fed rate betting and let XAU / USD be consolidated over the key of $ 3,310 before the word of Jackson Hole de Powell.
Elsewhere in crypto
- Stablecoin Boom has made mergers targets and acquired (Decrypt)
- Why circle and band (And many others) Launch their own blockchains (Coindesk)
- Gemini hiring Goldmans, Citi, Morgan Stanley and Cantor as a main bookrunners for his IPO (Coindesk)
