Risk assets rallied in August, led by crypto
Crypto.com said in its latest monthly report that global markets broadly recovered in August 2026, with digital assets posting the strongest gains. Bitcoin rose 25.0%, Ethereum gained 32.6%, and Solana climbed 41.5% during the month. In U.S. equities, the Nasdaq advanced 3.9%, the S&P 500 added 2.6%, and the Dow Jones Industrial Average rose 1.3%. Gold gained 9.9%, while real estate fell 4.0%.
The report described August as a month of broad recovery across global financial markets, marked by a sharp rebound in digital assets and continued positive momentum in major stock indexes.
G20 central banks largely stayed on hold
According to Crypto.com, policy divergence across G20 economies became more visible in August as central banks balanced energy-driven inflation against uneven domestic performance.
Most G20 central banks kept rates unchanged and stuck to a wait-and-watch stance after their July decisions. The U.S. Federal Reserve held the target range for the federal funds rate at 3.50% to 3.75%. Its July 29 decision passed by a 9-3 vote, and minutes released on Aug. 19 confirmed a hawkish tone.
The European Central Bank left its three key rates unchanged: the deposit facility rate at 2.25%, the main refinancing rate at 2.40%, and the marginal lending facility rate at 2.65%. Minutes released on Aug. 27 from the July meeting hinted at a possible policy shift in September.
The Bank of Japan kept policy settings unchanged, maintaining the overnight call rate target at around 1.00%. That decision, made on July 30-31, passed by an 8-1 vote.
The Bank of England held the bank rate at 3.75%. The vote was 6-3, with three members favoring an increase to 4.00%. Its next rate decision is scheduled for Sept. 17.
The People’s Bank of China kept the loan prime rate unchanged for a 15th straight month, with the 1-year LPR at 3.00% and the over-5-year LPR at 3.50%. Crypto.com said that signaled cautious easing against weak domestic demand.
The Reserve Bank of India unanimously held the repo rate at 5.25% and retained a neutral stance.
Brazil was the outlier. On Aug. 5, the Banco Central do Brasil cut the Selic rate by 25 basis points to 14.00% and left room for further easing. Even after that move, the report said, Brazil still had the highest interest rate in the G20.
Crypto.com flagged three themes for the outlook:
- Trade tensions and tariffs: Section 301 tariffs of 10% to 12.5% on dozens of trading partners, together with ongoing transatlantic trade friction, could push supply-chain costs and price indexes higher in the fourth quarter.
- Fiscal deficits and sovereign debt: Rising debt-service costs are reducing fiscal flexibility in both developed and emerging markets. The report said overlap between quantitative tightening and sovereign debt management will matter for bond-market stability.
- AI capex adoption: Technology-driven capital spending remains a structural tailwind. If AI-related productivity gains spread from technology into traditional services and manufacturing, potential output in G20 economies could be revised higher by 2027.
DeFi expanded across the board, while ETF inflows stayed strong
Crypto.com said every DeFi category grew in August. Oracles led market-cap performance with a 30.8% increase, while liquid staking drew the strongest market attention on a volume-to-market-cap basis.
Within the oracle segment, Chainlink (LINK) saw market capitalization jump 32%. The report tied that move to a token buyback and whale activity.
Ether.fi was identified as the main driver in liquid staking. The protocol expanded its product suite to include tokenized stocks, metals, and portfolio loans backed by Aave. As part of what the report described as a broader neobank push, the protocol is moving toward a less crypto-centric interface aimed at mainstream consumers.
On fund flows, U.S. spot Bitcoin ETFs recorded $3.5 billion in net inflows in August, the highest level since October 2025. U.S. spot Ether ETFs took in $1.8 billion, the highest since August 2025.
Regulatory activity picked up across multiple markets
Crypto.com said crypto regulation accelerated in August. The U.S. Treasury proposed stablecoin rules under the GENIUS Act. The Bank of England received innovation authority. South Korea, Japan and Brazil tightened transfer and exchange controls to fight fraud and money laundering. Pakistan opened a licensing portal for virtual asset service providers.
