The cryptocurrency market is experiencing a downward spiral, exacerbated by recent developments surrounding the collapsed cryptocurrency exchange, FTX. The exchange is on the verge of receiving approval on September 13th to initiate the liquidation of its crypto holdings, according to a tweet from blockchain analysts Whale Alert. This event holds significant weight as FTX still possesses an estimated $3.4 billion worth of crypto assets, even after filing for bankruptcy in November of the previous year.

John Stefanidis, the Chief Executive of Balthazar DAO, a blockchain infrastructure foundation, has pointed out that the recent dip in the value of altcoins can be attributed to the anticipated authorization of FTX's asset liquidation. With a portfolio encompassing billions in cryptocurrency assets, this potential liquidation could have a profound impact on market values. Notably, it may affect cryptocurrencies like Solana, Aptos, Dogecoin, Matic, TON, and XRP. Among these, Toncoin has suffered the most, declining 3.38% to $1.70 in the past 24 hours and losing 9.96% over the past week.

Ripple's XRP also faced significant losses, dropping 2.91% to $0.4857 on the day and 3.54% over the week. The U.S. Securities and Exchange Commission (SEC) has submitted a filing to push for an appeal of its lawsuit against Ripple Labs, challenging the previous ruling by Judge Analisa Torres. In July, Judge Torres ruled that Ripple's XRP sales to institutional investors violated securities laws, while sales on public exchanges to retail investors did not. Ripple Labs has also announced its acquisition of Fortress Trust, a crypto infrastructure startup based in Nevada, granting Ripple a regulatory license in the state.

In global cryptocurrency regulation news, the Group of 20 (G20) meeting, presided over by India, declared its commitment to developing a coordinated global regulatory framework for cryptocurrencies, emphasizing cross-border cooperation and information sharing. This effort aims to address one of the significant challenges faced by the cryptocurrency industry—delayed implementation of regulatory recommendations at the national level.

Caroline Bowler, CEO of Australian digital asset exchange BTC Markets, stressed the importance of prompt action by governments and regulatory authorities to translate international regulatory guidelines into actionable regulations. Delayed implementation could hinder the industry's growth, create uncertainty, and expose investors and consumers to risks.

The total cryptocurrency market capitalization experienced a 0.54% drop to $1.03 trillion, while market volume surged by 36.82% to $20.63 billion.

Additionally, there was a decline in the total volume of non-fungible token (NFT) sales and transactions. The Forkast 500 NFT index fell 0.85% to 2,119 in 24 hours, with a 3.53% drop over the week. NFT sales volume decreased by 4.08% to $8,757,370 in the past 24 hours, accompanied by a more than 10% drop in NFT transactions.

Ethereum led the blockchain rankings by sales volume, experiencing a 2.67% increase to $4.7 million. Mythos and Polygon networks followed in second and third place, respectively. Among collections, Mythos-based DMarket topped the rankings, even though its sales volume fell by 7.76% to $1,012,238 in the past 24 hours. Football NFTs gained popularity with the kickoff of the NFL season, with both DraftKings and NFL All Day seeing significant sales.

In the broader financial landscape, Asian equities displayed mixed performance, with U.S. inflation data eagerly anticipated later in the week. U.S. stock futures, on the other hand, showed strength, with the Dow Jones Industrial Average futures, S&P 500 futures, and Nasdaq 100 Futures all in positive territory.

India's Sensex benchmark index rose by 0.79%, while European bourses, including the STOXX 600 and Germany's DAX 40, gained ground. Investors are eagerly awaiting the outcome of the European Central Bank's policy meeting, which could indicate whether interest rates will be raised further amid economic uncertainties and persistent inflation. ECB policymakers remain divided on this decision, making it a key point of interest for the financial world.