During March, the cryptocurrency market experienced a modest growth, with total market capitalization increasing by 16% as the month ended. Bitcoin reached an all-time high of US$73,000 twice before experiencing a sharp decline, with a low of US$60,000. Inflows into the spot BTC ETF slowed in the second half of the month, but with total net flows above $12 billion since inception, the market maintained a positive trend.
Meanwhile, average daily net flows for spot Bitcoin ETFs increased from $98 million in January to $231 million in March. The two days with the highest flows were the 12 and 13 months Three helped total net flows surpass US$12 billion. The development of ETFs and the upcoming Bitcoin halving in April will be points of interest in the near term.
Ethereum's Dencun upgrade was rolled out on March 13, which significantly reduces transaction fees on layer-2s ("L2s"). Average L2 gas fees decreased by 96.8% after Dencun.
Trading volume on Solana's decentralized exchanges ("DEXes") increased more than 224% month over month, at times outpacing Ethereum to become the network's highest volume for several days in March . This is driven by the growing popularity of meme coins online.
Stablecoin profit opportunities are increasing. MakerDAO has increased its Dai Savings Rate (“DSR”) from 5% to a high of 15%, buffering against potential DAI demand shocks. DAI deposits rose past $1.6 billion, reflecting a 39.6% increase and reversing much of their previous decline.
