Key takeaways

  • This series of blog posts concisely summarizes the findings of the Binance research team to expand on the findings of the original reports.

  • This latest article previews the recent report from the Binance research team which retrospectively analyzes the main developments in cryptocurrencies since last month.

  • The month of May 2023 was rich in events for the cryptocurrency market, with large-scale macroeconomic developments in a context of frenzy for the same coins and the largest drop in the overall capitalization of the cryptocurrency market since the start of the 'year.

Binance Research lets you benefit from cutting-edge analytics on the processes shaping tomorrow's Web3. By disseminating this information, we intend to bring to our community the latest discoveries of crypto researchers. Want to go even further? The full reports are available on the Binance Research website.

Knowledge is the key to success in the financial markets. Previously, only large financial institutions and the most resourceful financial experts relied on high-quality research reports to navigate the world of digital assets. With Binance Research, you can access the latest data and findings from cryptocurrency research.

Today, we will go through the main Web3 developments that took place during the month of May 2023 to get an overview of the current state of the crypto ecosystem. We will also analyze the performance of the crypto, DeFi and NFT markets before looking ahead to the major events that will occur in June.

Crypto market performance in May 2023

In May, the crypto market suffered the consequences of macroeconomic news and developments. For most of the month, financial markets were battered by uncertainty surrounding the US debt ceiling. Overall, the crypto market capitalization declined by 6%, the largest decline of the year so far.

Nevertheless, positive regulatory developments have been observed in Asia. Beijing has published a whitepaper for Web3 innovation and development, which could be seen as a sign of China’s growing openness to blockchain technologies. Additionally, Hong Kong announced that it would begin allowing retail trading of cryptocurrencies, with the government accepting applications for digital asset exchanges from June 1.

Monthly variation in the capitalization of cryptocurrencies (%)

Jan.

Feb.

Mars

Avr.

May

June

Jul.

August

Sept.

Oct.

Nov.

Dec.

2023

30,4

3,4

9,3

3,2

-6,0

2022

-22,6

-0,3

25,3

-18,1

-25,2

-31,7

21,8

-11,4

-2,1

7,2

-18,0

-4,5

2021

33,9

39,6

31,1

11,4

-25,7

-5,9

12,5

25,2

-9,9

42,9

-1,0

-15,0

2020

35,4

-5,5

-27,7

38,8

10,0

-4,5

25,9

13,7

-7,6

14,6

37,5

39,7

2019

-11,6

12,3

11,1

17,1

55,5

30,8

-22,5

-6,5

-13,7

14,8

-14,7

-7,9

2018

-10,2

-9,0

-42,9

67,9

-26,2

-23,4

18,1

-22,9

-1,7

-8,4

-32,1

-5,5

Source : CoinMarketCap (31 mai 2023)

Monthly price performance of the top 10 cryptos by capitalization

XRP has been the best performer this month. Ripple has taken steps to expand its capabilities, including launching a new platform allowing central banks, governments and financial institutions to issue their own digital currencies.

DOGE and SHIB were the two worst performing cryptos among the top 10 in May. Despite the meme coin frenzy gaining momentum throughout the month, DOGE and SHIB were unable to escape the broader declines experienced across the market. Dogecoin’s daily trading volumes reached all-time highs following the introduction of “DRC-20 tokens,” although it remains to be seen whether this activity will be sustainable.

Decentralized finance (DeFi)

Decentralized finance (DeFi) markets declined 3.4% in TVL (total value locked) to $47.9 billion. The ranking of the best performing blockchains based on TVL has not changed much: 58.1% for Ethereum, 11.9% for Tron, and 9.3% for BNB Chain.

Share of TVL in the most efficient blockchains

Ethereum saw a slight decline in TVL to $27.9 billion, part of a broader decline in liquidity on the blockchain. Fantom experienced the biggest decline, losing more than a third of its TVL. These drops came amid rumors and uncertainty surrounding Multichain, in which 35% of Fantom’s TVL is locked.

Non-fungible tokens (NFT)

Monthly trading volume for NFTs

NFT trading volume increased slightly in May, ending the month at just over $740 million. The total number of buyers and sellers reached a record high for the year at 1.67 million, and the total number of transactions stood at 8.92 million.

At the same time, the Nansen NFT-500 index continued its decline, as the floor prices of the main NFT collections fell. Significant instant sales of major collections, including Doodles and Mutant Ape Yacht Club (MAYC), were observed in May. Another potential factor has been the frenzy around meme coins, with traders turning away from NFTs and selling them in favor of meme coins gaining traction.

Upcoming events

To help you stay informed with the latest Web3 news, Binance Research has summarized the main events and token releases for the coming month. Keep an eye out for these upcoming developments in the blockchain world.

Notable events in June 2023

Most token unlocks in USD

Binance Research

The Binance Research team is committed to producing objective, independent and comprehensive analyzes of the crypto world. She publishes informed thoughts on Web3 topics, including the crypto ecosystem, blockchain technologies and the latest market news.

This article is just a preview of the full report which contains additional information as well as analysis of key market charts for the past month. It also provides an in-depth look at meme coins, BRC-20, Ethereum Layer 2 (L2) fees, USDT, and LSDfi.

Click here to read the full report. Visit the Insights & Analysis page of the Binance Research website for more in-depth investigations into the latest Web3 developments.

Take this chance to educate yourself by taking advantage of the latest discoveries from crypto researchers!

For more information

  • Binance Research: Dominant Crypto Sector Trends in May 2023

  • Binance Research: Investigates the Growing Popularity of BRC-20 Tokens

  • Binance Research: institutional custody of cryptocurrencies

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