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September 09, 2021

Ember Nuggets #3

What are Ember Nuggets?

Ember Nuggets will be a weekly update with commentary from the management team on what’s happening within the crypto market - news, developments, market trends, and more.

Nugget 1:  Bitcoin August Recap

Bitcoin saw steady, positive growth over the month of July opening around $42.1K and closing around $47.1K, representing 11.9% MoM gain. Bitcoin’s on-chain volume increased by 22.2% MoM in August. This is an important economic indicator as it helps us see the utilization of the network by stakeholders. Furthermore, the increased utilization of Bitcoin also helped support a resurgence in mining revenue, especially as the network has rebounded after the China crackdown earlier this year. Miners earned $1.4B in August, representing a 44.6% increase MoM.

Nugget 2: Ethereum August Recap

Ethereum opened August at around $2.6K and closed around $3.5K, representing a 34.6% MoM gain. Ethereum’s on-chain volume increased by 35.2% MoM in August. The network saw increased utilization that can be attributed to a resurgence in demand for NFTs like CryptoPunks, Bored Apes Yacht Club, and Loot to name a few. NFTs saw $3.25B in volume on ETH in August, with OpenSea dominating the market with 97.4% market share. 

August was also a notable month for Ethereum, with EIP-1559 (London Fork), going live. For the month of August, ~150K ETH was burned. Although not deflationary, the burn mechanism curbs inflation in the near-term.

Thank you for reading!

Harsharn Singh
Investment Associate | Ember Fund

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