Solana Leads Altcoin Gains as XRP and DOGE Slide

Crypto Economy Ends Flat After Volatile Week

Crypto markets endured another volatile session this week as bitcoin and major altcoins retreated from multi-week highs before mounting a late recovery. The choppy price action stood in stark contrast to the prior week’s explosive rally, which saw digital assets add over $500 billion in market value in just seven days.

Market data shows that after starting the week with an aggregate market capitalization of close to $2.74 trillion, the crypto economy dropped below $2.7 trillion Aug. 23 before gradually recovering to reach $2.79 trillion by Friday. However, the crypto market cap was down to approximately $2.73 trillion by Saturday afternoon, ending the week virtually flat.

Momentum from the previous week’s U.S. Treasury bond buyback announcement propelled crypto markets into Tuesday, Aug. 25, lifting bitcoin briefly above $81,000 before the rally stalled. After consolidating between $77,000 and $79,000 for two days, bitcoin surged again Thursday to reclaim the $81,000 mark for the second time in a week.

However, in the lead-up to and after Federal Reserve Chair Kevin Warsh’s Jackson Hole address, bitcoin dropped below $77,000. The top cryptocurrency ultimately erased some of those losses, reclaiming $78,000 by Saturday afternoon to post a modest 1% weekly gain. The uptick kept bitcoin on track to finish August with gains exceeding 20%.

Macro Trends and the Scarce-Asset Narrative

Amid this price action, bitcoin’s parallel movement alongside gold has sparked debate over whether institutional capital is shifting toward a broader debasement trade to hedge against fiat currency erosion. However, industry experts view the trend as a structural evolution rather than a simple hedge strategy.

Himanshu Sahay, co-founder and CTO of Arch Lending, noted that while the simultaneous movement in bitcoin and gold is notable, it shouldn’t be automatically classified as an institutional flight from fiat debasement alone.

“What I do think we’re seeing is a broader reassessment of scarce assets,” Sahay said. “Gold has traditionally played that role, while bitcoin increasingly occupies a similar position for investors who are comfortable with a higher-volatility asset. The fact that they’re moving together is important because it suggests bitcoin is increasingly being traded within a broader macro framework rather than purely on crypto-specific narratives. That’s a meaningful evolution for the asset.”

Altcoin Divergence and Market Capitalization

Meanwhile, altcoin performance diverged sharply over the week, marked by double-digit swings on both ends of the spectrum. Solana (SOL) spearheaded the advancers, buoyed by Charles Schwab’s announcement that it will add the digital asset alongside AVAX and LINK to its accounts in the near future. Privacy coin Monero (XMR) also logged impressive gains, climbing from $425 to cap the week at $463 on Saturday. Among large-cap digital assets, RAIN delivered the week’s standout performance with a 24% surge.

On the downside, XRP—one of the previous week’s top performers—fell nearly 7%. Dogecoin dropped 7.2%, while ADA, XLM and BCH all fell more than 10%. Despite the mixed performance, the combined market capitalization for altcoins rose just over 4%, from $1.13 trillion at the start of the week to $1.18 trillion Aug. 29.