Key points
In this blog, you can view an excerpt from a recent Binance Research report that discusses key developments in the cryptocurrency markets over the past month.
May was a month of cryptocurrency recovery as the market rebounded with an 8.6% increase in total market capitalization.
The DeFi market also reflected these positive trends, with its TVL increasing by 21.7% in the month. However, the NFT market showed negative dynamics, registering a decrease of 41% in total sales to $0.63 billion.
With Binance Research you can take advantage of industry analysis of the processes shaping the Web3. We share this information to provide our community with the latest in crypto research.
Today's blog looks at key events in the Web3 world in May 2024 to highlight the current state of the ecosystem. We analyze the crypto, DeFi and NFT markets, as well as the main events to watch out for in June 2024.
Crypto market indicators in May 2024
After a somewhat worrisome April, cryptocurrency markets rebounded in May, closing with an 8.6% increase in total market capitalization. The preliminary approval of spot ETH ETFs by the US Securities and Exchange Commission (SEC) and the passage of the Financial Innovation and Technology 21st Century Act (FIT21) by the US House of Representatives were the two main regulatory developments that fueled this market rally. These developments took place during political campaigns in the US, when various candidates discussed their views on cryptocurrencies. Finally, spot BTC ETFs had net inflows for 14 consecutive days, adding to the overall positive market momentum.
Change in the market capitalization of cryptocurrencies every month (%)
Monthly price dynamics of the 10 largest coins by market capitalization
Source: CoinMarketCap (May 31, 2024)
Most of the top 10 coins by market capitalization ended the month with higher prices. Solana had the strongest performance in May, rising 33.9% as its DeFi TVL rose 33.4% to US$4.84 billion and the network's monthly DEX trading volume reached US$31.2 billion . This was largely due to the strong performance of memcoins on Solana such as BONK and WIF.
ETH started a strong rally following the SEC's surprise approval of spot ETH ETFs, and the asset is up 26.8% for the month. The approval took place on May 23 and marked a notable victory for the industry, pushing ether high and sparking a market-wide rally. TON, the third best performing asset for the month, saw a 24.2% increase in price as its TVL in DeFi continued to climb to all-time highs, rising 227.8% for the month to US$326 million.
Following ETH's rally, ERC-20 memcoins also surged in price, with DOGE and SHIB up 19.9% and 11.4% respectively for the month. Meanwhile, AVAX was up 12.4% and BTC was up 12.2% as spot BTC ETFs saw net inflows for 14 consecutive days. In line with general 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 revival, TVL in DeFi recorded growth in May, with a monthly gain of 21.7%. Among the top ten blockchains, Merlin, TON, and Solana were the biggest gainers, posting monthly gains of 183%, 135%, and 36%, respectively. Several new protocols, namely Pendle Finance, Athena, Morpho, and Polymarket, covering various DeFi breakout markets such as interest rate derivatives, modular lending, for-profit stablecoins, and forecasts, experienced a marked increase in May, reaching new highs in TVL.
Share of TVL of the largest blockchains
Non-Fungible Tokens (NFT)
Monthly NFT trading volume
In contrast to broader industry dynamics, the NFT market saw a significant decline in May. Total sales were $0.63 billion, down 41% from April. While Ordinals remained the top selling collection, it was down 71% for the month. Other major collections, including NodeMonkes, Crypto Punks, and Bored Ape Yacht Club, also experienced significant sales declines.
This poor performance was seen in the leading networks, and NFT sales fell significantly. Specifically, Bitcoin experienced a sharp drop from $602 million to $194 million in May, a 68% drop. However, there were some positives: Fantasy Top, a collectible card game on Blast released on May 1, managed to buck the negative trend.
Future events
To help users stay up to date with the latest Web3 news, the Binance Research team has prepared an overview of the most important events and token unlock announcements for the coming month. Stay tuned for upcoming blockchain developments.
Key events of June 2024
Source: Binance Research
Largest token unlocks in dollar terms
Source: 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 in-depth articles on Web3 topics, including the crypto ecosystem, blockchain applications, and the latest market news.
This article contains only a fragment of the full report, which provides a more detailed analysis of the most important market charts for the past month. It also details recent events related to Grayscale's ETHE discount, Solana's daily fees versus Ethereum, tokenization of real assets, and the resurgence of prediction markets for the US presidential campaigns.
You can read the full version of this Binance Research report here
Related articles
Follow us on Binance Ukraine social networks:
Telegram channel | Telegram group | TikTok | X (Twitter) | Facebook | Instagram | YouTube
Disclaimer: This material was prepared by Binance Research and is not intended to be used as a forecast or investment advice, nor is it a recommendation, offer or solicitation to buy or sell securities or cryptocurrencies or to employ any investment strategy. The use of terminology and the views expressed are intended to promote understanding and responsible development of the sector and should not be construed as definitive legal views or the views of Binance. The opinions expressed are relevant as of the above date and are the opinions of the author; they can change as environmental conditions change. The information and opinions contained in this material are derived from proprietary and non-proprietary sources that Binance Research believes to be reliable, are not necessarily exhaustive, and are not guaranteed to be accurate. Therefore, Binance makes no guarantees as to accuracy or reliability, and assumes no liability arising in any other way from errors or omissions (including liability to any person due to negligence). This material may contain forward-looking information that is not strictly historical. Such information may contain, among other things, forecasts and assumptions. There is no guarantee that these predictions will come true. Reliance on the information in this material is at the sole discretion of the reader. This material is for informational purposes only and does not constitute investment advice or an offer, nor a solicitation to buy or sell any security, cryptocurrency or investment strategy, nor may any security or cryptocurrency be offered or sold to any person in any jurisdiction in which the offer, solicitation , buying or selling is illegal under the laws of such jurisdiction. Investments involve risks.
