Binance Research: Key Trends in Crypto – March 2024

2024-03-12

Main Takeaways

  • This blog previews the recent Binance Research report discussing key developments in crypto markets over the past month.

  • February 2024 was a very strong month for crypto, with total market capitalization increasing 40% as BTC’s price inched closer to its all-time high amid sustained inflows from spot BTC ETFs.

  • The DeFi market also posted robust performance numbers, with TVL increasing 50%. Gains in the NFT market were less pronounced, with monthly trading volume rising 3.3% to $1.23 billion.

Thanks to Binance Research, you can take advantage of industry-grade analyses of the processes shaping Web3. By sharing these insights, we hope to empower our community with the latest knowledge from the field of crypto research.

Today’s blog explores key Web3 developments in February 2024 to provide an overview of the ecosystem’s current state. We analyze the performance of crypto, DeFi, and NFT markets before previewing major events to look out for in March 2024.

Crypto Market Performance in February 2024

February 2024 was an exceptionally strong month for crypto, witnessing a 40% increase in total market capitalization. The launch of US spot BTC ETFs in January has been a huge success thus far, continuing to attract capital to the cryptocurrency market. Analyzing February’s ETF flow data reveals a hefty net inflow of over $4.9 billion, with Grayscale’s outflows showing notable decreases compared to January. In the coming weeks, the market is expected to shift focus toward potential spot ETH ETFs, though whether they will be approved remains to be seen.

Monthly change in crypto market capitalization (%)

Source: CoinMarketCap (February 29, 2024)

Monthly price performance of the top 10 coins by market capitalization

Source: CoinMarketCap (February 29, 2024)

All of the top 10 cryptocurrencies saw notable price gains in February, reflecting the market’s uptrend. DOGE, BTC, and ETH led the way with monthly gains of 46%, 45.5%, and 44.5%, respectively. The increased speculative appetite induced by bullish market conditions tends to benefit meme coins, as seen in DOGE’s leading price performance and other popular coins, such as SHIB, BONK, PEPE, and WIF, following suit. Still, BTC remained the center of attention, ending the month at a price level of $62,500, just 10% away from its all-time high of $69,000 (as of the time of writing in March, the ATH would be surpassed and updated at least twice).

Decentralized finance (DeFi)

As the broader market soared, the total value locked (TVL) in DeFi also saw significant increases throughout February, closing it with a monthly gain of 50%. Among the top 10 chains by TVL, Ethereum was particularly solid, with a 57% increase, while the rest saw more modest gains ranging from 20% to 30%. 

Notably, DeFi derivatives volume recorded a new monthly all-time high of $208 billion, a 62% increase from January. This surge in derivatives volume not only signifies the return of market speculation activity but also reflects the growth of DeFi derivatives infrastructure over the past years. Additionally, the liquid restaking narrative remained strong in February, with protocols such as Puffer, Renzo, Ether.fi, and KelpDAO seeing monthly TVL gains of 1247%, 311, 229%, and 142%, respectively.

TVL share of top blockchains

Source: DeFiLlama (February 29, 2024)

Non-fungible tokens (NFTs)

Monthly NFT trading volume

Figure 4: Monthly NFT trading volume

Source: CryptoSlam (February 29, 2024)

The NFT market remained relatively stable throughout February 2024, with monthly trading volume increasing 3.3% from January to $1.23 billion. Pandora, the first NFT collection using the ERC404 standard, seemed to take the spotlight. Launched on February 2, it closed the month with a sales volume of $147 million, the highest among all collections. ERC404 is an unofficial experimental token standard aiming to combine the characteristics of fungible tokens and NFTs. 

Regarding NFT sales volumes across the top blockchains, Ehtereum saw a 55% increase in February, while Bitcoin saw a 10% decrease, continuing its slowdown from January. Polygon reversed much of its surge in volume from the previous month, closing February with a 70% monthly decline.

Upcoming Events

To help users stay updated on the latest Web3 news, the Binance Research team has summarized notable events and token unlocks for the month to come. Keep an eye on these upcoming developments in the blockchain space.

Notable events in March 2024

Source: Binance Research

Largest token unlocks in US$ terms

Source: Token Unlocks, Binance Research

Binance Research

The Binance Research team is committed to delivering objective, independent, and comprehensive analyses of the crypto space. We publish insightful takes on Web3 topics, including but not limited to the crypto ecosystem, blockchain applications, and the latest market developments.

This article is only a snapshot of the full report, which contains further analyses of the most important market charts from the past month. It also dives deeper into the growing presence of women in crypto, Uniswap’s fee structure, EigenLayer’s surging performance in 2024, and the recent launch of Ethena’s USDe.

To read the full version of this report, click here.

Further Reading

Disclaimer: This material is prepared by Binance Research and is not intended to be relied upon as a forecast or investment advice and is not a recommendation, offer, or solicitation to buy or sell any securities or cryptocurrencies or to adopt any investment strategy. The use of terminology and the views expressed are intended to promote understanding and the responsible development of the sector and should not be interpreted as definitive legal views or those of Binance. The opinions expressed are as of the date shown above and are the opinions of the writer; they may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources deemed by Binance Research to be reliable, are not necessarily all-inclusive, and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given, and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Binance. This material may contain ‘forward-looking’ 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. Reliance upon information in this material is at the sole discretion of the reader. This material is intended for information purposes only and does not constitute investment advice or an offer or solicitation to purchase or sell in any securities, cryptocurrencies, or any investment strategy, nor shall any securities or cryptocurrency be offered or sold to any person in any jurisdiction in which an offer, solicitation, purchase, or sale would be unlawful under the laws of such jurisdiction. Investment involves risks.