Time to look at this month's market insights!
Our research team analyzed the state of the crypto market and provided insights on Bitcoin ETF inflows, Ethereum's Dencun upgrade, Solana's DEX volumes, and more.
Check out the full report here.
The crypto market saw a modest uptrend in March, ending the month with a 16% increase in total market capitalization. Notably, Bitcoin reached an all-time high, touching US$73,000 twice before experiencing a sharp retracement, with the lowest point at US$60,000. In the latter half of March, capital inflows into spot BTC ETFs slowed, especially during the week of March 18. However, with over US$12B in net inflows since their inception, periodic outflows don’t necessarily indicate a market reversal; longer-term observations are needed to establish trends.
Average daily net flows for the spot Bitcoin ETFs were US$98M in January, US$287M in February, and US$231M in March. March also saw two of the highest inflow days recorded so far, with over US$1B and US$680M in inflows on March 12 and 13. This has helped bring total net flows to over US$12B. This has also coincided with Bitcoin breaking its all-time high and trading as high as US$73K earlier in March. With the Bitcoin halving coming up in April, it will be interesting to see how ETF flows and prices evolve from here.
Ethereum’s Dencun upgrade went live on March 13. The introduction of EIP-4844 (a.k.a. proto-danksharding) has resulted in a dramatic decrease in transaction fees on layer-2s (“L2s”). Median L2 gas fees have fallen by as much as 96.8% post-Dencun.
Trading volumes on Solana’s Decentralized Exchanges (“DEXes”) increased by more than 224% month-over-month (“MoM”), at times even outpacing Ethereum to become the highest-volume network on several days in March. The significant uptick in activity has been driven by the rising popularity of meme coins on the network.
Stablecoin yield opportunities have been on the rise. In response, MakerDAO increased the Dai Savings Rate (“DSR”) from 5% to a high of 15%, cushioning against potential DAI demand shocks. Following the rate hike, DAI deposits have grown past US$1.6B, reflecting a 39.6% increase and reversing much of their previous decline.
Read the full report here.