Markets
Mt. Gox and the German government have sunk the cryptocurrency market
Binance Research has released 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 — in the last five years, the cryptocurrency market has closed June with a positive indicator only twice.
Source: Binance Research
Furthermore, nine out of ten assets by market cap ended the month in the red. According to experts, this decline was caused by news about payments to Mt. Gox and the movement of Bitcoins by the US and German governments (BTC) for centralized exchanges.
Dive into the cryptocurrency market
Growth leaders
One of the few tokens that has grown is Toncoin (TONNE). The asset grew by 17.5% to reach an all-time high of $8.24. Binance Research attributed this growth to the success of The Open League program and ecosystem support through grants. Additionally, the number of daily active addresses on the network reached a record high of nearly 578,000.
TON has also had remarkable success in attracting TVL entries in sectors such as Telegram mini-applications and games, definition, NFTsand memecoins.
“TON also continued its remarkable growth trajectory with a 109% increase in TVL month-over-month, reaching another all-time high of $685.9 million.”
Binance Research Report
Airdrops
Additionally, the report mentions airdrops. In June, token distributions were conducted through several 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.
“LayerZero Foundation has implemented a ‘Proof of Donation’ claiming mechanism, which has received mixed reactions from the community.”
Binance Research Report
The NFT sector continues to face tough times
The NFT sector also showed no growth. Sales totaled $46 million, down 26.2% from May.
Source: Binance Search
The leader in monthly sales volume was the DMarket NFT marketplace. DMarket, the in-game item 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 declines in sales, down 40.6% and 41%, respectively.
“Across major chains, NFT sales volumes have declined considerably. Bitcoin and Ethereum saw a 48.2% and 50.2% drop, respectively, indicating the waning of the initial Bitcoin NFT hype.”
Binance Research Report
Miners are selling bitcoins
As for miners, they have been selling BTC consistently 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
“Given that the block reward represents the income of most miners, many miners have been forced to sell their assets 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 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. Before that, negative dynamics were observed from 2021 to 2023.
Furthermore, all crypto assets in the top 10 by capitalization ended the month in positive territory. The leader among them was Solana (SUN), with growth of 33.9%. Ethereum (ETH) is in second place, and Toncoin is in third place.
The NFT market also closed with a drawdown. Total sales were $0.63 billion, down 41% compared to April 2024.
What to expect in July
Bitcoin ended June down 7%. This is the second month in 2024 that BTC ended with a decline in value. In April, losses reached almost 15%; in other months, BTC showed growth with dynamics ranging from 1% to 44%.
According to historical data from 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 significant events are planned for the second month of summer, which are being followed by the entire cryptocurrency market — Cryptocurrency payments for 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 anticipating the possible launch of Ethereum spot ETFs. Their approval could be a strong driver for the growth of the cryptocurrency market. On July 8, several companies issuing spot Ethereum ETFs submitted updated applications on Form S-1 to the SEC.