We're only a quarter of the way through 2024 but this year has already been a Hell of a ride for crypto with the Chapter close on q1 it's time to look Back at the pumps the dumps the memes And Ponzi schemes that have brought us To where we are today well earlier this Month one of the biggest crypto Companies dropped a 50-page q1 market Report packed with charts facts and Figures that tell a story of the year in Crypto so far We went through the report with a fine Tooth comb and today we're going to Break down some of its most important Findings and tell you what it means for The crypto Market if you want to Understand where we are in this current Cycle and also make some educated Guesses about where we may be headed Next this is a video that you don't want To Miss the report that we'll be Summarizing today was published by coin Gecko it begins with a note from its Founders the COO Bobby on and the CEO TM Lee who point out that coin gecko turned 10 this month and yes that does mean 10 Years honestly lasting 10 months in this Industry is a feat in itself so to Create a piece of crypto Market Infrastructure that is not only still Relevant but vital an entire decade Later is pretty amazing hats off and
Happy belated birthday to coin gecko Now the report itself is broken down Into seven sections the first is an Overview of the market landscape Followed by a separate analysis of Bitcoin ethereum salana Defi nfts and Finally Exchanges as you'd expect from coin Gecko each section is packed with Interesting graphs and Statistics we can't cover all of them Thoroughly here so we do suggest that You look through the report yourself We'll drop a link to it in the Description instead we'll break down our Biggest takeaways from the report for You and explain why they matter let's Get started if you've been in crypto for More than 5 minutes you'll know that It's BTC that leads the market btc's Price action can be used as a shorthand To describe the state of crypto in General for this reason we're going to Discuss the market land escape and Bitcoin analysis sections of coin Gecko's report in tandem the first Highlight shared by coin gecko is about Bitcoin's price action in Q1 btc's price is always the biggest Story in crypto and for good reason just Listen to this and I quote Bitcoin Outperformed all major asset classes With a plus 69% return in 2024 q1 Now Isn't that just a beautiful sentence
Music to our ears anyway on the topic of Other major asset classes let's just say That coin gcko is generous to our Coinless counterparts the report Acknowledges that and I quote crude oil S&P 500 NASDAQ and gold also saw strong Gains in q1 but you know they mean Strong by trafi standards so let's see How these assets did compare to to BTC After dumping by 21% last quarter crude Oil made a 16% recovery in q1 giving it The best returns among major Trad fight Assets this year in second place the S&P 500 continued its face Waring rally Gaining 11 whole per in q1 NASDAQ and Gold were next printing gains of 10 and 8% Respectively and then there's BTC up 69% in q1 after rallying 57% in Q4 2023 well each to their own I guess but Of course it wasn't up only for BTC last Quarter after the long awaited approval Of the US spot ETS on the 10th of January BDC dumped by 16% to its q and Low of $ 39,5 5 with a major Catalyst seemingly over It looked for a time like the ETFs were An anti-climatic sell the news event After all they were already priced in And we were already up way too much After that 57% rally in Q4 2023 right Wrong BDC bounced up 85% from the January low and moon passed the previous
All-time high of $69,000 set in 2021 to a new set record Of above $73,000 On the 14th of March this was Particularly remarkable because it was The first time BTC reached a new alltime High before an upcoming haling rather Than sometime afterwards by the way if You're enjoying the video so far smash The like button to give it a boost and While you're at it make sure to Subscribe and have your bell Notifications switched on so you can Catch our next video before the rest of The Pack so ma'am where exactly were you on The night of the murder I was right here Detective all night long you got anyone Who can back that up you mean an alibi Yeah that's the one no I was all on my Lonesome and what exactly were you doing All on your lonesome if you don't mind Me asking well keep it under your hat Detective but I was looking through the Coin Bureau deals page what's a coin Bureau deals page when it's at home it's Only the place where you'll find the Best discounts and Promos in all of Crypto what do you mean I mean trading Fee discounts of up to 60% and sign up Bonuses up to $60,000 on some of the Best exchanges holy smokes they got Discounts on Hardware wallets too by any Chance they sure do detective like you
