Coin Metrics: Overview of Digital Assets in the second quarter of 2024

Author: TANAY VED Source: Coin Metrics Translation: Good Oba, Bit Chain Vision World

Key points:

• Although the overall performance of the cryptocurrency market is relatively sluggish, in the second quarter of 2024, ETH, BTC, and SOL have increased by 48%, 44%, and 38%since the beginning of the year.

• The 30 -day hash rate of Bitcoin decreased by 7% to 580 EH/s after halving, and the remarkable MT. GOX repayment and the BTC sales of German authorities increased market pressure.

• Ethereum pledge reached 33 million ETH (accounting for 27%of the supply), while 13.7 million ETH (11.5%) was locked in smart contracts and bridges, limiting liquidity.

• In May 2024, the transfer volume of stablecoins reached a record 1.2 trillion US dollars, of which DAI and the USDT on the Ethereum led at USD 345 billion and 388 billion US dollars, respectively.

introduce

HereIn the special edition of “Network Status”,We will examine the main development of the digital asset industry in the second quarter of 2024 through data drive.

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This year, the start is strong. With the launch of the long -awaited spot Bitcoin ETF, the development momentum of Ethereum to scalability, stabilizing currency, and the 1st level of ecosystems, the market performance in the second quarter was relatively bland.Among the largest encrypted assets, Ethereum (ETH) has risen 48%so far this year, followed by Bitcoin (BTC) and Solana (SOL), which have risen by 44%and 38%, respectively.The performance of aluminum coins, real -world assets (RWA) and artificial intelligence (AI) computing has been outstanding, and tokens such as PEPE and FETCH.AI (FET) have risen sharply.

In May, the US Securities and Exchange Commission (SEC) accidentally approved the Ethereum spot ETF, which brought more opportunities to the original challenging April and June.In the past few months, the fourth halved of Bitcoin has been halved, and the market is on the new token^{issuedThe distribution mechanism is also very cautious, resulting in uneven performance in different industries.}

Macro trends and market performance

The fate of the market is not limited to incidents that occur within the encryption ecosystem, but also affected by external market conditions and development.The performance of major traditional market indexes, ETFs and stocks and digital assets can provide important backgrounds for understanding a wider economic pattern.

In the second quarter of 2024, we witnessed the significant differentiation between the crypto market and traditional risk assets (especially technology stocks).Artificial intelligence is still the focus of investors’ attention. Nvidia’s valuation is more than US $ 3 trillion, becoming the world’s most valuable company. At the same time, it contributes more than one -third of the S & P 500 index in 2024.Apple’s stock price rose 24%, thanks to the company’s announcement issued with Openai during the company’s annual Global Developer Conference (WWDC), and jointly promoted the seven major technology stock indexes to rise by 14.8%in the second quarter.Along this theme, some listed Bitcoin miners have positioned themselves as infrastructure providers that compute applications wider to calculate applications, and promoted the rise of Valkyrie bitcoin miner ETF (WGMI).

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The digital asset market is generally behind these bullish trends of technology and public miners -COIN METRICS’s CMBI 10 Index (the performance benchmark of 10 maximum encrypted asset baskets) and the CMBI overall market index have double -digit declines in the second quarter.EssenceAs the stock market reaches a record high, participants in the encrypted market may seek reversal, and this reversal is catalyzed by interest rate cuts, the favorable results of the presidential election, or the pressure of the current shrouded market.

Bitcoin is ready to deal with the impact

Unexpectedly, with April FourthMinus halfAfter completion, Bitcoin has entered the fifth era^{EssenceHowever, a series of development factors may lead to recent BTC prices.Although the launch of Runes increased the transaction fee income after halving, the decrease of block rewards from 6.25 BTC to 3.125 BTC compressed the profit of the miners, resulting in a 30 -day mobile average of the Bitcoin hash rate decreased by 7% to 580 EH/s.Although it is less than halved the previous few times, the BTC reserves held by the miners have also dropped to the lowest level since April 2021, currently 1.78 million BTCs.}

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In addition, market sentiment has also been shaken by increasing concerns about the increase in selling pressure caused by the upcoming supply.It is worth noting that MT. GOX, a long -closed exchange, announced that it will reassess about 142,000 bitcoins (worth about 8 billion US dollars) or approximately 65,000 bitcoin in July this year as the initial payment of creditors.Although the previous users will receive Bitcoin at a much higher market price, they will still be uncertain when they will hold or sell Bitcoin.However, recently related wallets related to the entity have caused people’s concerns about selling, and may promote some investors to sell themselves.

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In addition, the German Federal Criminal Police (BKA) seized 50,000 Bitcoin from the operator of Movie2k.to. Movie2k.to was an online platform that provided copyright movies before 2013.As of July 8th^{,,The wallet related to the entity still holds about 27.4K Bitcoin.Recently, the flow between the exchanges such as intermediary addresses and coinbase, Coinbase, Bitstamp, and Kraken has triggered people’s selling strategies for the entity and their influence on the market.As a result, these development triggered liquidation, and the Weilian contract of Bitcoin futures contract was closed by approximately $ 8 billion.Although these incidents may cause short -term pressure on Bitcoin’s prices, its one -time nature indicates that the impact may be temporary.}

Ethereum ETF is about to launch the inflation pressure of & amp; eTH

One of the key development of Ethereum in the second quarter is that the Ethereum spot ETF was accidentally approved.Prior to this, people believe that the listing time of Ethereum ETF will far exceed the expected summer deadline, which is mainly due to the uncertainty of the regulatory authority in ETH’s security state.However, as SEC approved the 19B-4 of eight publishers in May, these concerns were calmed down, thus clarifying ETH’s commodity status.The market response is rapid, promoting the higher tokens of ETH and other ecosystems, and at the same time, the value of grayscale Ethe Trust (ETHE) and the value of net assets have been rapidly compressed.

As Ethereum ETF is about to launch, people’s attention has been transferred to how much of these tools can attract assets such as Ethereum (relative to Bitcoin).Without studying the size of the Ethereum ETF market, understanding the supply of Ethereum may help.33 million ETH (about 27%of the supply volume) was pledged, while 13.7 million ETH (about 11.5%of the supply volume) was held in smart contracts and bridges, and about 39%of ETH supply was “locked” by “locked”EssenceAt the same time, the supply of exchanges has dropped to 12 million ETH (about 10%of the supply).This limited liquidity may increase price sensitivity to respond to stable inflows from ETF -related needs.

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On the other hand, as Ethereum has continued to advance on its scalability route chart, since the EIP-4844 in March, the use rate of BLOB space on the second layer of BLOB has continued to increase.With the decrease in operating costs and costs, Rollup has become more likely to access. User activities have further transferred to the second floor of Ethereum, and the Ethereum main network is affected.Therefore, after the EIP-4844, the total cost on the Ethereum L1 has reached the minimum of 460 ETH ($ 1.4 million) in the year, thereby reducing the supply consumption rate, thereby making the ETH supply slightly net inflation.This highlights the interaction between Ethereum scalability improvement and the currency system, and needs to increase the use of the second floor to maintain the tightening pressure of ETH.

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Outside Ethereum, Solana’s cost has increased by more than 150% so far this year to reach the level close to Ethereum.Although it is 50%lower than March, Solana’s high usage rate has brought considerable cost income so far.

Pursuit of quality: Congzhan currency lost pet

The attention of market participants has also been attracted by the surge in the issuance of tokens and its related token economics.In particular, compared to FDV (completely diluted valuation), tokens with low circulation (public supply) and large amounts of unlocked tokens prevailed.Looking at our report “floating in the air”, we will discuss this theme in detail.As the threshold for issuing tokens and the creation of a new chain decreases, projects like Pump.fun have promoted the rise of MEME coins, and projects like Conduit make the deployment summary easier. A large numberInfrastructure tokens came into being.

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As a result, the “cottage coin” industry becomes bloated and leads to excess token supply.It can be said that this has led to the increase in the market’s attention to new tokens, initial valuation and distribution, making blue -chip assets with established demand more attractive.

The 14 -day mobile average of the mainstream currency (including BTC, ETH, and SOL) and Congzhong (other assets in the world of Datonomy) reflects the dynamics convincingly.In the bull market in 2021, the transaction volume of cottage coins easily exceeded the mainstream currency, and this trend reversed this time.Although the transaction volume of mainstream currencies reached a level similar to the peak (about 42 billion US dollars) in 2021, the transaction volume of the cottage has decreased by tripral.Recently, the gap between these two baskets has also expanded, and the spot transaction volume of mainstream currencies has increased by $ 11 billion.

Stable coin obtain supervision motivation

Since the fourth quarter of 2023, the stabilization currency industry has continued to grow and liquidity has continued to increase.In the second quarter, the total supply of stabilized currency increased by 3.8%, with a total of 159 billion US dollars, of which 60 billion US dollars were custody on Ethereum L1, and a $ 30 billion trustees were on TRON.Based on monthly, the number of dollars (after adjustment) in May (after adjustment) USD transfers hit a new high of 1.2 trillion US dollars, mainly driven by DAI ($ 345 billion) on Ethereum and TETHER (US $ 388 billion) on TRON.

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This growth is consistent with the development of major regulatory regulations, especially the EU’s implementation of the crypto asset market (MICA) regulations.Circle, the publisher of USDC and Eurc, became the first global stable coin issuer to comply with MICA, and was authorized by electronic money institutions.These measures are expected to promote a safer and more transparent stable currency market, which exceeds the EU, and may even affect global regulatory standards.Therefore, the stable coin issuer who adapt to these new requirements may consolidate market share and seize the opportunity of growth in different jurisdictions.

in conclusion

In the second quarter of 2024, the pattern of digital assets was very complicated. Regulatory development, technical milestones, and market dynamics were constantly changing.The approval of Ethereum spot ETF and the progress of stabilizing coin supervision shows that institutional acceptance and regulatory clarity have continued to increase.However, the challenge still exists, including the adjustment of Bitcoin and the potential selling pressure of MT. GOX distribution.
Looking forward to the future, the key areas worthy of attention include the launch and adoption of Ethereum ETF, the influence of the sustainability of Ethereum on Ethereum and the continuous supervision of the main market.These factors, as well as a wider macroeconomic trend, are essential to decide the surrounding time of 2024 and the future of the digital asset market.