With some areas of the blockchain space showing a potential bottom sign, July showed that the market remains on guard.
The blockchain industry showed impressive resilience in July, and that could signal a period of greater fundamental support for the crypto space in general in the short term. Consider a wide range of indices, including Bitcoin
Price action, opening a position on Ether
And activity in GameFi, there are some strong signs of bullishness returning to this area.
However, it is not a smooth cruise after that. The latest Investor Insights from Cointelegraph Research analyzes key indicators from different sectors of the blockchain industry to navigate the potentially dangerous waters of crypto. In the latest release, Cointelegraph Research’s bearish indicator was at the C level, indicating a short-term warning period. While there are still mixed signals, the general mood is tilted towards the bulls for the month of July.
Download and purchase this report from the Cointelegraph Research Terminal.
Bitcoin and Ether are showing signs of strength
Bitcoin closed July with an increase of 16.6% since the beginning of the month, which is an increase not seen since July 2021. BTC continues to move at the resistance level near $24,000; However, if factors such as reports of positive economic growth from the United States and elsewhere change, the iterative approach of rejection will likely come to a halt at some point. Meanwhile, Ethereum saw its highest unique active wallet addresses ever, up 48% from previous records. Both indicators are bullish for the blockchain space.
GameFi is showing signs of life
The GameFi industry has been deteriorating since the massive market crash in the first half of 2022. However, July saw a 4.7% increase in new users across all GameFi products compared to June. Some of the highlights in the sector include the sale of digital real estate and the sale of a plot of Genesis land for sale for 550 wrapped ether (wETH). Of the $976 million total sold in July, more than 36% of the total value of NFTs, which are part of the GameFi industry, was accounted for by non-fungible tokens (NFTs). This helps paint a picture of back activity and strength in parts of the market.
Low investment of venture capital
Total venture capital investment has declined over the past few months; However, capital inflows fell 43% from June to nearly $1.9 billion in July. This suggests that what may at first appear to be a sense of downfall could prompt a broader decline.
This is because these are levels of capital investment not seen in the blockchain industry since the start of the 2021 bull run. This is also likely to progress into the second half of 2022 and into 2023, as the crypto contagion of failed blockchain companies appears to be all but over.
Cointelegraph Research Team
Cointelegraph’s research department houses some of the best talent in the blockchain industry. By combining academic rigor and filtering through hard-won practical experience, the team of researchers is committed to providing the most accurate and insightful content available on the market.
Demelza Hayes, PhD, is the Director of Research at Cointelegraph. Hays has assembled a team of subject matter experts from finance, economics, and technology to provide the market’s foremost source of industry reporting and insightful analysis. The team uses APIs from a variety of sources to provide accurate and useful information and analytics.
With decades of combined experience in traditional finance, business, engineering, technology, and research, the Cointelegraph Research team is ideally placed to put their combined talents to good use with Investor Insights Report.
Disclaimer: The opinions expressed in the article are for general informational purposes only and are not intended to provide specific advice or advice regarding any person or any securities or investment product.