Stocks: AI boosted the U.S., Europe faded late in the month, Asia split by market
United States
U.S. equities rose broadly in August, led by AI and semiconductor names. Crypto.com said optimism around AI infrastructure returned after Nvidia posted strong results, helping the Nasdaq Composite lead the major indexes. The S&P 500 reached a fresh high in the middle of the month.
The rally lost some momentum toward month-end. Fed Chair Kevin Warsh struck a hawkish tone at Jackson Hole, and renewed U.S.-Iran tensions sent oil prices higher, trimming gains.
The report highlighted three main drivers:
- AI infrastructure and chip earnings: Nvidia’s Aug. 26 earnings release and better-than-expected guidance reassured investors on demand for AI chips and data centers. Its stock jumped 8.7% on Aug. 27, lifting the broader semiconductor space. The Philadelphia Semiconductor Index was up about 63% year to date.
- Cooling labor market and rate relief: A weaker-than-expected U.S. jobs report on Aug. 7 eased rate concerns and helped lift broader risk appetite early in the month, with the S&P 500 closing at a record high.
- Oil shock and hawkish Fed rhetoric late in the month: Rising crude prices renewed inflation worries, while Warsh’s comments at Jackson Hole pushed Treasury yields higher and weighed more heavily on the Dow and cyclical sectors.
By sector, energy led with a gain of about 7.0%. Information technology followed at about 6.2%, and materials rose about 5.9%. Utilities fell about 4.8%, industrials lost about 2.6%, and communication services also declined.
Europe
European stocks ended August modestly higher, extending gains for a fifth straight month, though momentum weakened by the end of the period. The STOXX Europe 600 hit a record early in the month on solid second-quarter earnings and AI-driven technology optimism, then gave back part of the move as oil prices rose, bond yields climbed, and expectations for tighter European Central Bank policy increased.
Performance diverged by market. Germany’s DAX led on the back of industrial and financial strength, while France’s CAC 40 lagged amid domestic fiscal and political uncertainty.
On sector rotation, basic resources led with a 9.42% gain, technology rose 4.30%, and financial services added 3.23%. Consumer staples lagged, with food and beverages down 3.42% and personal and household goods down 2.75%. Construction and materials fell 2.18%.
Asia
Asian equities were resilient overall in August, but the region did not move in one direction. Developed North Asian markets outperformed, with Japan and South Korea rising, while India and Hong Kong pulled back. Southeast Asia and Australia posted solid gains, supported mainly by financials.
Mainland Chinese equities edged higher. The report said targeted stimulus, resilient industrial output and steady state support partly offset caution tied to weak domestic consumption and the property sector. Flows favored high-dividend state-owned enterprises, industrial capital goods and domestic technology, while consumer-facing property names lagged.
Hong Kong stocks slipped modestly. Crypto.com pointed to profit-taking in large Chinese technology names and a cautious tone ahead of key earnings. Insurers and some financials outperformed hardware makers and property developers.
In Japan, the Nikkei 225 approached highs on strong corporate earnings, governance-driven buybacks and a weaker yen that supported exporters, despite periodic volatility in chip-related suppliers. South Korea’s KOSPI still advanced even as Samsung Electronics and SK Hynix swung sharply, with capital rotating out of concentrated semiconductor positions and into domestic cyclicals such as construction and autos.
Bitcoin stayed closely tied to gold, less so to equities
Throughout August, Bitcoin’s 30-day rolling return correlation with gold remained elevated in a 0.50 to 0.60 range. At the same time, its correlation with the S&P 500 fell to 0.10, while correlations with commodities and REITs fluctuated between 0.20 and -0.10.
Crypto.com product moves and TradFi developments
Crypto.com updates
Crypto.com rolled out Tokenized Stocks, a new app feature that gives eligible users price exposure to U.S. stocks and ETFs through derivative tokens. The service is available to users in the European Economic Area and selected global jurisdictions, offers access to more than 1,500 underlying assets, and starts from $1.
Trading Technologies said it entered a strategic partnership with Crypto.com. Under the deal, direct connectivity to OG.com, Crypto.com’s CFTC-regulated exchange and clearinghouse, will be integrated into the TT trading platform. The integration is scheduled for the fourth quarter of 2026 and will give institutional clients regulated access to prediction markets and digital asset derivatives.
