Point de Vue

Monthly Market Insights - May 2024

Binance Research (JieXuan Chua, CFA, Moulik Nagesh, Shivam Sharma, Brian Chen)

Monthly Market Insights - May 2024
Monthly Market Insights - May 2024
Image - Binance Research

The crypto market experienced downward momentum in April, closing the month with an 11% decrease in total market capitalization. Several factors, including changes in expectations of rate cuts, geopolitical risks, and a slowdown in flows of spot BTC ETFs, were seen as the main contributors to the downward pressure.

The Runes Protocol, a new token standard for fungible tokens on the Bitcoin network, has generated over US$130M in fees since launching on April 20. They have also been responsible for roughly 50% of all of Bitcoin’s transactions since then, across 3M+ transactions recorded, generating approximately 33% of all fees on the network.

Total value locked (“TVL”) in liquid restaking protocols continued to track upward, crossing the US$10B mark in April. Apart from the liquidity benefits of LRTs, a key driver of growth has been “point farming,” where users participate in these protocols to earn points in hopes of being eligible for future airdrops.

The total supply of USD-pegged stablecoins has been on an upward trajectory this year, reaching US$160B in April, the highest level in nearly two years. This growth corresponds with a broader market upturn, emphasizing stablecoins as crucial indicators of crypto market demand. Particularly, First Digital’s FDUSD and Ethena’s USDe have been major beneficiaries of this growth, increasing 80.0% and 52.3%, respectively, in April alone.

The TON network has witnessed a surge in on-chain metrics as DeFi TVL and monthly active addresses both broke all-time highs in April. This was largely driven by the launch of “The Open League,” an initiative that aims to bring millions of Telegram users on-chain and drive activity on the TON network.


Source - Binance Research

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