The first quarter of 2024 turned out to be a rollercoaster ride for the crypto world. The CoinGecko report revealed mind-boggling growth and major shifts across various sectors. Building on a strong Q4 2023, the total crypto market cap skyrocketed by an astonishing 64.5% in Q1 2024. It reached a staggering $2.9 trillion by March 13th. This surge, an impressive $1.1 trillion increase, was nearly double the growth seen in the previous quarter.
A key driver was the US approving spot Bitcoin ETFs in early January, a landmark for crypto markets. Bitcoin, the crypto trailblazer, spearheaded growth at 68.8% during Q1, hitting an all-time high of $73,098. The US Spot Bitcoin ETF approval paved the way for massive institutional investment. Assets under management (AUM) exceeded $55.1 billion by April 2nd.
Ethereum, the second-largest crypto by market cap, also witnessed notable developments in Q1 2024. Ethereum restaking on EigenLayer saw a remarkable quarterly growth of 36%, with the total restaked ETH reaching 4.3 million. Meanwhile, Solana memecoins experienced a surge in popularity, with the top 10 memecoins growing by a staggering $8.32 billion in market cap.
NFT Market Flourishes In Crypto Realm
NFTs are something that grabbed the attention of many, with trading volumes hitting over $4.7 billion across the top ten markets in Q1 2024. A major player in the NFT space is Magic Eden who outperformed Blur as regards trading volume in March through its innovative Diamond reward program as well as an Ethereum-based marketplace.
CEXes experienced a rise in trading action, with leading CEXes recording $4.29 trillion in spot trading, highest since the end of 2021. Binance cemented its dominance, capturing 50% market share by March’s conclusion. However, smaller exchanges like MEXC saw their share shrink as traders focused on major cryptocurrencies such as Bitcoin, Ethereum, and Solana.
In contrast, Ethereum’s proportion of decentralized exchange (DEX) trading volume declined below 40% in Q1 2024. Other chains like Solana and Arbitrum emerged as viable alternatives. Memecoins contributed significantly to trading volume. Despite Ethereum’s diminished market share, it recorded $70 billion in trades in March, indicating sustained ecosystem activity.
Related Reading | Bitcoin’s Halving Effect: A Promising Long-Term Investment