A stronger inflation report in the US reduced crypto gains in August, with Bitcoin losing ground to Ethereum, while stablecoins emerged as the leaders, according to a recent market report published by Binance.
According to the Binance report, the global market capitalization of cryptocurrencies declined by 1.7% in August 2025. Tailoring their approach to the fresh data from altcoins, investors noted that the US Producer Price Index outperformed, shifting risk sentiment.
Ethereum’s market capitalization rose by 14.2 percent, as Bitcoin’s market dominance slipped to 57.3 percent. Short-term issues aside, corporate treasury teams remained committed to ETH. This time, they bought 4.44 million tokens, 3.67% of the total supply. This buying spree underscores the firm institutional conviction.
The longstanding belief that Federal Reserve rate cuts drive Bitcoin rallies is becoming outdated. Historical experience indicates a poor and errant connection. Markets tend to price reductions in advance, so it is the degree to which the Fed moves that differs from expectations that matters.
Analysts point out liquidity conditions, inflation trends, and institutional flows now control more than the mere rate-cut narrative.
Ethena’s yield-bearing stablecoin USDe took center stage in August. The token’s total market supply expanded by 43.5% to $12.2 billion. This growth, in turn, propelled the USDe market share beyond 4% out of the $280 billion stablecoin market.
USDe emerged as the quickest digital asset to reach the US$10 billion mark, achieving it in 536 days, surpassing USDC and USDT by years. Rate reductions are anticipated worldwide, making yield-sensitive stablecoins extensive and providing a sustainable advantage to the system.
DeFi lending protocols surged in 2025, with total value locked (TVL) up 72% year-to-date. As the leader, Aave commands 54% of the market share, with Maple and Euler approaching US$3 billion in TVL. The boom results from the growing use of stablecoins and tokenised assets, as institutions warm up to decentralised credit markets for yield and transparency.
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Buybacks are becoming the new lever for DeFi platforms. In August, Hyperliquid and Pump. Among other projects, Fun bought back tokens valued at US$166 million to cut supply and signal long-term optimism.
The question is, can they last? Without consistent revenue, buybacks are likely to prove cosmetic instead of structural. Nonetheless, the practice will spread as platforms vie for investor confidence.
The August report revealed that cryptocurrency markets continue to be influenced by macroeconomic factors. However, amidst this volatility, altcoins, stablecoins, and decentralized finance (DeFi) are quietly redefining the landscape. As institutions take the lead in adoption, the upcoming months may rely less on Bitcoin's dominance and more on the resilience of these new models.