Wouldn't believe well that sure sounds Kind of swell lady but just you give me One good reason why I should believe a Single word you say you don't have to Take my word for a detective take a look At the link down below and see for Yourself she wasn't kidding those deals Really were something else turns out That crypto ain't such a bad place after All you just got to know your way Around now the preing alltime high Fueled all kinds of speculation about How long the current bullish conditions Can continue and if the market can catch As L with our trousers down by topping Out sometime this year that's another Topic for another video maybe even on Another Channel but this merch at least Is clear h one was a dreadful time to be Bearish on bitcoin but it's not just the Bears who have to cope if you were Bullish on altcoins in q1 well I hope You took some profits at the right Moment that's because the overall crypto Market underperformed BTC as coin geeker Reports the total crypto Market rallied By 64.5% in q1 that's a fantastic return in General almost six times better than the S&P 5 00 however it's notably weaker Than btc's 68.8% rally and what are the out coins If not a leverage bet on bitcoin you can Take on more risk in the hope that
You'll get higher returns than with BTC But for your average altcoin investor All of the hours of research painstaking Portfolio management and risk-taking in The world couldn't outdo just buying and Holding BTC of course course if you bought and Sold into the right altcoins in the Right narratives at the right time sure You outperformed and perhaps by a lot Well congratulations if that was you but This is much easier said than done and The charts don't lie most people did not Do this and therefore would have been Better off just stacking stats the whole Time as a friend of the bureau Ben Cowen Is so fond of reminding us BTC gives you The best of the crypto Market's upside While minimizing your downside risk this Was confirmed yes again by the market Correction on April 2024 which saw BTC Pullback by at worst around 18% before Chopping around between 60 and 70k Meanwhile the same correction has Wrecked altcoin so badly that DG are Complaining that this month's Bitcoin Haring seem to have also halfed their Net worth When altcoin season Indeed now no discussion of crypto in q1 2024 would be complete without a proper Look at the US spot Bitcoin ETF and coin Gecko provides us with ample data to see Just how well they performed when the
ETFs were approved by the SEC on the 10th of January the sum of their total Assets under management was $28.6 billion this this sum was almost Wholly managed by grayscale whose decade Old grayscale Bitcoin trust was Converted in its entirety to the gbtc ETF this was a huge Head Start Over the Competition who started from scratch so It should come as no surprise that Several months after the launch of the ETFs grayscale still holds the largest Slice of the total AUM however what is remarkable is just How quickly gray scale has been losing Ground especially to Black Rock by the Start of April the AUM of all of the ETFs had almost doubled rising to 55.1 Billion this increase was mostly driven By black rocks IA ETF which mooned all The way to 17 billion AUM no doubt Helped by having lower fees than the Competition meanwhile the AUM of Grayscales gbtc dropped by $7 billion or Almost 25% during the same period this Makes it the only ETF to have seen net Outflows in q1 it doesn't help that gbtc Has significantly higher fees than its Competitors but we should also remember That gbtc predates every other ETF this Means that right out of the gates in January there were gbtc holders in Profit who were ready to sell and Perhaps to rotate into an alternative
With lower fees in response to this it Appears that grayscale is preparing to Launch another spot Bitcoin ETF this Time with an aggressively low fee of 15% if all else remains equal this new Grayscale ETF will have the lowest fees On the market after black rocks Scheduled fee increase to 25% next year The next section of coin gecko's report Covers the performance of ethereum and Salana in q1 2024 it's been a heck of a ride on both Chains this year let's start with Ethereum one of the biggest narratives On ethereum this year has been eth Reaking on Iger layer which grew by 36% In q1 bringing the total amount of eth Restate to 4.3 million in particular This year has been characterized by the Advent of liquid reaking protocols At the start of the Year igen ler was The only show in town and accounted for Basically all restate eth this is Referred to as natively restate eth but By the end of March more than half of All restate eth was not natively restate But instead held in liquid reaking Protocols this new sector has yet to be Monopolized in the same way that Leo Came to dominate liquid staking but Ethery does have a convincing lead Commanding a 21% market share with 910,000 eth Renzo and puffer are in Second and we'll have to wait and see to
Find out if any of these is ultimately Going to pull a Leo and steamroll the Competition next up we finally saw Ethereum Improvement protocol 4844 better known as the Denon upgrade This went live on the 13th of March and Was by all accounts a great success it Introduced blobs and Proto Dan Shing for The first time and if you're not sure What all of this means then you can hit Pause and get caught up with our video Explaining the dankun upgrade the link Is down in the Description the short version is that Fees on layer 2 networks like bass Arbitrum and optimism have been reduced By a factor of 10 to 100x at the same Time dun increase scalability or Transaction speed of ethereum layer 2s By a factor of 45 to 100x of course what We all really want is to lower the fees On ethereum mainnet but denune was a Major Milestone on our long journey Together and of course we have the Performance of eth which rallied 59.9% in q1 and briefly broke above $4,000 again this is an excellent return In general but it's also yet another Quarter of eth underperforming BTC Speaking of we've seen people calling The eth BTC bottom for months on air now So is the bottom finally in or are eth Maxis in for more pain coin gecko's Report doesn't speculate about this but
