Market Overview

The crypto market dropped sharply today, with the CoinDesk 20 Index falling 3.6% in the past 24 hours, showing risk aversion ahead of the U.S. core PCE inflation report.

This report is a key indicator for the Federal Reserve and could shape the pace of upcoming interest rate cuts. Analysts warn that a hotter-than-expected figure may push the Fed toward a “one-and-done” rate cut stance at its September meeting.

Bitcoin and Ethereum Outlook

Analysts at Bitunix Exchange noted that Bitcoin (BTC) is currently testing critical levels:

• Watch if $114.5K becomes support

• Or if a retest of $107.6K confirms market resilience

Meanwhile, Ethereum (ETH) open interest remains near record highs at 2.10 million ETH, showing stronger investor preference for ETH compared to BTC.

Derivatives Market Trends

• Overall futures open interest (OI) across the top 20 coins fell, reflecting capital outflows.

• Solana (SOL) OI surged to a record high of 63.84 million, as SOL’s price rallied to $217, a level last seen in February.

• CME Bitcoin futures OI dropped to its lowest since April (135.72K BTC).

• Funding rates for Ether, Tron, and BNB turned slightly negative, hinting at bearish bets.

• BTC options showed growing downside bias, with puts trading at a five-volatility premium over calls.

Solana’s Revenue and DeFi Growth

Despite the surge in futures activity, Solana’s Q2 application revenue dropped 44%, falling to $576.4M from $1B in Q1, according to Messari.

• Pump.fun (PUMP) led with $156.9M, but still fell 44% as the memecoin hype cooled.

• Axiom was the bright spot, soaring 641% to $126.6M, proving protocol-specific growth can defy broader trends.

• Jupiter (JUP) earned $66.4M (–16%), while Phantom and Photon saw steep declines of 65% and 72%.

Still, Solana DeFi TVL (total value locked) grew 30% in Q2 to $8.6B and has now crossed $11B, making it the second-largest DeFi network after Ethereum.

Key DeFi Players on Solana

• Kamino Finance surged 34% to $2.1B TVL, boosted by the launch of Kamino Lend V2, which drew $200M deposits and $80M loans in 3 weeks. Kamino now holds 25% of Solana’s market share.

• Raydium rebounded strongly, rising 54% to $1.8B TVL, reclaiming second place with 21% market share, overtaking Jupiter’s 19%.

• DEX trading volumes declined, with average daily spot volume down 45% to $2.5B, reflecting cooling memecoin momentum.

Key Takeaways

• Crypto market down 3.6% as investors await U.S. inflation data.

• Bitcoin and Ethereum show diverging investor sentiment, ETH holding stronger.

• Solana futures open interest hits record high, despite weaker revenue.

• DeFi on Solana grows 30%, now $11B+ TVL, ranking second behind Ethereum.

• Memecoin slowdown impacts app revenues, but protocols like Kamino and Axiom show strong growth.