knowledge and proper information are essential for any investment endeavor, especially in a volatile ecosystem like crypto. Crypto exchange platform, Binance shares a report on the state of crypto trends in May 2023.
Only large institutions and advanced investors employed high-quality research to obtain knowledge about the digital asset field in the past.
Crypto traders like you and me can now benefit from industry-grade analysis of the procedures that define the world of Web3 thanks to various research teams.
April was a watershed moment in crypto markets, with a strong run following Ethereum’s Shapella upgrade on April 12.
This trust was immediately followed by significant recuperation in key cryptocurrencies following the upgrade. Bitcoin and Ether attained new highs for the year, with BTC exceeding $30,000 and ETH reaching $2,100 at one point.
Nonetheless, prices fluctuated before returning to early April levels. As traders responded to the news, speculations of a large-scale bitcoin sell-off by the US government impacted this. These speculations, however, were proven to be incorrect.
Following last month’s volatility, the market is expecting a raise in interest rates by the United States Federal Reserve in May.
SOL was the best performer of the month, rising 8% in price. This increase occurred as the total value locked (TVL) on the chain increased by more than 11% in April.
BNB, the second-best performer, also demonstrated consistency, remaining in the green throughout the 23rd BNB burn of over two million BNB (approximately $676.6M).
MATIC and XRP, the two worst performers among the top ten cryptocurrencies, both saw major drops of around 12% in April.
MATIC’s decline has continued from the last month, as have the company’s daily active addresses and transactions. Regardless of a strong March, the decline in XRP could be ascribed in part to unresolved regulatory issues.
Decentralized finance (DeFi): Decentralized finance (DeFi) markets as a whole fell 0.50% by TVL to $49.5B. Nonetheless, the top blockchains’ TVL share remained largely unchanged, with Ethereum accounting for 58.4%, Tron accounting for 11.1%, and BNB Chain accounting for 9.7%.
Most significantly, on April 16, TVL on Ethereum reached a year high of over $32.1B. A similar pattern was observed for the paired TVL of L2 networks, specifically Arbitrum, Optimism, and Polygon, which also reached new highs. It continues to be observed how Ethereum’s Shapella upgrade will affect TVL.
Non-fungible tokens (NFTs): Despite a relatively assured start to the year, non-fungible token (NFT) trading volume has slowly dropped with this trend continuing into April.
By the end of the month, trading volume had dropped to almost half of what it had been in January. A similar pattern can be seen in other key statistics, such as the number of daily trades and daily traders, both of which have reached new lows for the year.
Nansen’s NFT-500 index fell as well, as floor prices for popular NFT collections dropped. The floor price for a significant collection, Bored Ape Yacht Club (BAYC), fell to a 5-month low when an NFT whale sold a large portion of their BAYC holdings.
This sale caused an overall market sell-off as other NFT whales sold their blue-chip NFTs in response.
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