Main topics of the post
This blog previews Binance Research's recent report discussing key developments in crypto markets over the past month.
May was a month of resurgence for cryptocurrencies, with the market recovering to achieve an 8.6% increase in total market capitalization.
The DeFi market also reflected these positive trends, with its TVL rising 21.7% for the month. However, the NFT market showed negative dynamics, recording a 41% drop in total sales volume to $0.63 billion.
Thanks to Binance Research, you can leverage world-class analytics into the processes that shape Web3. By sharing this information, we hope to provide our community with the latest knowledge on research surrounding cryptocurrencies.
Today's blog explores key Web3 developments in May 2024 to provide an overview of the current state of the crypto ecosystem. We analyze the performance of the crypto, DeFi and NFT markets before showing you the key events to watch in June 2024.
Cryptocurrency Market Performance in May 2023
After a somewhat tumultuous April, cryptocurrency markets recovered in May, closing with an 8.6% increase in total market capitalization. The preliminary approval of ETH spot ETFs by the US Securities and Exchange Commission (SEC) and the approval of the Financial Innovation and Technology for the "21st Century Act (FIT21)" by the US House of Representatives were two major regulatory developments that contributed to this recovery across the market. These events occurred as US political campaigns unfolded, with several candidates discussing their views on cryptocurrencies. Finally, BTC spot ETFs have seen 14 consecutive days of net inflows, adding to the market's overall positive performance.
Monthly change in crypto market capitalization (%)
Monthly Price Performance of Top 10 Coins by Market Cap
Source: CoinMarketCap (May 31, 2024)
All top 10 coins by market capitalization ended the month with price increases. Solana was the top performer in May, with its price rising 33.9% as its DeFi TVL increased 33.4% to $4.84 billion, while its monthly blockchain DEX trading volumes reached $31. 2 billion. This was largely driven by strong performance of memecoins on Solana such as BONK and WIF.
ETH began a strong rally that led to the unexpected SEC approval of ETH spot ETFs, rising 26.8% for the month. The approval took place on May 23 and marked a notable victory for the sector, reinforcing Ether's strong performance and triggering a market-wide rally. TON, the third best performer of the month, saw a 24.2% price increase, while its DeFi TVL continued to hit all-time highs, rising 227.8% for the month to reach $326 million.
Following ETH's rise, ERC-20 memecoins also increased in price, with DOGE and SHIB rising 19.9% and 11.4% in the month, respectively. Meanwhile, AVAX rose 12.4% and BTC rose 12.2%, with spot BTC ETFs seeing 14 days of consecutive net inflows. In line with broader market trends, XRP, BNB, and ADA saw more modest gains of 6.1%, 5.6%, and 4.7%, respectively.
Decentralized finance (DeFi)
Reflecting the broader market recovery, DeFi TVL saw an increase in May, with a monthly gain of 21.7%. Among the top ten blockchains, notable gainers included Merlin, TON, and Solana, recording monthly gains of 183%, 135%, and 36%, respectively. Several emerging protocol projects – namely Pendle Finance, Athena, Morpho, and Polymarket – cover several so-called "innovative DeFi markets", such as interest rate derivatives, modular loans, stablecoins which generate income and forecasts, experienced remarkable growth in May, surpassing new highs in TVL.
TVL share of the main blockchains
Non-fungible tokens (NFTs)
NFT monthly trading volume
In contrast to broader industry dynamics, the NFT market saw a significant decline in May. Total sales volume of $0.63 billion marked a 41% drop from April. Although Ordinals remained the top collection by sales volume, there was a 71% drop for the month. Other major collections, including NodeMonkes, Crypto Punks, and Bored Ape Yacht Club, also saw significant drops in sales volumes.
This underperformance was observed across major blockchains, with NFT sales volumes dropping considerably. In particular, Bitcoin experienced a dramatic drop from $602 million to $194 million in May, marking a 68% decline. However, there were some bright spots, with Fantasy Top, a trading card game on Blast, launching on May 1st and managing to defy the negative trend.
next events
To help users stay up to date with the latest Web3 news, the Binance Research team has summarized next month's notable events and token unlocks. Keep an eye on upcoming developments in the blockchain space.
Notable Events in June 2024
Fonte: Binance Research
Biggest USD Token Unlocks
Fonte: Token Unlocks, Binance Research
Binance Research
The Binance Research team is committed to providing objective, independent, and comprehensive analysis of the crypto space. We publish insightful takes on Web3 topics, including but not limited to the cryptocurrency ecosystem, blockchain applications, and the latest market developments.
This article is just an overview of the full report, which contains analysis of the most important market charts from the last month. He also delves into recent developments around Grayscale's ETHE discount, Solana's daily fees compared to Ethereum, the tokenization of real-world assets, and the resurgence of prediction markets in the wake of the US presidential campaigns.
Read the full version of this Binance Research report here
Further reading
General Disclosure: This material is prepared by Binance Research and should not be considered a prediction or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities, bonds or cryptocurrencies, or adopt any strategy of investment. The use of terminology and opinions expressed are intended to promote understanding and responsible development of the industry and should not be construed as definitive legal opinions or those of Binance. The opinions expressed are as of the date indicated above and are the opinions of the writer, which may change as conditions vary. The information and opinions contained in this material are derived from different proprietary and non-proprietary sources considered reliable by Binance Research, are not necessarily comprehensive, and their accuracy cannot be guaranteed. As such, there is no guarantee of accuracy or reliability and Binance is not responsible in any way for errors and omissions (including the liability of any person due to negligence). This material may contain "forward-looking" information that is not purely historical in nature. This information may include, among other things, projections and forecasts. There is no guarantee that any predictions made will occur. The decision to rely on the information contained in this material is the sole responsibility of the reader. This material is for informational purposes only and does not constitute investment advice, nor an offer or solicitation to buy or sell any securities, bonds, cryptocurrencies or any investment strategy. No security or cryptocurrency will be offered or sold to any person in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the laws of that jurisdiction. Investments involve risks.
