August Surge: Ethena, BIO Protocol, and API3 Lead Altcoin Accumulation Wave

Key Takeaways

• Ethena (ENA) exchange reserves dropped by 150 million as a $260 million buyback program, $500 million revenue milestone, and record USDe supply fueled investor demand.

• BIO Protocol (BIO) surged 265% with reserves falling 22% following a new staking program, Arthur Hayes’ $1 million backing, and the launch of its BioXP rewards system.

• API3 gained 130% in value as a fresh Upbit listing and renewed interest in the oracle sector drove 9 million token withdrawals, cutting reserves to 17.19 million.

Introduction

By the third week of August, several major altcoins experienced a sharp decline in exchange reserves, signaling a shift in investor behavior toward accumulation and long-term holding outside centralized platforms. This trend comes as the broader crypto market remains selective in its “altcoin season,” with only certain tokens standing out due to strong fundamentals, unique incentives, or strategic developments.

So, which cryptocurrencies are driving this surge in accumulation, and what underlying catalysts are making investors increasingly optimistic?

Ethena (ENA)

Data from Santiment revealed that Ethena (ENA) exchange reserves fell significantly during the third week of August — dropping from 1.3 billion to 1.15 billion tokens. This means over 150 million ENA were moved off centralized exchanges.

During this same period, ENA’s price rose 30% in August, moving from $0.51 to $0.65.

The reserve decline was closely tied to the Ethena Foundation’s announcement of a massive $260 million buyback program, allocating around $5 million daily to repurchase ENA from the market. Analysts from Tokenomist estimate the initiative could absorb 3.48% of the circulating supply, helping reduce sell pressure and improve investor confidence.

Further bolstering optimism, Ethena crossed two significant milestones in August: revenue exceeding $500 million, and USDe supply reaching an all-time high of $11.7 billion.

These combined factors drove strong accumulation, reflected in the sharp decline of exchange reserves.

BIO Protocol (BIO)

BIO Protocol, a leader in the DeSci (Decentralized Science) sector, delivered one of August’s standout performances, recording gains of more than 265%.

As prices soared, exchange reserves simultaneously dropped. From early August to late August, reserves fell from 380 million to 294 million BIO, marking a 22% decline.

The third week of August alone witnessed an extraordinary movement, as investors withdrew 42 million BIO, pushing reserves to their lowest level of the year.

Several catalysts fueled this wave of accumulation. First, BIO introduced a staking program in early August that successfully locked up more than 25 million tokens. Second, renowned investor Arthur Hayes injected $1 million into BIO, a development that reignited both retail and institutional interest.

Additionally, the team unveiled an innovative BioXP rewards system, where users earn rewards by promoting the project on social media, unlocking access to the first BioAgent sales.

Together, these drivers enhanced BIO’s visibility, attracted new participants, and accelerated accumulation trends throughout the month.

API3

API3, an oracle-focused project, re-entered the spotlight in August as its price surged more than 130%, supported by one of the steepest declines in exchange reserves this year.

The pivotal week was the third week of August, during which over 9 million API3 tokens were withdrawn from exchanges, leaving just 17.19 million tokens in exchange reserves — the lowest level recorded this year.

The immediate catalyst was the Upbit exchange listing, which propelled API3’s price by more than 120% almost instantly. Beyond that, investor interest in the oracle sector gained momentum following Chainlink’s (LINK) impressive rally. Data from Artemis confirmed that oracles were the best-performing market sector in August, further boosting demand for API3.

As a result, API3’s price has maintained strong stability, trading consistently above $1.50.

Conclusion

The third week of August underscored a selective but powerful accumulation phase across the altcoin market. Ethena (ENA) attracted investors through an ambitious buyback program and record-breaking financial milestones. BIO Protocol (BIO) capitalized on DeSci enthusiasm with staking incentives, community-driven rewards, and high-profile backing.

Meanwhile, API3 surged on the back of an influential exchange listing and renewed sector-wide momentum in oracles.

While a broad-based altcoin season has yet to materialize, these three tokens demonstrate that targeted catalysts — from tokenomics initiatives to sector-driven rallies — can ignite substantial accumulation and investor confidence even in a cautious market environment.

Frequently Asked Questions

Why is a drop in exchange reserves significant for altcoins?

A decline in exchange reserves usually indicates that investors are withdrawing tokens to hold long-term in private wallets or to stake, reducing available supply on exchanges. This often signals increased confidence and potential bullish momentum.

How does Ethena’s buyback program affect its price?

Ethena’s $260 million buyback program, which repurchases ENA at around $5 million per day, reduces circulating supply and alleviates selling pressure. This absorption can support price stability and long-term growth.

What role did Arthur Hayes play in BIO Protocol’s surge?

Arthur Hayes, a well-known crypto investor, contributed $1 million to BIO Protocol in August. His involvement not only provided financial backing but also boosted credibility and market attention toward the project.

Why did API3 gain so much after the Upbit listing?

Listings on major exchanges like Upbit increase liquidity, accessibility, and global exposure. For API3, the listing coincided with rising interest in oracle projects, amplifying demand and driving its 130% price surge.

Does this mean a full altcoin season has started?

Not yet. The broader altcoin market remains selective, with gains concentrated in projects that offer unique catalysts. A full altcoin season typically requires widespread rallies across multiple tokens, which has not yet occurred.