The crypto market closed August 2025 with sharp swings and record liquidations.
Bitcoin (BTC) dropped below $108,000 after triggering over $530 million in forced sell-offs, even as institutions like Ming Shing Group poured nearly half a billion dollars into the asset.
Ethereum (ETH) surged to a new yearly high of $4,885 before pulling back, while Solana (SOL), Morpho (MORPHO), and meme coins drove additional volatility.
At the same time, new stablecoin launches and the U.S. move to publish GDP on blockchains signaled a deeper shift in crypto’s global adoption.
Here’s a breakdown of the week’s biggest shifts and what they mean for investors moving forward.
Strong gains and volatility in the market
Bitcoin (BTC) fluctuates and records $229 million in liquidations on August 26, 2025
Bitcoin (BTC) experienced sharp volatility on August 26, 2025, dropping to $112,800 before quickly recovering to around $113,000. This move was accompanied by significant liquidations of short positions, totaling approximately $229 million, highlighting the pressure on traders betting against the asset.
In addition to the liquidations, BTC was boosted by notable institutional inflows:
- DDC Enterprise acquired about 100 BTC, equivalent to $11.36 million.
- Ming Shing Group, from Hong Kong, announced plans to invest approximately $483 million in Bitcoin, reinforcing its long-term outlook on the asset.
These developments show that, despite short-term fluctuations, Bitcoin continues to attract corporate and international capital, consolidating its role as the leading digital store of value.
Ethereum (ETH) surges 15% and reaches a new all-time high
Ethereum (ETH) was the highlight of the crypto market on August 27, 2025. The cryptocurrency jumped nearly 15%, hitting a new 2025 record at around $4,885 before stabilizing between $4,300 and $4,800.
This strong rally was driven by three main factors:
- Massive institutional inflows: more than 4.1 million ETH, worth $17.6 billion, were purchased by institutional treasuries.
- JPMorgan projections: the bank emphasized the expected positive impact of Ethereum staking ETFs, pointing to greater liquidity and legitimacy for the asset.
- Regulatory advances: clearer rules strengthened confidence among both institutional and retail investors.
As a result, the ETH/BTC pair reached its highest level of 2025, reinforcing Ethereum’s temporary dominance over Bitcoin and reigniting debates about its future appreciation.
Altcoins and Meme Coins Show Strong Swings Between August 25 and 28, 2025
Between August 25 and 28, 2025, the altcoin and meme coin market recorded sharp moves:
XRP (Ripple)
On August 25, 2025, XRP rose between 3% and 7%, nearing $3. The rally was driven by dovish statements from the Federal Reserve (Fed), which signaled possible monetary easing in the U.S. The token also registered on-chain liquidation growth above 500%, according to data from Blog MevX and AdvFN Brazil, reinforcing institutional attention on the asset.
Solana (SOL)
On August 28, 2025, Solana (SOL) gained 4.6%, outperforming Bitcoin (BTC), which rose 1.8%, and Ethereum (ETH), which edged up just 0.1%.
Solana’s price climbed from $195 to over $212, consolidating itself as the leading altcoin in the crypto market’s recovery.
This surge came amid a broader rebound in risk assets:
- The S&P 500 rose 0.69%, and the Nasdaq advanced 0.4%.
- While Bitcoin and Ethereum showed limited gains, investors shifted focus to altcoins with greater short-term potential.
- With lower liquidity compared to Ethereum, Solana reacts more quickly to capital inflows, which amplifies its price movements.
Morpho (MORPHO)
The Morpho (MORPHO) protocol was another standout on August 28, 2025, soaring 22% to $1.98. The growth was tied to increased use of the protocol in DeFi strategies, strengthening its liquidity.
Meme Coins: Extreme Volatility
The meme coin segment was particularly intense during the week:
- YZY (Kanye West) reached a market cap of $3.14 billion on August 27, but plunged 70–75% the next day, causing estimated losses of $50 million.
- TROLL skyrocketed 800–900% on August 26.
- HODLess gained 128% during the same period.
- BITTY jumped 500% by August 28, while tokens such as JESU, TITANIUM, LIGT, and lesgo also posted significant market cap increases.
Bitcoin (BTC) Drops Below $108,000
Source: Coinmarketcap
On August 28, 2025, Bitcoin (BTC) fell to around $108,000, marking its lowest price since July 8.
The move was triggered by the opening of the U.S. stock market on Wall Street and intensified by massive whale sell-offs on exchanges such as Binance.
