Key takeaways:
This blog post recaps Binance Research's latest report on recent developments in the crypto market over the past month.
In September 2024, the cryptocurrency market gained 8%, driven by positive global economic developments. The Federal Reserve’s rate cut to 4.75%-5% helped improve investor sentiment.
Additionally, the People's Bank of China injected 1 trillion yuan into the banking system to address deflationary pressures and boost consumer confidence. These moves supported rallies in the U.S. and Chinese stock markets, which in turn helped fuel gains in the crypto market in October.
Binance Research allows you to benefit from cutting-edge analyses on the processes that shape Web3. By sharing this information, we intend to bring the latest findings from crypto researchers to our community.
We’re taking you through the major Web3 developments that have taken place throughout September 2024 to give you a snapshot of the current state of the ecosystem. We’ll analyze the performance of the crypto, DeFi, and NFT markets before marking our calendars for the major events of October 2024.
Crypto Market Performance in September 2024
In September 2024, the cryptocurrency market saw an 8% increase in total capitalization, driven by positive global economic developments. The Federal Reserve’s decision to cut the federal funds rate by 50 basis points to a range of 4.75% to 5% comforted investors, as did easing concerns about the labor market and inflation approaching the Fed’s 2% target. However, investor reactions were mixed, with hopes of a “soft economic landing” contrasted with fears of a potential slowdown.
On September 27, the People’s Bank of China responded to deflationary pressures and a struggling real estate market by cutting the seven-day repo rate by 20 basis points and reducing the reserve requirement ratio by 50 basis points. This move injected 1 trillion yuan (about $142.5 billion) into the banking system to boost consumer confidence. The favorable macroeconomic environment spurred rallies in major stock markets such as the United States and China, contributing to the cryptocurrency market’s rally in October. However, future economic reports and central bank policies will continue to be closely monitored.
Crypto Market Cap Up 8% Monthly in September
Monthly price performance of the top ten cryptos by capitalization
Source : CoinMarketCap
As of September 30, 2024
Avalanche (AVAX) gained 20.1%, boosted by the Avalanche9000 upgrade and a $40 million developer grant. Dogecoin (DOGE) rose 14.9%, buoyed by Elon Musk’s social media post. Solana (SOL) surged 12% after announcing ecosystem development and partnerships with Franklin Templeton and Citibank. Cardano (ADA) gained 9.3% as the Chang hard fork launched, adding decentralized governance. XRP rose 9.1% after the SEC lawsuit concluded, and progress on stablecoin RLUSD sparked optimism.
TON rose 7.7% on a network upgrade and a new stablecoin swap project in partnership with Curve Finance. Bitcoin (BTC) rose 7.5% amid positive macroeconomic signals from the Federal Reserve. BNB rose 6.9% after the Bohr hard fork, which included four BEPs aimed at improving the network. Finally, Tron (TRX) fell 2.3% but launched a financial crime unit to combat USDT scams. Ethereum (ETH) rose just 2.8% on concerns over inflation risks and ETH sales from the Ethereum Foundation.
Decentralized Finance (DeFi)
In September, DeFi total value locked (TVL) increased by 9.6%, with significant gains across multiple blockchains due to strong market activity. Sui’s TVL increased by 60.7%, driven by interest in its Move-based layer 1 and the gradual rollout of its new consensus engine, Mysticeti, which increases transaction speeds and reduces central processing unit (CPU) requirements for validators. Sui’s DeFi ecosystem was further bolstered by the launch of the AUSD stablecoin, Circle’s USDC integration, and the release of the SuiPlay0X1 gaming device that supports both Sui games and traditional gaming platforms like Steam.
Base’s TVL increased by 44.6% to over $2.2 billion as it attracted substantial inflows into lending, derivatives, and decentralized exchanges. Aerodrome, a native DEX on Base, saw impressive growth and Base’s daily active addresses reached 1.2 million, driven by Coinbase’s smart wallet that provides simplified interaction with dApps.
Sei, a parallelized Layer 1 MVE, saw a 102% increase in TVL, with significant contributions from Yei Finance, a lending protocol, and Silo Stake, a liquid staking protocol. Capital flowed primarily into liquid staking and DEXs, with DragonSwap and JellyVerse also seeing significant gains.
TVL of the best performing blockchains
Source : DeFiLlama
As of September 30, 2024
Tokens non fongibles (NFT)
Monthly NFT Trading Volume
Source : CryptoSlam
As of September 30, 2024
In September, the NFT market continued its downward trajectory that began six months ago with a 21.2% drop in total sales volume to US$302 million, reflecting a challenging environment for NFTs. Indeed, major collections suffered substantial declines in trading activity. Ethereum collections such as CryptoPunks, Bored Ape Yacht Club, and Pudgy Penguins saw trading volumes drop by 13.9%, 38.2%, and 55.3%, respectively, while Bitcoin Puppets’ Ordinals and NodeMonkes collections briefly bucked the trend with slight increases in volume.
Overall, NFT sales volumes declined across major blockchains, with Bitcoin, Ethereum, and Solana down 33.5%, 47.7%, and 41.8%, respectively. However, Blast saw a 30% increase, likely driven by activity on Fantasy.top, a social trading card game. Despite this, overall market interest in NFTs showed signs of waning.
Upcoming Events and Token Unlocks
To help you stay up to date with the latest Web3 news, the Binance Research team has summarized the major blockchain events and upcoming token releases that you shouldn’t miss in the coming month.
Events not to be missed in October 2024
Source : Binance Research, CoinMarketCap
Top US$ Token Unlocks
Source : Token Unlocks, Binance Research
Binance Research
The Binance Research team is committed to producing objective, independent and comprehensive analysis on the crypto world. It publishes informed thoughts on Web3 topics including (but not limited to) the crypto ecosystem, blockchain applications and the latest market news.
This article was just a preview of the full report which contains additional analysis of key charts for the past month. The full report also discusses the continued dominance of wrapped Bitcoin (wBTC) in the market, the issuance rate of ETH, the growth of real-world assets (RWA) on the blockchain, and the decline in crypto-related hacks since 2021.
Read the full version of this report from Binance Research here.
Disclaimer: This material has been prepared by Binance Research and should not be considered a forecast or investment advice, and does not constitute a recommendation, offer, or solicitation to buy or sell any security or cryptocurrency, or to adopt any investment strategy. The terminology used and opinions expressed are intended to promote the understanding and responsible development of the industry and should not be construed as final legal views or the views of Binance. The opinions expressed are as of the date indicated above and are those of the author of the material and are subject to change as circumstances evolve. The information and opinions contained in this material are obtained from proprietary and non-proprietary sources deemed reliable by Binance Research, and their completeness and accuracy are not guaranteed. Accordingly, Binance makes no warranty as to its accuracy or reliability and accepts no liability arising from any other errors or omissions (including liability to others due to negligence). This document may contain “forward-looking” information that is not exclusively historical in nature. Such information may include, but is not limited to, projections and forecasts. There can be no assurance that such projections will prove to be correct. Use of the information contained herein is at the sole discretion of the reader. This document is intended for informational purposes only and does not constitute investment advice, an offer or solicitation to buy or sell any security, cryptocurrency or any investment strategy, nor will any security or cryptocurrency be offered or sold to any person in any jurisdiction in which the offer, solicitation, purchase or sale is unlawful under the laws of such jurisdiction.All investments involve risks.
