Binance Research: Key Trends in Crypto – June 2024
Main Takeaways
This blog previews the recent Binance Research report discussing key developments in crypto markets over the past month.
May was a resurgent month for crypto, with the market bouncing back to achieve an 8.6% rise in total market capitalization.
The DeFi market also reflected these positive trends, with its TVL rising 21.7% for the month. However, the NFT market showed negative dynamics, recording a 41% decrease in total sales volume to $0.63 billion.
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Today’s blog explores key Web3 developments in May 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 June 2024.
Crypto Market Performance in May 2024
After a somewhat tumultuous April, crypto markets bounced back in May, closing with an 8.6% increase in total market capitalization. The preliminary approval of spot ETH ETFs by the U.S. Securities and Exchange Commission (SEC) and the passing of the Financial Innovation and Technology for the 21st Century Act (FIT21) by the U.S. House of Representatives were two major regulatory developments that contributed to this market-wide rally. These events occurred as U.S. political campaigns continued to unfold, with various candidates discussing their views on cryptocurrencies. Finally, spot BTC ETFs saw 14 consecutive days of net inflows, adding to the overall positive performance of the market.
Monthly change in crypto market capitalization (%)
Monthly price performance of the top 10 coins by market capitalization
Source: CoinMarketCap (May 31, 2024)
All of the top ten coins by market capitalization ended the month with price increases. Solana was the strongest performer in May, with its price surging 33.9% as its DeFi TVL spiked 33.4% to $4.84 billion while its monthly on-chain DEX trading volumes reached $31.2 billion. This was largely driven by a strong performance of memecoins on Solana, such as BONK and WIF.
ETH began a strong rally leading up to the SEC’s unexpected approval of spot ETH ETFs, rising 26.8% for the month. The approval came on May 23 and marked a notable victory for the industry, bolstering ether’s strong performance and triggering a market-wide rally. TON, the third-best performer of the month, saw a 24.2% price increase as its DeFi TVL continued to push all-time highs, rising 227.8% for the month to reach $326 million.
Following ETH’s rally, ERC-20 memecoins also spiked in price, with DOGE and SHIB rising 19.9% and 11.4% for the month, respectively. Meanwhile, AVAX rose a respectable 12.4%, and BTC rose 12.2% as spot BTC ETFs saw 14 days of consecutive net inflows. Aligned with the wider market trends, XRP, BNB, and ADA experienced more modest gains of 6.1%, 5.6%, and 4.7%, respectively.
Decentralized finance (DeFi)
Reflecting the broader market resurgence, DeFi TVL recorded an uptick in May, with a monthly gain of 21.7%. Among the top ten chains, notable gainers included Merlin, TON, and Solana, recording monthly gains of 183%, 135%, and 36%, respectively. Several emerging protocol projects – namely Pendle Finance, Athena, Morpho, and Polymarket – spanning various so-called “breakthrough DeFi markets” such as interest rate derivatives, modular lending, yield-bearing stablecoins, and predictions all experienced notable growth in May, breaching new highs in TVL.
TVL share of top blockchains
Non-fungible tokens (NFTs)
Monthly NFT trading volume
In contrast to the wider industry dynamics, the NFT market saw a significant decline in May. A total sales volume of $0.63 billion marked a 41% decrease from April. Though Ordinals remained the top collection by sales volume, it experienced a 71% drop for the month. Other top collections, including NodeMonkes, Crypto Punks, and Bored Ape Yacht Club, also saw significant declines in sales volumes.
This poor performance was observed across the top chains, with NFT sales volumes falling considerably. In particular, Bitcoin experienced a dramatic drop from $602 million to $194 million in May, marking a 68% decline. Nevertheless, there were some positives, with Fantasy Top, a trading card game on Blast, releasing on May 1 and managing to defy the negative trend.
Upcoming Events
To help users stay updated on the latest Web3 news, the Binance Research team has summarized notable events and token unlocks for the month to come. Keep an eye on these upcoming developments in the blockchain space.
Notable events in June 2024
Source: Binance Research
Largest token unlocks in US$ 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 recent developments surrounding Grayscale’s ETHE discount, Solana’s daily fees compared to Ethereum’s, real-world asset tokenization, and the resurgence of prediction markets in the wake of U.S. presidential campaigns.
Read the full version of this Binance Research report 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.