Binance Research: Key Trends in Crypto – July 2024
Main Takeaways
This blog recaps the recent Binance Research report discussing key developments in crypto markets over the past month.
In June, the crypto market experienced a significant downward momentum, declining 11.4%.
In line with the market downturn, total DeFi TVL experienced an 8.7% decline in TVL in June. The NFT market experienced an extended downturn in June, recording a total sales volume of US$46M, a 26.2% decrease from May.
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Today’s blog explores key Web3 developments in June 2024 to provide an overview of the ecosystem’s current state. We analyze the performance of crypto, DeFi, and NFT markets before previewing major events to look out for in July 2024.
Crypto Market Performance in June 2024
Despite a strong start to the month of June, the market encountered major sell-offs and large-scale liquidation events later on. Drivers included the impending Mt. Gox repayment distributions scheduled for July for over 140,000 BTC. Notably, the U.S. and German governments were observed moving large amounts of BTC to centralized exchanges, adding to the negative market sentiment. On a positive note, asset managers VanEck and ARK 21Shares filed for the first Solana ETFs in the U.S., providing optimism amid the challenging market.
Crypto market capitalization decreased by 11.4% in June
Source: CoinMarketCap of June 30, 2024
Monthly price performance of the top 10 coins by market capitalization
Source: CoinMarketCap of June 30, 2024
Amid the market-wide sell-off, most of the top ten coins by market capitalization ended the month in the red. TON was the only one that significantly outperformed the market, hitting an all-time high of US$8.24 and closing the month with a 17.5% gain. Additionally, TON’s DeFi TVL surged to US$700M, largely attributed to “The Open League,” a long-term incentive program for TON users, teams, and traders.
BNB retraced by 18.8%, closing the month in red. XRP experienced similar volatility, closing the month with a 9.0% decline. BTC experienced a 10.9% month-on-month decline, largely influenced by the Mt. Gox announcement. ETH faced a 10.0% MoM decline in June, despite positive developments in the SEC's investigation into Consensys and Ethereum 2.0, along with the progress of Ethereum ETF trading approval. Later in the month, the SEC launched another lawsuit against Consensys’s MetaMask and its staking platforms, Lido and Rocket Pool. ADA and SOL marked a 14.0% and 16.2% MoM decline, respectively. However, towards the end of June, SOL exhibited a notable rally attributed to the introduction of the first spot Solana ETFs in the United States by digital asset managers VanEck and ARK 21Shares. AVAX recorded a significant decline of 23.0%, while SHIB and DOGE each retraced by 27.7% and 34.8%. Memecoins bore the initial brunt of the market downturn, underperforming compared to the broader market.
Decentralized Finance (DeFi)
In line with the market downturn, total DeFi TVL experienced an 8.7% decline in TVL in June. Notable gainers for the month include Bitcoin layer-2 networks Bsquared and CORE, which recorded impressive gains in TVL of 332% and 300% respectively. TON also continued its remarkable growth trajectory with a 109% month-on-month increase in TVL, hitting another all-time high of US$685.9M, thanks to “The Open League” success. June saw the long-awaited release of airdrops and token generation events from several notable projects, including LayerZero, zkSync, Blast, and Eigenlayer (Phase 2).
TVL share of top blockchains
Source: DeFiLlamaAs of June 30, 2024
Non-Fungible Tokens (NFT)
Monthly NFT trading volume
Source: CryptoSlam As of June 30, 2024
The NFT market experienced a continued negative trend in June, recording a total sales volume of US$46M, a 26.2% decrease from May. DMarket, an in-game item marketplace on Mythos, led with the highest monthly sales volume at US$18.9M, followed closely by CryptoPunks with US$16.1M. Top Ordinal collections such as Bitcoin Puppets and NodeMonkes experienced a sharp decline in sales volume, sliding 40.6% and 41.0% respectively. Bored Ape Yacht Club saw a slight decrease in monthly sales volume, while Pudgy Penguins outperformed the market by recording a 68.9% upsurge.
Across the top chains, NFT sales volumes decreased considerably. Bitcoin and Ethereum saw a 48.2% and 50.2% downturn respectively, indicating the dwindling early hype over Bitcoin’s NFT. Solana’s monthly sales volume fell 40.9% and Blast faced a massive 81.0% plunge after the conclusion of its airdrop campaign.
Upcoming Events and Token Unlocks
To help users stay updated on the latest Web3 news, the Binance Research team has summarized notable events and token unlocks for the month to come. Keep an eye on these upcoming developments in the blockchain space.
Notable events in July 2024
Source: Binance Research, CoinMarketCap
Largest token unlocks in US$ terms
Source: Token Unlocks, Binance Research
Binance Research
The Binance Research team is committed to delivering objective, independent, and comprehensive analyses of the crypto space. We publish insightful takes on Web3 topics, including but not limited to the crypto ecosystem, blockchain applications, and the latest market developments. This article is only a snapshot of the full report, which contains further analyses of the most important charts from the past month. The full report also looks into the trend of Bitcoin miners now consistently making up Bitcoin net sellers, especially after Bitcoin halving last April, TON’s record-breaking performance, BNB’s continued strength, and the emergence of competition in the staking landscape with new entrants such as Karak and Symbiotic challenging EigenLayer’s dominance.
Read the full version of this Binance Research report here.
Further Reading
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