Mass Liquidations Surpass $530 Million
According to CoinGlass data, total crypto market liquidations reached nearly $540 million in just 24 hours.
A large portion of these liquidations came from leveraged Bitcoin positions, putting additional pressure on the price.
Bitcoin Technical Analysis
Despite the sharp decline, analysts identified short-term relief signals:
- RSI (Relative Strength Index): showed short-term bullish divergence, suggesting a potential reversal.
- Critical support: the $108,000 range acted as an initial defense.
- Key resistance: to avoid a deeper correction, Bitcoin needs to close the week above $114,000.
Impact on the Crypto Market
Bitcoin’s drop affected other large-cap cryptocurrencies, which also suffered losses.
While risk sentiment increased, long-term investors see the correction as a strategic entry opportunity.
Bitcoin ETFs and institutional inflows remain key variables for a potential price recovery in the coming weeks.
Ethereum Pulls Back After All-Time High
Source: Coinmarketcap
On August 29, 2025, Ethereum (ETH) fell below $4,400 — about 11% lower than its all-time high of $4,946, recorded on August 24.
Despite the correction, ETH is still up 16.6% over the past month and 73.2% over the last three months, maintaining strong year-to-date performance.
Main Factors Behind Ethereum’s Drop
1. Massive staking withdrawals
More than 1 million ETH are currently in the withdrawal queue from Ethereum staking, causing record transaction delays and increasing selling pressure. This outflow is raising short-term concerns among investors.
2. Crypto market liquidation
The correction was worsened by a $2.7 billion Bitcoin sale by a whale, which triggered forced liquidations and widespread volatility, directly impacting ETH.
3. Institutions continue buying ETH
Despite the drop, 11 institutions now hold more than 3 million ETH (≈ $13 billion).
One highlight is SharpLink Gaming, which purchased 55,463 ETH ($252 million) at an average price of $4,462, raising its reserves to 797,704 ETH.
4. Optimistic market outlook
Standard Chartered described the correction as a “strategic entry point” and projects Ethereum could reach $7,500 by the end of 2025.
On the Myriad (DASTAN) prediction app, nearly 80% of traders are betting that ETH will hit $5,000 before the end of the year.
Stablecoins in the Spotlight: New Launches and Regulatory Developments
MetaMask launches stablecoin mUSD
On August 26, 2025, MetaMask introduced its stablecoin mUSD, fully backed 1:1 by the U.S. dollar.
The asset will be directly integrated into the Ethereum and Linea networks, expanding liquidity in DeFi protocols. Its main differentiator is support from Mastercard, opening the door to greater global usability in digital payments.
Coinbase announces USD1 stablecoin with $2.4B supply
On August 27, 2025, Coinbase added the USD1 stablecoin to its roadmap, with an initial estimated supply of $2.4 billion.
The project aims to compete with industry giants like Tether (USDT) and USD Coin (USDC), offering strong integration with Coinbase Wallet and Base Network, boosting adoption across its ecosystem.
China considers yuan-backed private stablecoins
On August 28, 2025, reports indicated that China is studying the possibility of allowing private stablecoins backed by the yuan, in addition to the existing e-CNY (official digital yuan).
The move could strengthen China’s influence in international digital payments and provide an alternative to the dominance of the U.S. dollar.
Europe accelerates digital euro development
Also on August 28, 2025, European authorities reaffirmed progress on the digital euro, which will be built on Ethereum and Solana networks.
The initiative aims to reduce cross-border transaction costs, increase transparency, and consolidate the European Union’s digital sovereignty.
CFTC launches “Crypto Sprint Initiative” in the U.S.
On the same day, August 28, 2025, the U.S. Commodity Futures Trading Commission (CFTC) announced the launch of the “Crypto Sprint Initiative”, a program designed to accelerate the development of regulatory frameworks for digital assets.
The initial focus will be on stablecoins and derivatives, bringing greater clarity for institutional investors.
Hyperliquid Dominates 80% of the Perpetual Futures Market, but Expansion Raises Questions
Between August 25 and 27, 2025, Hyperliquid, a decentralized exchange (DEX) focused on cryptocurrency perpetual futures, achieved an impressive milestone: it now controls approximately 80% of the market share in this segment.
This leap put Hyperliquid ahead of traditional players like dYdX and GMX, consolidating its position as the leading decentralized derivatives platform. The achievement is attributed to factors such as:
- Deep liquidity and competitive spreads, attracting both institutional and retail traders.
- User-friendly interface, making it easier for traders used to centralized exchanges (CEXs) to transition.
