Article reprint source: Vernacular Blockchain
Author: CoinGecko
Translation: Blockchain in Vernacular
After a strong performance in the fourth quarter of 2023, the total cryptocurrency market capitalization continued to rise in the first quarter of 2024, increasing by 64.5% to reach a high of $2.9 trillion on March 13.
In absolute terms, this quarter’s growth (+$1.1 trillion) was almost double that of the previous quarter (+$0.61 trillion). This was largely due to the approval of a spot Bitcoin ETF in the United States in early January, which pushed BTC to a new all-time high in March.
Our comprehensive Q1 2024 Cryptocurrency Industry Report covers everything from the cryptocurrency market landscape to Bitcoin and Ethereum analysis, deep dives into the Decentralized Finance (DeFi) and Non-Fungible Token (NFT) ecosystems, and reviews the performance of centralized exchanges (CEX) and decentralized exchanges (DEX). This article summarizes the key highlights:
7 key highlights from CoinGecko’s Q1 2024 cryptocurrency industry report:
Bitcoin increased by +68.8% in Q1 2024, setting a new all-time high of $73,098.
As of April 2, the assets under management (AUM) of U.S. spot Bitcoin ETFs exceeded $55.1 billion.
The amount of Ethereum re-pledged on EigenLayer reached 4.3 million ETH, a quarterly increase of 36%.
The Solana memecoin saw a significant surge in Q1 2024, with the top ten gaining $8.32 billion in market cap.
In the first quarter of 2024, NFT trading volume in the top ten markets reached $4.7 billion, and Magic Eden now leads in market share.
Spot trading volume on centralized exchanges (CEXs) reached $4.29 trillion in the first quarter of 2024, the highest since the fourth quarter of 2021.
Ethereum’s share of decentralized exchange (DEX) trading volume has fallen below 40%, with other chains gaining more attention.
1. In the first quarter of 2024, Bitcoin increased by +68.8%, reaching an all-time high of $73,098
Bitcoin (BTC) continued to rise in the first quarter of 2024, gaining +68.8% during the period.
Shortly after the US spot Bitcoin ETF was approved, BTC witnessed a -16.0% pullback to a quarterly low of $39,505. However, it then rallied again by +85.0% to a new all-time high of $73,098. It then fell back again by -18.0% before finally recovering to $71,247 by the end of the quarter.
As for trading volume, it climbs across the board in Q1 2024, reaching a daily average of $3.41 billion. This is an increase of +89.8% from $18 billion in Q4 2023.
2. Bitcoin ETFs hold more than $55.1 billion in assets under management (AUM)
As of April 2, 2024, the U.S. spot Bitcoin (BTC) ETF holds a total of more than $55.1 billion in funds. Previously, the U.S. Securities and Exchange Commission (SEC) approved the trading of spot BTC ETFs on January 10.
BlackRock’s IBIT ETF has accumulated more than $17 billion in Bitcoin and is firmly positioned as the second-largest Bitcoin ETF. Its trading volume in the first quarter of 2024 was also the highest among its competitors.
Meanwhile, Grayscale’s converted GBTC ETF had AUM of $21.7 billion on April 2. It experienced a net outflow of $6.9 billion due to early investor profit-taking and higher fees relative to competitors. Still, it was the largest Bitcoin ETF in the first quarter.
3. The amount of Ethereum re-pledged on EigenLayer reached 4.3 million, with a quarterly growth rate of 36%.
In the first quarter of 2024, the re-pledge of Ethereum (ETH) on EigenLayer began to take off, and the total amount of re-pledged ETH increased by 36% to 4.3 million.
Most of the re-collateralized ETH (52.6%) is held by Liquid Restaking Protocols (LRTs), totaling 2.28 million ETH. EtherFi was the largest LRT protocol in Q1, reaching a market share of 21.0%. It grew 2,616% throughout the quarter, holding 910,000 ETH by the end of March.
4. In the first quarter of 2024, Solana Memecoins rose sharply, with the top ten market capitalization increasing by $8.32 billion.
The top 10 Solana (SOL) memecoins grew +801.5%, or $8.32 billion, in Q1 2024. Their combined market cap reached $9.36 billion at the end of the quarter.
Of the top ten Solana memecoins, only Bonk (BONK) and Samoyedcoin (SAMO) exist until Q4 2023. BONK, which has been the number one memecoin on Solana since its launch in December 2022, was overtaken by dogwifhat (WIF) in early March. WIF launched in November 2023. Meanwhile, Book Of Memes (BOME) launched on March 14 and reached a market cap of $1 billion within two days.
In the first quarter of 2024, the top ten NFT markets had a transaction volume of $4.7 billion, with Magic Eden gaining market share.
5. In the first quarter of 2024, the top ten NFT markets had a transaction volume of $4.7 billion
Blur remained the leading NFT marketplace in the first quarter, with over $1.5 billion in trading volume. Its market share reached 27.6% during the same period, up from 24.9% in the fourth quarter of 2023. Meanwhile, Magic Eden surpassed Blur in terms of trading volume in March, thanks to the introduction of the Diamond rewards program and an Ethereum-based marketplace in partnership with Yuga Labs. It had over $760 million in trading volume in March.
OKX dominated Bitcoin NFT trading volume in 2023, but fell from $6.8 billion in December 2023 to $1.8 billion in March 2024, a 73.3% drop in trading volume. Bitcoin NFT trading volume shifted to other platforms such as Magic Eden and UniSat. OKX's market share in March 2024 was 9.5%.
6. In the first quarter of 2024, CEX spot trading volume reached $4.29 trillion, the highest since the fourth quarter of 2021
In the first quarter of 2024, the spot trading volume of the top ten CEXs reached $4.29 trillion. This is an increase of 95.3% from the previous quarter. This is the highest quarterly trading volume recorded by the top ten centralized trading platforms since December 2021.
Binance remains the largest CEX, reaching a market share of 50% at the end of March 2024, gradually regaining its dominance throughout the quarter. During the same period, the number of new listings and project launches on the exchange platform increased significantly. Meanwhile, MEXC, known for its various smaller market capitalization tokens, saw its market share shrink as traders focused on mainstream currencies such as BTC, ETH, and SOL.
7. In the first quarter of 2024, Ethereum's share of DEX trading volume fell below 40% as other chains gained more attention
Ethereum’s share of decentralized exchange (DEX) trading volume fell below 40% in the first quarter of 2024. In February 2024, its market share fell to an all-time low of just 30%. However, despite the decline in market share, in March 2024, Ethereum’s trading volume reached $70 billion due to a surge in overall market trading activity.
On Arbitrum, DEX trading volume boomed in January and February 2024, driven by its STIP incentive program. During the same period, it even surpassed Ethereum's trading volume. However, once the incentive program ended in March, trading volume dropped sharply, and the chain had a market share of only 8% at the end of the month.
Other chains such as Solana and Base were also active in the first quarter, with Memecoins making a significant contribution to transaction volume.
