Coin Circle Network Report:
Source: Binance; Compiled by: Baishui
Summary
This article reviews the recent Binance research report and discusses the major developments in the cryptocurrency market over the past month.
In June, the cryptocurrency market showed a significant downward trend, with a decline of up to 11.4%.
Consistent with the market downturn, the total locked-in value (TVL) of DeFi decreased by 8.7% in June. The NFT market experienced a prolonged slump, with total sales of $46 million, a decrease of 26.2% compared to May.
This article explores the development of Web3 in June 2024 to provide an overview of the current state of the ecosystem. Before previewing the major events to watch in July 2024, we analyze the performance of the cryptocurrency, DeFi, and NFT markets.
Cryptocurrency Market Performance in June 2024
Despite a strong start in June, the market experienced significant sell-offs and large-scale liquidation events due to several key factors. These factors include the repayment of over 140,000 BTC by Mt. Gox scheduled for July. It is worth noting that, according to observations, the US and German governments have transferred a large amount of BTC to centralized exchanges, exacerbating negative market sentiment.
On the positive side, asset management companies VanEck and ARK 21Shares have applied for the first batch of Solana ETFs in the US, bringing optimism to the challenging market.
The market capitalization of cryptocurrencies in June decreased by 11.4%.
Source: CoinMarketCap, as of June 30, 2024
Monthly price performance of the top ten tokens by market capitalization
Source: CoinMarketCap, as of June 30, 2024
Against the backdrop of a widespread market sell-off, most of the top ten tokens by market capitalization experienced losses at the end of the month. TON was the only token that performed significantly better than the market, reaching a historical high (ATH) of $8.24 and a monthly increase of 17.5%.
In addition, TON’s DeFi TVL surged to $700 million, primarily due to “The Open League,” a long-term incentive program for TON users, teams, and traders.
BNB retreated by 18.8% and closed lower at the end of the month. XRP experienced similar volatility, falling by 9.0% at the end of the month. BTC declined by 10.9% month-on-month, mainly influenced by the Mt. Gox announcement. Despite the end of the US Securities and Exchange Commission’s investigation into Consensys and Ethereum 2.0, as well as progress in the approval of Ethereum ETF trading, ETH fell by 10.0% in June. Later in the month, the SEC filed another lawsuit against Consensys’ MetaMask, as well as its staking platforms Lido and Rocket Pool. ADA and SOL fell by 14.0% and 16.2% month-on-month, respectively. However, at the end of June, SOL saw a significant rebound as the digital asset management companies VanEck and ARK 21Shares launched the first Solana spot ETF in the US. AVAX plummeted by 23.0%, while SHIB and DOGE fell by 27.7% and 34.8% respectively. Memecoins were initially hit hard by the market downturn, performing worse than the overall market.
Decentralized Finance (DeFi)
With the market downturn,
DeFi’s total TVL decreased by 8.7% in June.
Notable winners this month include Bitcoin Layer 2 network Bsquared and CORE, whose TVL increased by 332% and 300% respectively. Thanks to the success of “The Open League,” TON continued its astonishing growth trajectory, with TVL increasing by 109% month-on-month, reaching a historical high of $685.9 million. In June, several well-known projects launched highly anticipated airdrops and token generation events, including LayerZero, zkSync, Blast, and Eigenlayer (Phase 2).
TVL share of top-tier blockchains
Data source: DeFiLlama, as of June 30, 2024
Non-Fungible Tokens (NFTs)
Monthly NFT trading volume
Source: CryptoSlam, as of June 30, 2024
The NFT market continued its negative growth trend in June, with total sales of $46 million, a decrease of 26.2% compared to May.
DMarket, the in-game item trading market on Mythos, topped the list with monthly sales of $18.9 million, followed by CryptoPunks with sales of $16.1 million. Sales of top-tier Ordinal series such as Bitcoin Puppets and NodeMonkes experienced sharp declines, dropping by 40.6% and 41.0% respectively. Bored Ape Yacht Club saw a slight decline in monthly sales, while Pudgy Penguins outperformed the market with a 68.9% increase.
In the top-tier blockchains, NFT sales saw significant declines. Bitcoin and Ethereum decreased by 48.2% and 50.2% respectively, indicating a gradual fading of the early hype around Bitcoin NFTs.
After the conclusion of airdrop activities, Solana’s monthly sales volume dropped by 40.9%, while Blast’s monthly sales volume plummeted by 81.0%.
Upcoming Events and Token Unlocks
To help users stay up to date with the latest Web3 news, the Binance research team has summarized the major events and token unlocks for the next month. Please pay close attention to these developments happening in the blockchain field.
Important Events in July 2024
Source: Binance Research, CoinMarketCap
Token unlocks in USD
Source: Token Unlocks, Binance Research