- Rapid user base growth, fueled by staking incentives and volume reward campaigns.
However, analysts — including those cited by Economic Times — have raised concerns about the sustainability of such rapid expansion. Key points of attention include:
- Reliance on incentives: a significant portion of liquidity may be tied to temporary reward programs.
- Concentration risk: controlling 80% of a decentralized market could create fragility if technical failures or loss of confidence occur.
- Regulatory pressure: crypto derivatives are under increasing scrutiny in markets like the U.S. and European Union, which could impact decentralized exchanges.
Thus, despite achieving market leadership in record time, Hyperliquid still needs to prove it can maintain its share sustainably — balancing innovation, organic liquidity, and governance.
Solana Seeker: The New Affordable and Balanced Crypto Phone from Solana
Source: Decrypt
Launched on August 25, 2025, the Solana Seeker enters the market as an affordable crypto phone, priced at $500 — half the initial cost of the Solana Saga (2023).
With a $50 pre-sale discount, the goal is to deliver a balanced smartphone: less premium, but with relevant native crypto features.
Integrated Crypto Features
- Seed Vault: physical vault for private keys with fingerprint authentication.
- Wallet ID (.skr): crypto-friendly identity for transfers.
- Solana dApp Store: exclusive store for Web3 and DeFi applications — still limited in variety.
These differentiators make the Seeker one of the first smartphones with native self-custody.
Potential and Risks
The Seeker lowers entry barriers for crypto enthusiasts, but its success depends on the ecosystem’s growth:
- Expansion of relevant apps in the dApp Store.
- New airdrops and incentives for users.
- Wider adoption beyond the crypto niche.
Without these factors, it risks repeating the low initial traction of the Saga.
“CR7” Memecoin Scam: Fake Cristiano Ronaldo Token Causes $143M Loss in Minutes
On August 25, 2025, rumors surfaced that Cristiano Ronaldo would launch his own memecoin. Without any official announcement, crypto influencers spread the alleged contract for the CR7 token on the Solana network, leading investors to believe it was a legitimate project.
The fake token quickly reached a $143 million market cap (≈ R$770 million) in just six minutes. Moments later, it collapsed 98% in nine minutes, a textbook pump-and-dump scheme.
One dramatic example: an investor purchased about $9,827 worth of CR7 tokens, which dropped to just $1 within minutes.
Who Was Behind the Scam?
According to Bubblemaps analysis, the scheme was orchestrated by a group of influencers who hyped the token, manipulated the market, and quickly pulled liquidity. The strategy was similar to other celebrity-linked memecoin scams, such as YZY (Kanye West).
The Portuguese football star has no connection to the fake CR7 token. His only involvement in the crypto sector remains his 2022 partnership with Binance, which launched official NFT collections.
Lessons for Investors
This case highlights the need for extreme caution when investing in memecoins — especially those tied to celebrities without official confirmation. Viral rumors can translate into massive financial losses in a matter of minutes.
U.S. Begins Publishing GDP and Economic Data on the Blockchain
On August 26, 2025, the U.S. Department of Commerce confirmed it will begin publishing economic data — such as GDP — directly on the blockchain.
The project was introduced by Commerce Secretary Howard Lutnick during a cabinet meeting with President Donald Trump, as part of the strategy to position the U.S. as the “blockchain capital.”
Which Blockchains Are Being Used?
- Bitcoin
- Ethereum
- Solana
- TRON
- Stellar
- Avalanche
- Arbitrum One
- Polygon PoS
- Optimism
Integration is being carried out with Chainlink and Pyth Network oracles, with support from exchanges such as Coinbase, Gemini, and Kraken.
How Is the Data Recorded on the Blockchain?
GDP figures and other indicators are published as a cryptographic hash (SHA-256) of the official PDF reports.
This ensures the content is immutable, verifiable, and globally accessible, enhancing transparency and trust in the information.
Objectives of the U.S. Government
- Create public transparency for economic statistics.
- Make data immutable and tamper-proof.
- Encourage new use cases in DeFi, such as automated trading, prediction markets, and tokenized products.
According to Lutnick, the initiative is initially a “proof of concept” — a testing phase — and will not replace traditional disclosure channels for now.
Criticism and Concerns
Despite its symbolic impact, experts raise doubts about its real practical utility:
- The initiative may serve more as political marketing than structural transformation.
- Government agencies still rely on centralized systems.
- The challenge will be turning this data into real-world applications for citizens, businesses, and financial markets.
