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This blog previews Binance Research's recent report discussing key developments in crypto markets over the past month.
April was a difficult month for cryptocurrencies, with the total market capitalization decreasing 11.3% due to the slowdown in momentum from the previous months.
The DeFi and NFT markets also fell, recording a 0.7% drop in TVL and a 21% drop in monthly trading volume, respectively.
Thanks to Binance Research, you can leverage world-class analytics into the processes that shape Web3. By sharing this information, we hope to provide our community with the latest knowledge on research surrounding cryptocurrencies.
Todayâs blog explores key Web3 developments in April 2024 to provide a snapshot of the current state of the crypto ecosystem. We look at the performance of crypto, DeFi, and NFT markets before presenting the key events to watch in May 2024.
Cryptocurrency market performance in April 2024
April was a tough month for cryptocurrencies, with total market capitalization declining by 11.3% as the momentum built up in previous months slowed. Some of the major contributors to this reversal included shifting rate cut expectations, geopolitical risks, and a slowdown in spot bitcoin ETF inflows.
However, there were also positive developments throughout the month. Six different crypto-based ETFs began trading in Hong Kong on April 30 following regulatory approval. Additionally, the total supply of dollar-pegged stablecoins reached its highest point in two years. Stablecoin supplies, USDT and USDC, have been steadily increasing, indicating sustained capital inflows into the crypto market.
Monthly change in crypto market capitalization (%)
Monthly price performance of top 10 coins by market capitalization
Source: CoinMarketCap (April 30, 2024)
Most of the top ten coins by market cap ended the month in negative territory. TON and BNB managed to show relative resilience with a gain of 1.0% and a slight decrease of 1.4%, respectively. TONâs outperformance can be attributed to the traction its ecosystem has been gaining recently, reaching all-time highs in April in terms of monthly active addresses and total value locked (TVL) on the network. BNB continued to be one of the best performers in recent months.
ETH and BTC both saw declines of around 8% in April. However, the approval of three BTC spot ETFs and three ETH spot ETFs in Hong Kong brought a positive milestone for the two leading cryptocurrencies. XRP and SHIB saw the biggest price declines, dropping 17.1% and 19.2% over the month, respectively. DOGE, ADA, SOL, and AVAX demonstrated the weakest performances among the leading group, falling around 30% by the end of the month.
Decentralized Finance (DeFi)
In line with broader market trends, April was a quiet month for DeFi, which saw a 0.7% decline in TVL. Among the top ten blockchains, Merlin Chain, a native layer-2 solution for Bitcoin, was the fastest-growing blockchain, with a 1000% monthly gain and a TVL of over $1 billion. In terms of protocols, the top performers included Pendle and Hyperliquid. Pendleâs TVL reached $5 billion and its cumulative trading volume surpassed $15 billion. Hyperliquidâs TVL surpassed $435 million, outperforming Aptos, Near, and Cardano.
TVL share of major blockchains
Source: DeFiLlama (April 30, 2024)
Non-fungible tokens (NFTs)
Monthly NFT Trading Volume
The NFT market also fell in April, recording a 21% monthly decrease in total sales volume to $1.11 billion. Bitcoin collectibles continued to steal the spotlight, with four of the top five collections by sales volume for the month being Bitcoin-based. These collections (Ordinals, PUPS, WZRD, and NodeMonkes) collectively recorded a sales volume of $423 million. Sentiment towards Ethereum collectibles remained relatively weak.
In terms of NFT sales volumes across major blockchains, Bitcoin led the way with $567 million, followed by Ethereum at $241 million and Solana at $153 million. In percentage terms, Bitcoin saw a 5% drop in total volume, while Ethereum and Solana saw significant drops of close to or greater than 50%. These numbers suggest that collectors have recently shifted their focus to Bitcoin-based offerings.
next events
To help users stay up to date with the latest Web3 news, the Binance Research team has summarized the notable events and token unlocks for the upcoming month. Keep an eye out for upcoming developments in the blockchain space.
Notable events in April 2024
Fonte: Binance Research
Largest token unlocks in US$
Fonte: Token Unlocks, Binance Research
Binance Research
The Binance Research team is committed to providing objective, independent, and comprehensive analysis of the crypto space. We publish insightful takes on Web3 topics including, but not limited to, the cryptocurrency ecosystem, blockchain applications, and the latest market developments.
This article is just an overview of the full report, which contains analysis of the most important market charts from the past month. It also dives deeper into recent developments surrounding the Runes protocol, liquid restocking, stablecoin supply, and the TON ecosystem.
Read the full version of this Binance Research report here
Further reading
General Disclosure: This material is prepared by Binance Research and should not be considered as a forecast or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities, bonds or cryptocurrencies, or to adopt any investment strategy. The use of terminology and opinions expressed are intended to promote the understanding and responsible development of the industry and should not be construed as the definitive legal opinion or opinion of Binance. The opinions expressed are as of the date indicated above and are the opinions of the writer, which may change as conditions change. The information and opinions contained in this material are derived from various proprietary and non-proprietary sources believed by Binance Research to be reliable, are not necessarily all-inclusive, and their accuracy cannot be guaranteed. As such, there is no guarantee of accuracy or reliability, and Binance is not responsible in any way for errors and omissions (including the liability of any person by reason of negligence). This material may contain âforward-lookingâ information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. The decision to rely on the information contained in this material is the sole responsibility of the reader. This material is for informational purposes only and does not constitute investment advice, nor an offer or solicitation to buy or sell any securities, bonds, cryptocurrencies or any investment strategy. No securities or cryptocurrencies shall be offered or sold to any person in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the laws of that jurisdiction. Investing involves risk.