It's certainly something to keep an eye On in Q2 no prizes for guessing which large Capat did outperform BTC though Saul Continued the monster run it began in Late 20123 and closed q1 at $22.8 for a quarterly return of 100% not Even a 5-hour Network outage in February Or debilitating Network congestion in March could hold back so as coin gecko Points out average daily traded volume Almost doubled from 2 billion in in Q4 2023 to 3.8 billion in q1 2024 aside from the price of Soul the Biggest story on salana was of course The meme coin Mania coin G's report lays Be the true extent of degeneracy that Took place last quarter and it is Mindboggling there was almost 5,000 new Tokens launched on salana every day in Q1 2024 and then let's just say that Most of them had questionable Fundamentals of the top 10 memes on Salon at the end of q1 only two were More than 6 months old in Q alone this Shiny new top 10 rallied by 800% growing from a collective market Cap of 1 billion to 9.36 Billion looking at coin gecko's chart it Is Crystal Clear which means we all Should have bet on with went absolutely Nuts with a parabolic rally in March This s Clos q1 with a market cap of 4.6 Billion dollar this accounts for almost
50% of the market cap of sana's top 10 Memes so it looks like the hat is Staying on for the moment next up defi Coin gecko represents this category with A list of the top 100 defi related Tokens by market cap of course this is Just a fraction of the defi token tokens Out there not all of which are even Tracked on coin gecko it's also a bit of A nebulous category for example at the Time of making this video Leo State e Accounts for a third of the defi Sector's total market cap but at the Same time coin Geo doesn't include Liquid reaking tokens like a e AZ eth And rs eth in the category so are we Saying that liquid staking is defi but Liquid reaking isn't perhaps we're Nitpicking but the point is that this Category isn't quite as clear-cut as Let's say mem coins or the salana Ecosystem so a pinch of salt may be in Order when looking at the defi Statistics here at any rate the total Market cap of coin gecko's defi category Increased by 49.1% in q1 so not to be Sneezed at but you know what we're going To say next right these cryptos Underperformed not only BTC but also eth If defi was a narrative that you wanted Exposure to last quarter well probably The best play would have just been Stacking e now to get a better sense of Development in defi we should pay less
Attention to the market cap numbers and More to the total value locked across Distinct sectors like liquid staking Landing and bridges turning to coin Geo's tvl analysis we can see that these Sectors are occupy the top three spots With approximately 30 18 and 14% of Total defi tvl respectively we can also See that the overall tvl of defi Increased by 70% in q1 but we should be Careful about how we interpret this That's because tvl increase is not just An expression of increased defy activity And inflows but also a function of price Appreciation of the assets involved case In point liquid stake in tbll Rose by 73.7% in q1 to $56 Billion but if that sounds like a ton of More eth was State well think again as The report points out this increase was Mostly just off the back of E's 60% Rally in q1 and the amount of e State Actually increased by just 10.7% other highlights from the quarter Include the reaking sector pulling Almost 11x to 12.6 billion also landing And collateralized debt positions Protocols tbls faded as the bull market Made the sector's returns appear less Attractive coin gecko identifies yield Derivatives and farming protocols as Beneficiaries of this change pointing Out the tvl of these sectors doubled in Q1 it's worth pointing out though that
This Trio still accounts for under 6% of The total dii tvl while lending and CDP Take up almost 24% the final section of coin gecko's Report reviews activity on centralized And decentralized crypto exchanges in q1 While we're on the topic if you want to Buy or trade crypto on centralized Exchanges be sure to go to the coin Bureau deals page first there you'll Find tradeing Fe discounts of up to 60% And sign up bonuses of up to $60,000 on the best exchanges Exclusively for our subscribers these Deals are available for a limited time Only though so catch them while you can Now back to the report beginning with Spot traded volume on the top 10 Centralized exchanges you'll first Notice that binance is still Top Dog by A very wide margin and has reclaimed Some of the market share that it lost in 2023 it bounced from lows of around 40% Last November back to almost 50% by the End of q1 this was no doubt thanks to The conclusion of the regulatory fud That hung over binance last year with CZ Stepping down as CEO and accepting a Plea deal with the US Department of Justice in November this graph also tells us a Story of last quarter's bullish market Conditions Firstly the cumulative spot volume of q1
