Crypto Activity Shows Signs of Recovery as Liquidity Remains Limited

Crypto activity has shown signs of recovery in July, but new liquidity remains limited. The market saw a decline in stablecoin minting and inflows from ETF trading remained weak.

The total supply of stablecoins contracted by 0.6% in July, down to around $312B. Despite this, DeFi lending showed signs of making a return with internal stablecoin liquidity still high.

Aave led the way in lending activity, expanding its loan base in July and dominating lending with a 46.2% market share. Active loans on Aave rose from $11B to $12B, up 7.2% for the month.