Friday, August 8, witnessed the cryptocurrency market experiencing modest but significant gains. Catalysts to these gains included President Donald Trump’s anticipated signing of an executive order permitting the use of cryptocurrencies in retirement saving plans, known as 401(k)s. This decision, combined with the U.S. Securities and Exchange Commission (SEC) discontinuing its appeals against Ripple Labs, contributed to the growth observed in the crypto market.
Large-cap cryptocurrencies perform robustly
Ethereum (ETH), in particular, experienced notable growth, successfully breaking past the $4,000 mark for the first time since December 2024. However, the crypto’s spurt was short-lived as it slumped slightly, landing at $3,966 — a 3.5% increase.
This successful rally followed the circulation of news indicating that public ETH treasury firm, Fundamental Global, had submitted a $5 billion shelf registration with the SEC. The announcement provoked speculation that the funds may be designated for ETH, a move that would considerably outshine publicly disclosed Ethereum treasuries, as confirmed by Founder of The Defiant, Camila Russo.
At the week’s end, ETH’s gains stood at 9.5%, positioning it as the leading crypto asset among the top-ten by market cap. On the contrary, Bitcoin (BTC) experienced a rollercoaster performance, starting as high as $117,200 before normalizing to $116,145. Bitcoin performance remained static over the past week.
Surge in Solana (SOL) and Ripple (XRP)
Other cryptocurrencies followed suit with Solana (SOL) growing by nearly 4% to end at $175.75. Especially impressive was the performance of Ripple’s coin XRP, witnessing an impressive 6.7% surge, landing it at $3.24.
The cause of XRP’s price surge was linked to news about the joint decision by SEC and Ripple to drop their appeals in the Second Circuit. This marked a successful conclusion to a drawn-out legal battle lasting five years. Moreover, news about Ripple’s acquisition of the stablecoin platform Rail for $200 Million influenced XRP’s growth too.
The overall cryptocurrency market capitalization escalated by 1.2% over the past day, totaling over $3.93 trillion. Moreover, trading volume over the same period summed up to $154 billion. In terms of liquidation, crypto positions worth around $300 million were liquidated, with ETH featuring the most liquidations amounting to $114 million. BTC and XRP followed with respective liquidations worth $33 million and $34 million.
Spot Bitcoin ETFs record substantial net inflows
Spot Bitcoin exchange-traded funds (ETFs) noted over $280 million in net inflows on Aug. 7, indicating two consecutive days of net inflows following four days of outflows. ETH ETFs paralleled Bitcoin products, pulling in $222 million net inflows.
Facilitating crypto into mainstream
Furthering the cause of mainstream crypto adoption was President Trump’s recent executive order allowing the inclusion of cryptocurrencies, private equity, and other alternative assets in 401(k) plans. Crypto experts perceive this as a significant move towards the mainstream use of cryptocurrencies.
Former head of digital assets at Nasdaq, Ira Auerbach, noted that this allowance for Americans to invest even 1% of their $12 trillion in 401(k) savings into digital assets represents a remarkable moment. He acknowledged that it introduces ordinary savers to the swift-growing asset class in a tax-friendly manner. Moreover, it initiates innovation and allows U.S. asset managers to develop compliant crypto funds, steering them away from off-shore operations.
