Markets
Mt. Gox and the German government have sunk the cryptocurrency market
Binance Research has revealed a report on the cryptocurrency market for June 2024.
According to the latest researchMarket capitalization fell by 11.4% over the month. However, this trend is typical for June: over the past five years, the cryptocurrency market has closed June with a positive indicator only twice.
Source: Binance Research
Additionally, nine out of ten assets by market capitalization ended the month in the red. According to experts, this decline was caused by news about payments to Mt. Gox and the Bitcoin movements of the US and German governments (Bitcoin) to centralized exchanges.
Dive into the cryptocurrency market
Growth leaders
One of the few tokens that has seen growth is Toncoin (TONNE). The asset increased by 17.5%, reaching an all-time high of $8.24. Binance Research attributed this growth to the success of The Open League program and the support of the ecosystem through grants. Additionally, the number of daily active addresses on the network reached an all-time high of nearly 578,000.
TON has also had notable success in attracting TVL entries in sectors such as Telegram mini-apps and games, challenge, NFTand memecoins.
“TON also continued its remarkable growth trajectory with a 109% monthly increase in TVL, reaching a new all-time high of US$685.9 million.”
Binance Research Report
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 initial allocation, with the remaining 85% being redistributed to 1.28 million eligible addresses.
“The LayerZero Foundation implemented a “proof of donation” claim mechanism, which received mixed reactions from the community.”
Binance Research Report
The NFT sector continues to face difficult times
The NFT sector also saw no growth. Sales totaled $46 million, down 26.2% from May.
Source: Search on Binance
The leader in monthly sales volume was NFT marketplace DMarket. DMarket, the in-game items platform on Mythos, led the way with the highest monthly sales at $18.9 million, followed by CryptoPunks at $16.1 million. Ordinals’ top collections, such as Bitcoin Puppets and NodeMonkes, saw sales decline, down 40.6% and 41%, respectively.
“Across major chains, NFT sales volumes have declined significantly. Bitcoin and Ethereum have seen a decline of 48.2% and 50.2%, respectively, indicating that Bitcoin’s initial NFT hype has waned.”
Binance Research Report
Miners sell bitcoins
As for miners, they have been steadily selling BTC since November 2023. This is the longest consecutive period of net sellers since 2017. As a result, BTC balances among miners have reached their lowest level in the last 14 years. Analysts attribute this to the halving.
Source: Binance Research
“Since the block reward accounts for most of miners’ revenue, many miners have been forced to sell their holdings to survive.”
Binance Research Report
What happened in the cryptocurrency market in May?
A month earlier, Binance Research revealed a report for May 2024. According to a previous analysis, the cryptocurrency market recovered in May and recorded an increase in capitalization by 8.6%. At the same time, the cryptocurrency market closed in positive dynamics for the third time. Prior to that, negative dynamics were observed from 2021 to 2023.
Moreover, all crypto assets in the top 10 by capitalization ended the month in positive territory. The leader among them was Solana (GROUND), with a growth of 33.9%. Ethereum (ETH) is in second place and Toncoin is in third place.
The NFT market also closed lower. Total sales came in at $0.63 billion, down 41% from April 2024.
What to expect in July
Bitcoin ended June down 7%. This is the second month in 2024 when BTC ended with a decrease 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 of Coin glassThe cryptocurrency 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%.
Source: Coin glass
Two important events are planned for the second month of summer, which are being followed by the entire cryptocurrency market — Cryptocurrency payments to Mt. Gox customerswhich they have been waiting for ten years, is the event that causes unrest in the community due to the possible impact of sales on the price.
The crypto community is also waiting Possible launch of Ethereum spot ETF. Their approval could become a powerful growth driver for the cryptocurrency market. On July 8, several companies issuing Ethereum spot ETFs sent updated applications on Form S-1 to the SECOND.