Dubai Duty Free became the first airport retailer in the Middle East to add Crypto.com Pay™ as a regulated digital payment option. Launched on Aug. 5, the service allows eligible UAE residents to use the Crypto.com app at Dubai International Airport, Al Maktoum International Airport and Dubai Duty Free’s online store.
REAL Jet, a subsidiary of REAL SLX, also integrated Crypto.com Pay™. Crypto.com said the company is the first private aviation operator to accept the payment option for private charter bookings, allowing eligible U.S. residents to settle bookings in U.S. dollars through Crypto.com’s digital payment system.
Traditional finance
In the TradFi section, the report cited Bridgewater Associates founder Ray Dalio, who recommended holding gold and “a little bit of Bitcoin” against potential debt, currency and geopolitical risks. Dalio said gold could make up 10% to 15% of a portfolio and framed Bitcoin as a secondary macro hedge. Crypto.com noted that those comments reflected a personal investment view rather than a prediction or formal allocation advice.
Charles Schwab plans to add Solana (SOL), Avalanche (AVAX) and Chainlink (LINK) to its Schwab Crypto platform, expanding its digital asset offering beyond Bitcoin and Ether.
BlackRock launched two tokenized money market funds, BSTBL and BRSRV, to support stablecoin reserves. The products are designed for institutional investors and invest in cash, short-term U.S. Treasuries and overnight repurchase agreements across multiple blockchains to preserve principal stability and liquidity.
Wells Fargo said it plans to launch tokenized deposits for corporate clients in the fall, using blockchain rails for 24/7 real-time cross-border and business-to-business settlement.
Outlook: Bitcoin returned to net accumulation, Ethereum shifted toward quantum readiness
Bitcoin
Crypto.com said its research showed the number of global Bitcoin holders rose 2.5%, from 364 million in December 2025 to 373 million in June 2026.
Bitcoin recovered to near $78,000 in August, supported by improving market flows and renewed investor interest, the report said.
On-chain data showed 30-day apparent demand, defined as an estimate of net spot demand relative to newly issued BTC supply, rebounded sharply from roughly negative 206,000 BTC on July 23 and turned positive for the first time since February 2026, reaching 36,900 BTC on Aug. 22. Crypto.com said that shift suggested spot accumulation had resumed and was once again absorbing new supply.
Ethereum
Ethereum co-founder Vitalik Buterin updated the network roadmap, placing quantum readiness and user privacy among the priorities. Crypto.com said the shift centers on protecting the blockchain from future cryptographic threats while improving base-layer privacy and zero-knowledge scalability.
Developers also proposed EIP-8361, which would end staking rewards once staked ETH reaches 50% of network supply, or about $112 billion. Founders of Aave and ether.fi opposed the proposed “yield burn,” arguing that it would hinder ecosystem growth and create complex tax issues.
Solana
MoneyGram expanded its crypto cash ramps service to Solana, enabling two-way conversion between cash and crypto assets through a single API.
Other projects
Ethena Labs said it plans to integrate stock perpetual basis trades into the reserve collateral strategy for its synthetic dollar USDe, extending its hedging model into equity-linked derivatives to capture non-crypto yield streams.
World Liberty Trust, which the report described as a crypto venture linked to Donald Trump, received preliminary conditional banking approval from the U.S. Office of the Comptroller of the Currency. The entity plans to operate as a national trust bank focused on issuance and custody for its USD1 stablecoin, though the charter does not allow traditional activities such as taking deposits or making loans.
On-chain data showed rapid user migration after a Zcash network upgrade. Ironwood became the largest shielded pool on Zcash, holding about 3.8 million ZEC, valued in the report at nearly $3.2 billion.
The Cardano community approved a treasury allocation of 120 million ADA to improve liquidity for native DeFi protocols.
Harmony executed a full blockchain state rollback to reverse an exploit that had artificially inflated the supply of the ONE token. The team erased about 109,000 transactions and chose not to pursue selective transaction recovery in order to avoid state inconsistencies.
Cosmos Labs recommended an immediate halt for public chains running Cosmos EVM module versions below v0.6.2 or v0.7.2 after a vesting-account logic flaw was exploited across three chains, including Mantra, KiiChain and TAC.
Token unlock calendar
The report also included a token unlock calendar sourced from icodrops.
