- Market performance in the future is highly dependent on central bank policy actions and forthcoming economic data.
- In September 2024, the value of all on-chain Real-World Assets (RWAs) surpassed $12 billion.
The total market cap of the cryptocurrency market increased by 8.0% in September 2024, propelled by positive global macroeconomic trends as per the latest report by Binance Research. Market optimism was fueled by favorable U.S. job market statistics and the Federal Reserve’s decision to reduce the federal funds rate by 50 basis points to a range of 4.75% to 5%. The crypto market received a boost as well as major financial markets rallied due to these macroeconomic factors. Market performance in the future is highly dependent on central bank policy actions and forthcoming economic data.
Wrapped Bitcoin (wBTC) Maintains Strong Market Presence
Weekly transactions of wrapped Bitcoin (wBTC) hit new records recently, demonstrating the segment’s continued dominance. There are more than 20 other competitors in the market, yet it still manages to control more than 65% of the overall share. Disagreement has arisen regarding wBTC’s new custody model, which is characterized by a “multi-jurisdictional and multi-institutional” approach. The established liquidity and user inertia of wBTC have allowed it to retain a prominent place in the market, despite the fact that some users have voiced worries about trust and transparency. The rivalry is growing, however, as Coinbase’s cbBTC aims to take a portion of the wBTC market.
Ethereum (ETH) Issuance and ‘Ultrasound Money’ Status
In September 2024, the issuance rate of Ethereum hit a two-year high, reaching an annualized rate of around 0.74%. Importantly, this change further distances Ethereum from its “Ultrasound Money” storyline, which suggests deflationary traits. The rising popularity of Layer 2 (L2) solutions has eaten into mainnet activity, which has led to a decrease in network activity and a rise in ETH issuance. Broader market circumstances have also played a role.
Growth in Real-World Assets (RWAs)
In September 2024, the value of all on-chain Real-World Assets (RWAs) surpassed $12 billion (not including the stablecoin market, which is at $175 billion). This was an all-time high. With a total value of around US$9.1 billion, or over 70% of the RWA market, private credit is by far the most important factor. “Figure,” a fintech startup that provides equity-backed lines of credit, is largely responsible for this. From a starting point of $769 million in 2024 to a peak of nearly $2.2 billion in September, tokenized treasuries likewise saw tremendous development.
Cryptocurrency Hacks in 2024
Despite a steady drop in hacking occurrences since 2021, the total value lost to cryptocurrency attacks remained at US$1.3 billion as of September 2024. There has been an uptick in hacking, but the industry has taken precautions by implementing stricter security measures. Both DMM Bitcoin and WazirX, two centralized exchanges, lost around US$35 million and US$235 million, respectively, in the biggest hacks of 2024. Although the industry has taken steps to improve security, investors should still make sure their crypto assets are well-managed and stored securely, particularly when the market is volatile.
Performance of Leading Cryptocurrencies
Avalanche (AVAX) had the most monthly increase of any cryptocurrency in September 2024, at 20.1%. The unveiling of the “Retro9000” grant program, which would provide developers with US$40 million to enhance the Avalanche network in preparation for the much anticipated Avalanche9000 update, was a major factor in this. Social media activity and a tweet by Elon Musk that prompted conjecture contributed to Dogecoin’s (DOGE) substantial gains, which surged 14.9%. Important changes in its ecosystem, such as the introduction of the JamboPhone 2 and the rising acceptance of Solana by large organizations like Citibank and Franklin Templeton, caused the price of Solana (SOL) to rise 12.0%.
Following the Voltaire era’s introduction of decentralized governance mechanisms—the Chang Hard Fork—and its subsequent debut, Cardano (ADA) gained 9.3 percent. Developments on the XRP Ledger, such as the unveiling of smart contract capabilities and work on Ripple’s RLUSD stablecoin, also contributed to XRP’s 9.1% gain. The market performance of XRP was further enhanced by the successful resolution of Ripple’s litigation against the SEC.
However, Binance Coin (BNB) increased 6.9% after the Bohr Hard Fork, which brought many enhancements to enhance network performance, while Bitcoin (BTC) gained 7.5% due to global macroeconomic trends.
Conclusion
Positive macroeconomic conditions propelled the cryptocurrency sector to a robust 8.0% increase in total market cap in September 2024. The continuous growth of the cryptocurrency ecosystem is shown in the increase of RWAs and the general drop in hacking occurrences, even if Wrapped Bitcoin and Ethereum continue to dominate the market. Market players should be alert, however, since the market dynamics are still impacted by future actions of central banks and global economic situations.
