Source: Binance; Translated by: Baishui, Golden Finance
Summary
This article reviews recent Binance Research reports and discusses the major developments in the crypto markets over the past month;
In June, the crypto market showed a clear downward trend, with a drop of 11.4%;
Consistent with the market downturn, total DeFi locked value fell 8.7% in June. The NFT market experienced a long downturn in June, with total sales of $46 million, down 26.2% from May.
This article explores the development of Web3 in June 2024 to provide an overview of the current state of the ecosystem. We analyze the performance of the cryptocurrency, DeFi, and NFT markets before previewing major events to watch out for in July 2024.
Crypto Market Performance in June 2024
Despite a strong start to June, the market has seen significant sell-offs and large liquidation events, primarily due to a number of key factors. These include Mt. Gox’s repayment of over 140,000 BTC scheduled for July. Notably, the US and German governments were observed to transfer large amounts of BTC to centralized exchanges, which exacerbated the negative sentiment in the market. On a positive note, asset management firms VanEck and ARK 21Shares applied for the first Solana ETFs in the US, bringing optimism to the challenging market.
Cryptocurrency market value fell 11.4% in June
Source: CoinMarketCap, as of June 30, 2024
Monthly price performance of the top 10 coins by market cap
Source: CoinMarketCap, as of June 30, 2024
Amid a broad market sell-off, most of the top ten tokens by market cap ended the month in the red. TON was the only token to significantly outperform the market, hitting a new all-time high (“ATH”) of $8.24, up 17.5% at the end of the month. Additionally, TON’s DeFi TVL surged to $700 million, largely due to “The Open League,” a long-term incentive program for TON users, teams, and traders.
BNB retraced 18.8% to end the month in the red. XRP experienced similar volatility, ending the month down 9.0%. BTC fell 10.9% month-on-month, mainly affected by the Mt. Gox announcement. ETH fell 10.0% month-on-month in June despite the closure of the U.S. Securities and Exchange Commission’s investigations into Consensys and Ethereum 2.0, as well as progress on Ethereum ETF trading approval. Later that month, the SEC filed another lawsuit against Consensys’ MetaMask and its staking platforms Lido and Rocket Pool. ADA and SOL fell 14.0% and 16.2% sequentially, respectively. However, at the end of June, SOL saw a significant rebound as digital asset managers VanEck and ARK 21Shares launched the first Solana spot ETF in the United States. AVAX fell sharply 23.0%, while SHIB and DOGE retreated 27.7% and 34.8% respectively. Memecoins initially bore the brunt of the market downturn, lagging the broader market.
Decentralized Finance (DeFi)
Total DeFi TVL fell 8.7% in June as the market tanked. Notable winners this month include Bitcoin Layer 2 networks Bsquared and CORE, which saw TVL grow 332% and 300%, respectively. TON also continued its impressive growth trajectory, boosted by the success of “The Open League,” with TVL growing 109% month-over-month to a new all-time high of $685.9 million. In June, several notable projects released long-awaited airdrops and token generation events, including LayerZero, zkSync, Blast, and Eigenlayer (Phase 2).
TVL share of top blockchains
Data source: DeFiLlama, as of June 30, 2024
Non-fungible tokens (NFTs)
Monthly NFT Trading Volume
Source: CryptoSlam, as of June 30, 2024
The NFT market continued its negative growth trend in June, with total sales of $46 million, down 26.2% from May. DMarket, an in-game item trading market on Mythos, topped the list with monthly sales of $18.9 million, followed by CryptoPunks with sales of $16.1 million. Top Ordinal series such as Bitcoin Puppets and NodeMonkes saw a sharp drop in sales, down 40.6% and 41.0%, respectively. Bored Ape Yacht Club saw a slight drop in monthly sales, while Pudgy Penguins outperformed the market, up 68.9%.
Among the top blockchains, NFT sales have dropped significantly. Bitcoin and Ethereum fell 48.2% and 50.2% respectively, indicating that the early hype about Bitcoin NFTs is gradually fading. After the airdrop event, Solana's monthly sales fell 40.9%, and Blast's monthly sales plummeted 81.0%.
Upcoming Events and Token Unlocks
To help users stay up to date with the latest Web3 news, the Binance Research team has summarized the major events and token unlocks for the coming month. Stay tuned for these upcoming developments in the blockchain space.
Important events in July 2024
Source: Binance Research, CoinMarketCap
Maximum token unlock in USD
Source: Token Unlocks, Binance Research
