BGB Sail: July Edition
Bitget Academy is delighted to announce the release of our new BGB Sail Series, which reflects on BGB performance each month alongside the market summary.
BGB Sail: June Edition can be found here.
Follow Bitget Academy for the upcoming analysis on crypto lending contagion:
Twitter | Telegram | LinkedIn | Facebook | Instagram
Market Summary
July began with the news of crypto lending Celsius filing for Chapter 11 Bankruptcy, meaning that they are asking for immediate, though short-term, deferral of debt repayments to ‘reorganise’ their business activities and ‘restructure’ finances. The collapse of Terra (LUNA) has paralysed several crypto lenders, spreading fears across the market.
However, good signals have been proving the strength of Bitcoin and the crypto market as a whole. The global market cap surpassed US$1 trillion once again on July 18 - more than one month after it slipped below this mark.
Source: CoinMarketCap
That was briefly before Bitcoin reclaimed the US$23,000 mark on July 23 and 10 days before Bitcoin hit US$24,000. The Fear Greed Index for June remained below 17 or Extreme Fear. By July 30, it had more than doubled, reaching 42, meaning a restoration of faith in the digital space.
There have been other indicators of positive sentiment among investors, including:
(1) Crypto projects have collectively received at least US$680 million in funding from big tech companies and venture capitalists. The banking giant Barclays has joined the cryptoverse, whereas the prestigious name in the art industry, Christie’s Auction House, is supporting art-related Web3 projects via the announcement of ‘Christie’s Ventures’ for fintech.
(2) Data from CoinShares shows that crypto investments products have registered the fifth consecutive weeks of capital inflows with US$81.1 million in the last week of July. July (US$473 million) has thus corrected 98.5% the US$481 million outflow of June.
Last but never least, stablecoins saw a more ‘stable’ July as Tether, the biggest stablecoin by market cap, finally regained its US$1 peg after 68 days. But that is not enough to keep its dominance: USDT’s market share has fallen to 42.5% as of July 22, which is equivalent to a decrease of 43.1% in dominance since July 2020. An explanation for its declining popularity is the rise of USDC (Circle), which has swooped away Tether’s American users. Hence, USDT activities are highly concentrated during Asian and European market hours.
BGB Performance in July
Things started to look better for crypto investors in July as most cryptocurrencies closed the month with a positive growth. Ethereum was the best performer, understandably because of news on the final testnet merge that will take place from August 6 to August 12.
BGB Recorded Only One Day Of Negative Returns
Before we dive into the actual numbers of this month, let us remind you of one common investment term. When we talk about return, we are referring to the daily cumulative return. Daily return is simply what you got (profit/loss) at the end of the day, while daily cumulative return reflects the aggregate changes in return. Don’t freak out if you see Bitcoin prices in red (and don’t panic sell!), because it may turn out that your investments are still doing good.
Overall, BGB had done fairly well in July with a return of 11.74%. What is noticeable here is, BGB is the only token that has a positive cumulative return on 30 days out of 31 days of July. What does that mean actually? Looking at the table below, you’ll see that BGB holders could have sold their BGB at any time and still be able to lock in a profit.
Red boxes demonstrate the days where selling an asset was a bad idea. So for BGB, except for the first day of July, all the other days were SAFU. BGB delivered us a steady performance compared to other cryptocurrencies.
To explore more about BGB, please refer to the following reads: BGB’s Q1 2022 Performance and BCG Report.
BGB Saw An Increase In Total Addresses
BGB volume decreased by less than 1% in July, mostly due to the fact that our diamond hands were keen on the lucrative events for BGB holders. Volume was going down for Ethereum and other exchange tokens as well, but in the extreme cases of FTT and KCS, the suffering was as heavy as 26% and 18%, respectively.
To be noticed is that the total number of BGB addresses has continuously risen since mid-June, which indicates a growing interest in BGB among investors. With a change of +16.13% over the period, we can expect an increase of more than 130% in the number of BGB total addresses annually.
