Crypto Market Downturn Accompanied By DeFi Total Value Locked Experiencing 8.7% Decline in TVL in June – Report

Binance Research has examined key Web3 developments in June 2024 to provide an overview of the ecosystem’s current state.

Binance Research analyze the performance of crypto, DeFi, and NFT markets.

Despite a strong start to the month of June, the market “encountered major sell-offs and large-scale liquidation events driven by key factors.”

Binance Research pointed out that these include “the impending Mt. Gox repayment distributions scheduled for July for over 140 000 BTC.”

Notably, the U.S. and German Governments were “observed moving large amounts of BTC to centralized exchanges, adding on to the negative market sentiment.”

On a positive note, asset managers VanEck and ARK 21Shares filed “for the first Solana ETFs in the U.S., providing optimism amidst the challenging market,” the report from Binance Research noted.

Monthly crypto market capitalization decreased by 11.4% in June

Amidst the market-wide sell-off, most of “the top ten coins by market capitalization ended the month in the red. TON was the only one that significantly outperformed the market, hitting an all-time high (“ATH”) of US$8.24 and closing the month with a 17.5% gain.”

Additionally, TON’s DeFi TVL surged to US$700M, largely attributed to “The Open League,” a long-term incentive program “for TON users, teams, and traders.”

Binance Research also mentioned that BNB has “retraced by 18.8%, closing the month in red. XRP experienced similar volatility, closing the month with a 9.0% decline. BTC experienced a 10.9% month-on-month (MoM) decline, largely influenced by the Mt. Gox’s announcement.”

ETH faced a 10.0% MoM decline in June, “despite positive developments in SEC concluding investigation into Consensys and Ethereum 2.0, along with the progress of Ethereum ETF trading approval.”

Binance Research further noted that later in the month SEC launched “another lawsuit against Consensys’s MetaMask and its staking platforms, Lido and Rocket Pool.”

ADA and SOL marked “a 14.0% and 16.2% MoM decline respectively. However, towards the end of June, SOL exhibited a notable rally attributed to the introduction of the first spot Solana ETFs in the United States by digital asset managers VanEck and ARK 21Shares.”

AVAX recorded a significant “decline of 23.0%, while SHIB and DOGE each retraced by 27.7% and 34.8%. Memecoins bore the initial brunt of the market downturn, underperforming the broader market.”

In line with the market downturn, total DeFi TVL “experienced an 8.7% decline in TVL in June.”

Notable gainers for the month “include Bitcoin Layer-2 Networks Bsquared and CORE, which recorded impressive gains in TVL of 332% and 300% respectively.”

Binance Research further noted that TON also “continued its remarkable growth trajectory with a 109% month-on-month increase in TVL, hitting another all-time high of US$685.9M, thanks to ‘The Open League successes. June saw the long-awaited release of airdrops and token generation events from several notable projects, including LayerZero, zkSync, Blast, and Eigenlayer (Phase 2).”

The NFT market experienced “a continued negative trend in June, recording a total sales volume of US$46M, a 26.2% decrease from May.”

DMarket, an in-game item marketplace on Mythos, “led with the highest monthly sales volume at US$18.9M, followed closely by CryptoPunks with US$16.1M.”

Binance Research also mentioned that “top Ordinal collections such as Bitcoin Puppets and NodeMonkes experienced a sharp decline in sales volume, sliding 40.6% and 41.0% respectively. Bored Ape Yacht Club saw a slight decrease in monthly sales volume, while Pudgy Penguins outperformed the market by recording a 68.9% upsurge.”

Across the top chains, NFT sales volumes “decreased considerably.”

Bitcoin and Ethereum saw “a 48.2% and 50.2% downturn respectively, indicating the dwindling early hype over Bitcoin’s NFT. Solana’s monthly sales volume fell 40.9% and Blast faced a massive 81.0% plunge after the conclusion of its airdrop campaign.”

The Binance Research team is committed “to delivering objective, independent, and comprehensive analyses of the crypto space.”

They publish insightful takes “on Web3 topics, including but not limited to the crypto ecosystem, blockchain applications, and the latest market developments.”

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