Was almost double that of the previous Quarter and at 4.29 trillion was the Highest quarterly volume recorded since December 2021 secondly March 2024 saw more traded Volume than January and February Combined no doubt related to BTC making New all-time highs for the first time Since 2021 last lastly we can see that Max C Shares of traded volume has been in Decline since Q3 2023 shrinking from Around 6% in October to just 2.6% in March this is remarkable considering That the global spot traded volume Increased by 460 in the same period so what can we Learn from this well if you're familiar With MEC you'll know that it's a very Active when it comes to listing new Small cap cryptos Mexi may not have the Same Blue Chip reputation of the likes Of binance or coin base yet it occupies A very important Niche giving onchain Coins the accessibility and traction That they need to get listed on bigger Centralized exchanges we can work out From this shrinking volume that wherever We are in this cycle it's clearly not The late stage Euphoria where profits From BTC and large cap cryptos are being Rotated into even riskier small cap Cryptos as seen in previous Cycles in Fact the opposite seems to be happening
With attention and liquidity being Absorbed by BTC and large cup Alps memes Included last but not least coin geko Shows us spot traded volume on Decentralized exchanges broken down by Chain now here is an interesting graph You'll notice right away the sudden Expansion and contraction of the blue Band in January and February that's Arbiter's short-term incentive program Which allocated up to 50 million AR Tokens to projects building on arbitrum In an attempt to incentivize network Activity true to its name this program So arbitrum suddenly and briefly become The biggest chain for spot trading Grabbing almost 40% of all deck volume Before plummeting to just 8% in March Significantly below the low of 13.5% that is set in October 2023 when Onchain was basically a ghost town folks If there's one thing we can learn from Q1 it's that the rotation between Narratives has been absolutely Cutthroat We're still very much in a PVP mode Especially on decentralized Exchanges now turning to E ethereum in Share of Dex traded volume it appears to Be in a medium long-term decline falling From 56% at the start of Q3 2023 to the Low of 30% by mid q1 this was certainly Exaggerated by all of the activity going To arbitrum which for what is worth is An ethereum layer too the ethereum mayet
Closed q1 with 37% of deck's spot traded Volume but we'll have to wait and see to To find out if it's going to break the Overall downtrend the other biggest Story was of course salana whose share Of volume Grew From 8.6% to 21.3% in q1 boyed by memes and airdrop Hunters we saw the same thing happen on Base albeit by a much smaller scale its Share of volume Grew From 4% to 2.38% when we zoom out and look at the Global spot deck traded volume we can See that it's more than doubled from 87 Billion in January to $190 billion in March again no doubt help by bitcoin's New all-time high there it'll be really Interesting to see from the data April Though because as you mentioned earlier This month's Market correction totally Wiped out months of gains for many Onchain coins and cause gas fees on the Ethereum main net to plummet to their Lowest level in in months so that's all Very interesting but what's the tldr and What can we expect in Q2 in q1 Bitcoin Reminded us why it's the main character In this show the flywheel of ETF inflows The bullish price action and media hype Resulted in an unprecedented prehal All-time high BTC has since called off With a retracement followed by Choy Price action in April Market s gent is Now somewhere between bored and
Downright gloomy and this has left us at A Crossroads Bitcoin will eventually break Out of its current range and then we're Either going to go up or down it's Impossible to say with certainty which It'll be and that's why we have to be Prepared for either outcome if BTC sees A larger correction in Q2 it's likely Going to be very ugly for altcoins Indeed as bitcoin's very normal Retracement in April already nuked many Of their charts beyond Recognition at the same time you'll Start to hear the word healthy a lot and Perhaps a good reason based on the Current market sentiment you wouldn't Know it but the crypto total market cap Is still up a lot the market became Extremely hot in q1 and cooling off in Q2 would most likely give us more room To run higher in the next 12 to 18 Months conversely if BTC starts to run Hard again in Q2 altcoins will Inevitably benefit and no doubt many of Us will be very happy but at the same Time such a move would lend Credence to The argument that a cycle top is coming Faster than most of us are expecting in This case it would be a good idea to Review your exit strategy so you don't End up round trip your ball market gains Ultimately only time will tell which way We're going so in the meantime keep your
Bell notifications on and the Subscribe Button thoroughly smashed that way You'll be able to catch up with our next Market update Video right that's all for today folks a Big thank you to everyone at coin gecko For this excellent report and happy 10th Birthday again if you learn something New don't forget to drop us a like so People can see the video If you think we Missed an important development from q1 Let us know about it in the comments as Always thank you so much for watching And I'll see you all next time this is Jessica over and out [Music]