Benefits Of Holding BGB
Powering the vibrant Bitget Ecosystem, BGB is a small token with big impact. Think of it as the perfect mediator, who helps smooth out communication across multiple chains, nudge the transition from Web2 to Web3 and dislodge regional royalties. More on this can be found here.
For the time being, holders can use BGB to enjoy a direct 20% discount in transaction fees and get early access to exclusive fundraising events on Bitget Launchpad. Other lucrative opportunities are also available on a weekly basis, don’t forget to check out Bitget Hot Takes - our weekly report - to keep yourself updated!
Invests In BGB Means To Protect Yourself
Amid fears about stagflation and the recent tumble of Euro against USD, many have realised that fiat and savings are no longer reliable options. Bitget users have therefore turned to BGB Earn, where they can enjoy a DeFi experience with minimum risk.
At the current annual percentage yield (APY) of 6%, BGB Earn offers a holistic solution for savings. Below is a comparison of BGB Earn and the deposit interest rate in some areas:
BGB’s 6% APY appears to be 4.6 times the average rate in Asia and 4.1 times the average rate in North America. Mind you, the base deposit interest rate in the Eurozone is standing at 0%, meaning that savings in Europe don’t generate anything at all. And we are not taking inflation into account here.
In a sense, holding BGB is equivalent to insuring yourself!
Ready to become a BGB Holder? Buy BGB right now: Link for Purchase.
Bitget-Verse
To prepare for a potential crypto winter, Bitget has decided to allocate 6,000 BTC and 80 million USDT, which is equivalent to more than US$217 million at the time of writing (Bitcoin is trading around US$22,900), to the new Bitget Investor Protection Fund. This is another user-centric move from Bitget, the leading crypto derivatives exchange with:
- 200 million users from more than 50 countries
- An average of US$7 billion in average daily trading volume
- The unique Copy Trade function - completely beginner-friendly
- 24/7 support in more than 20 languages
Read more about our investor protection fund on CoinTelegraph and Blockworks.
Spot Futures Activities
Bitget maintained the leader position in the crypto futures market with July’s total volume of US$5.2 trillion in aggregated futures trading activities. For the whole month, there was not a single day that Bitget Futures volume fell below US$118 billion, and the highest 24-hour volume was recorded at US$406 billion on July 18, 2022.
To provide an alternative for our users, Bitget has also launched Bitget Spot Trading and Bitget Innovation Zone, the spot market for high-potential tokens. Within 31 days of July, Bitget Spot Team had listed more than 30 new trading pairs.
Bitget Spot Trading and Bitget Innovation Zone together attracted almost US$2 billion in volume for July. The highest daily volume stood at US$209 million (July 29), a few days after FOMC as part of the crypto mini rally. Also an effect of the FOMC meeting, Bitcoin’s fraction of the total Open Interests (OI) on July 28 reached the month’s peak at 78%. On July 21, Bitcoin OI accounted for 76% of the total OI after the BTC price briefly crossed US$24,000. Normally, the figure would range between 65-67%.
GroupCoin Bitget Elite Club
Bitget is releasing new programs for all trader groups, which our users can fully utilise to develop an economic trading strategy. The first one is GroupCoin, a unique feature for Spot Trading. Users can team up to buy tokens in mass for extremely good prices, for example a group of more than 2,000 can buy BTC at half the price.
For full-time traders, we invite you to join Bitget Elite Club to get rid of maker fees in the first months and waive fees for other types of transactions. Please contact us here to get personalised solutions for your trading!
Bitget Latest Events
BGB holders have the chance to participate in several new events each week. In addition to our $4,163 Welcome Bonus for Newly Registered Users, you can register your Bitget account here to join the weekly, exclusive Live Trader AMA in our community group!
Join us now on these bountiful events:
Bitget August Futures Trading Competition: US$10,000 and Samsung S22 For Grab!
Want To Pay No Fees? Fees Waived For A Whole Month
Buy Crypto With 0% Credit Card Fees
Upgraded Bitget Referral Program
Super Airdrops For Active Users
Exclusive Event For BGB Holders
Follow Bitget Academy for more insights:
