2024 Q1 Crypto Industry Report: CEX Spot Trading Volume Hits Highest Level Since Q4 2021
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2024 Q1 Crypto Industry Report: CEX Spot Trading Volume Hits Highest Level Since Q4 2021
Solana memecoins surged in the first quarter of 2024, with the top 10 by market cap growing by $8.032 billion.
Navigating Web3 tides with focused insightsSource: CoinGecko
Compiled by: 1912212.eth, Foresight News
Following a strong performance in the fourth quarter of 2023, the total market capitalization of cryptocurrencies continued to rise by 64.5% in the first quarter of 2024, reaching a high of $2.9 trillion on March 13.
In absolute terms, this quarter's growth (+$1.1 trillion) was almost double that of the previous quarter (+$0.61 trillion), primarily driven by the approval of U.S. spot Bitcoin ETFs in early January, which pushed BTC to an all-time high in March.
Key Highlights
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Bitcoin rose +68.8% in Q1 2024, hitting a record high of $73,098;
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As of April 2, U.S. spot Bitcoin ETFs held over $55.1 billion in assets under management (AUM);
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Ethereum restaking on EigenLayer reached 4.3 million ETH, a quarterly growth of 36%;
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Solana memecoins surged in Q1 2024, with the top 10 growing by $8.32 billion in market cap;
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The top 10 NFT marketplaces recorded $4.7 billion in trading volume in Q1 2024, with Magic Eden currently leading in market share;
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CEX spot trading volume in Q1 2024 reached $4.29 trillion, the highest since Q4 2021;
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With increased attention shifting to other chains, Ethereum’s share of DEX trading volume fell below 40%.
Bitcoin rose 68.8% in Q1 2024, setting a new all-time high of $73,098
Bitcoin continued its upward trend in the first quarter of 2024, rising 68.8% during the period. After the approval of U.S. spot Bitcoin ETFs, BTC saw an immediate 16.0% pullback, hitting a quarterly low of $39,505. However, it then rebounded by +85.0%, reaching a new all-time high of $73,098. It subsequently retreated by 18.0%, closing the quarter at $71,247.
Regarding trading volume, average daily volume climbed to $3.41 billion in Q1 2024, up 89.8% from $1.8 billion in Q4 2023.
Bitcoin ETF AUM exceeds $55.1 billion
As of April 2, 2024, U.S. spot Bitcoin ETFs held over $55.1 billion in assets. This followed the SEC’s approval of spot BTC ETFs on January 10.
BlackRock’s IBIT ETF has accumulated over $17 billion worth of BTC, solidifying its position as the second-largest BTC ETF. In Q1 2024, it also recorded the highest trading volume among competitors.
Meanwhile, Grayscale’s converted GBTC ETF reported $21.7 billion in AUM as of April 2. The fund experienced $6.9 billion in net outflows due to profit-taking by early investors and higher fees compared to rivals. Nonetheless, it remained the largest BTC ETF in Q1.
Ethereum restaking on EigenLayer reaches 4.3 million, up 36% quarter-on-quarter
Restaking activity on EigenLayer began gaining momentum in Q1 2024, with the total amount of restaked ETH increasing by 36% to 4.3 million.
The majority of restaked ETH (52.6%) is held by Liquid Restaking Tokens (LRTs), totaling 2.28 million ETH. EtherFi holds 21.0% of the market share and grew 2,616% throughout the quarter, holding 910,000 ETH by the end of March.
Solana Memecoins surge in Q1 2024, top 10 gain $8.32 billion in market cap
The top 10 Solana (SOL) memecoins rose by 801.5% ($8.32 billion) in Q1 2024, ending the quarter with a combined market cap of $9.36 billion.
Among the top 10 Solana memecoins, only Bonk and Samoyedcoin existed prior to Q4 2023. BONK had been the leading meme coin on Solana since its launch in December 2022 but was overtaken in early March by Dogwifhat (WIF), launched in November 2023. Meanwhile, Book Of Memes launched on March 14 and reached a $1 billion market cap within two days.
Top 10 NFT marketplaces recorded $4.7 billion in trading volume in Q1 2024
In Q1 2024, the top 10 NFT marketplaces recorded $4.7 billion in trading volume. Blur remained the leading NFT trading platform, with over $1.5 billion in transaction volume. Its market share stood at 27.6%, up from 24.9% in Q4 2023. Meanwhile, Magic Eden surpassed Blur in March trading volume, exceeding $760 million, driven by its Diamond Rewards program and partnership with Yuga Labs.
CEX spot trading volume in Q1 2024 hits $4.29 trillion, highest since Q4 2021
In Q1 2024, the top 10 CEXs recorded $4.29 trillion in spot trading volume, representing a quarterly increase of 95.3%. This marks the highest quarterly volume for the top 10 spot CEXs since December 2021.
As of March 2024, Binance remained the largest CEX with a 50% market share, slowly regaining dominance throughout the quarter. During the same period, the exchange significantly increased new listings and project launches. Meanwhile, MEXC, known for offering a wide range of small-cap tokens, saw its market share decline as traders focused more on major tokens like BTC, ETH, and SOL.
Ethereum’s DEX trading volume share falls below 40% as other chains gain traction
In Q1 2024, Ethereum’s share of DEX trading volume dropped below 40%. In February 2024, its market share hit a record low of just 30%. However, despite the declining share, monthly trading volume still reached a record $70 billion in March 2024, driven by surging overall market activity.
On Arbitrum, DEX trading volume flourished in January and February 2024, driven by the STIP incentive program. At one point, its volume even surpassed Ethereum’s. However, once incentives ended in March, volume plummeted, leaving it with an 8% market share by month-end.
Other chains such as Solana and Base also experienced active quarters, with memecoins contributing significant trading volume.
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