Binance Research has released a report on the cryptocurrency market for June 2024.

Dive into the Crypto Market

According to the latest research, the market capitalization declined by 11.4% over the month. This trend is typical for June; over the past five years, the crypto market closed June with a positive indicator only twice.

Nine out of ten assets by market capitalization ended the month in the red. Experts attribute this decline to news about payments to Mt. Gox and the movement of Bitcoins (BTC) by the U.S. and German governments to centralized exchanges.

Growth Leaders

One of the few tokens that showed growth is Toncoin (TON). The asset grew by 17.5%, reaching a historical high of $8.24. This growth is attributed to the success of The Open League program and ecosystem support through grants. The number of active daily addresses on the network reached a record high of almost 578,000.

TON also had success in attracting TVL inflows in sectors such as mini-apps and games, DeFi, NFTs, and memecoins.

“TON also continued its growth trajectory with a 109% month-on-month increase in TVL, hitting another all-time high of US$685.9M.”

Airdrops

The report also mentions airdrops. In June, token distribution was carried out through various projects, including LayerZero, ZKsync, Blast, and Eigenlayer. For LayerZero, the protocol identified over 803,000 addresses as potential Sybil wallets. These addresses received only 15% of the original allocation, with the remaining 85% redistributed to 1.28 million eligible addresses.

“The LayerZero Foundation implemented a ‘Proof-of-Donation’ claiming mechanism, which received mixed reactions from the community.”

The NFT Sector Continues to Face Difficult Times

The NFT sector also showed no growth. Sales totaled $46 million, down 26.2% from May. The leader in monthly sales volume was the DMarket NFT marketplace, with $18.9 million, followed by CryptoPunks with $16.1 million. Ordinals top collections, such as Bitcoin Puppets and NodeMonkes, experienced declines in sales, down 40.6% and 41%, respectively.

“Across the top chains, NFT sales volumes have decreased considerably. Bitcoin and Ethereum saw a 48.2% and 50.2% downturn, respectively, indicating the dwindling early hype over Bitcoin’s NFT.”

Miners are Selling Bitcoins

Miners have been consistently selling BTC since November 2023. This is the longest consecutive period of net sellers since 2017. BTC balances among miners reached their lowest level in the last 14 years. Analysts attribute this to halving.

“Given that the block reward represents most miners’ income, many miners have been forced to sell their holdings for survival.”

What Happened in the Crypto Market in May?

A month earlier, Binance Research reported that the crypto market recovered in May, recording a capitalization increase of 8.6%. The crypto market closed in positive dynamics for the third time, reversing the negative trends observed from 2021 to 2023.

All top 10 crypto assets by capitalization ended the month positively. Solana (SOL) led with 33.9% growth, followed by Ethereum (ETH) and Toncoin (TON).

The NFT market, however, closed with a drawdown. Total sales were $0.63 billion, down 41% from April 2024.

What to Expect in July

Bitcoin ended June down 7%, marking the second month in 2024 with a decline in value. In April, losses amounted to almost 15%. In other months, BTC showed growth with dynamics from 1% to 44%.

According to historical data, the crypto market typically shows growth in July, with an average growth rate of 7.3%. Analysis since 2013 has shown seven successful months with growth of up to 24%, while only five months were unprofitable with a decline of at least 10%.

Two significant events are planned for July that the entire crypto market is watching closely. Payments of cryptocurrency to clients of Mt. Gox, awaited for ten years, could impact prices. Additionally, the possible launch of spot Ethereum ETFs could become a strong growth driver for the crypto market. On July 8, several companies issuing spot Ethereum-ETFs sent updated applications to the SEC.

Stay updated with all the latest news and insights on Global Crypto News.

Post Views: 6