Source: Coinbase

INTRODUCTION

Undoubtedly, 2024 promises another year brimming with unexpected developments and obstacles for the blockchain and cryptocurrency market. The crypto market showed an impressive performance this quarter. The adoption of the Bitcoin ETF and the impending halving contributed to the market's strong performance. Before the halving, Bitcoin soared to an all-time high of $73,097, regaining a 51% market share. As we conclude the first quarter of 2024, we must reflect on our progress and the unfolding events.

This article showcases notable events in the cryptocurrency space throughout the first quarter of 2024.

BITCOIN ECOSYSTEM

Bitcoin ETF:

In January, Bitcoin spot ETF was approved by the United States SEC after much delay, with talks swirling around the possibility of an Ethereum spot ETF. This move was a significant milestone as it showed the possibility of more adoption by traditional financial institutions. As of March 21, 2024, total net inflows amounted to $11.7 billion, with the iShares Bitcoin ETF (IBIT) leading at $13 billion and the Fidelity Wise Origin Bitcoin Fund (FBTC) at $6.9 billion. In contrast, the Grayscale Bitcoin Trust (GBTC) saw a net outflow of $12.7 billion during the same period.

BTC Halving:

The second Bitcoin halving is expected to take place on April 20, 2024. While there's anticipation for Bitcoin to achieve new all-time highs post-halving, it's acknowledged that reaching these milestones may take longer. There are many predictions about the price of BTC after the halving.

BTC Price:

The price of BTC jumped from $40,000+ (which it was at the beginning of the year) to attain a new all-time high of $73,000, which denotes a bullish season.

Bitcoin Layer 2s:

Amid ongoing developments in the Bitcoin ecosystem, layer 2 solutions also garnered significant attention this quarter.

ETHEREUM ECOSYSTEM

Dencun Upgrade:

On March 13th, Ethereum's Dencun update successfully implemented the EIP-4844 proposal, introducing data "blobs" and Proto-Danksharding technology. This upgrade aims to boost speeds and reduce transaction costs. As a result of this upgrade, some Ethereum layer 2 solutions experienced significant drops in gas fees, allowing them to handle more transactions at lower costs.

ETH Price:

The price of Ethereum’s native token, $ETH increased gradually from $2200 at the start of 2024 to $4000 two days before the Dencun upgrade, when it achieved a new high above $4000 for the first time since December 2021.

Ethereum ETF:

The Ethereum spot ETF is the industry's next major goal; applications from seven businesses, including VanEck, are now being reviewed by the SEC. The market anticipates that new Ethereum ETFs will be approved. The approval of the Bitcoin spot ETF, according to optimists, may open the door for Ethereum's spot ETF approval, which they project will happen in May 2024. Nevertheless, cynics worry that the SEC's move to categorize ETH as a security would make it more difficult for applications for exchange-traded funds to be accepted.

Ethereum Staking & Restaking:

Furthermore, the realm of Ethereum staking and re-staking is expanding, with EigenLayer growing to be the second-biggest DeFi protocol and locking up more than $10 billion.

SOLANA ECOSYSTEM

Meme Coin Craze:

With meme coins gaining popularity in the crypto market, Solana has overtaken Ethereum in trading volume. This shift underscores the significant impact meme currencies can have on market dynamics. Solana provides a more favorable network for token launches like meme coins than Ethereum. Due to an increase in transactions coming from Solana meme coins like $BOME, $BONK $WIF, $MYRO, etc, which raised investors’ interest and increased network activity, Solana surged above Ethereum this month. This demonstrates the Solana ecosystem's popularity as a center for creative endeavors. This also demonstrates how meme coins may have a big effect on market dynamics.

Presale Frenzy:

BOME, abbreviated for BOOK OF MEME, showcases Pepe holding a meme book. The project witnessed presale donations surpassing 10,000 SOL within 24 hours. All the funds gotten from presale were allocated to the pool, fueling a remarkable surge in value. The BOME frenzy spurred a wave of new meme coin presales on Solana, with active addresses peaking in nearly a month.

@zachxbt, a well-known Twitter scam detective released a list of over 30 meme coin presales that happened on the Solana blockchain from 12th March to 19th March following the BOME presale. The list recorded 796,000 SOL ($149M+ at the time) raised in presales.

$SOL Price:

The price of Solana’s native coin, $SOL saw an increase from $100 (at the beginning of the year) to over $200 this month. Although the coin has yet to reach or surpass its ATH, there is hope that it will happen soon.

AI NARRATIVE

Today, the artificial intelligence (AI) sector is marked by rapid innovation and a growing interest in AI tokens, particularly at the intersection of blockchain technology and AI. These tokens are revolutionizing both domains by offering decentralized solutions and leveraging AI for blockchain operations, enhancing security, efficiency, and automation. AI tokens like $WRLD have seen a surge in price recently.

DEPIN NARRATIVE

A ground-breaking combination of blockchain technology and physical infrastructure networks is represented by the DePIN (Decentralized Physical Infrastructure Networks) idea. This year, the DePIN narrative has seen significant attention, with various projects coming out of stealth mode.

GAMEFI NARRATIVE

Just this year, numerous web3 gaming projects have been launched across different blockchain networks. The launch and airdrop of PIXEL token, the native token for Pixels game launched back in 2021 paved the way for even more gaming projects to keep building.

AIRDROPS

One of the most interesting aspects of the crypto space is airdrop, often referred to as “free money.” Even though not all airdrops require zero dollars, the retroactive ones are anticipated to drop tokens worth more than the spent amount. The first quarter of 2024 saw a huge number of airdrops disbursed. Some of these airdrops had been farmed and interacted with for months. X “farmers” have gotten $50 - $30,000+ in airdrops this quarter alone. More airdrops are expected to launch in Q2 & Q3 of the year.

TESTNETS

In anticipation of their launches, many projects (layer 2s, layer 1s, DeFi protocols, games, etc) launched their testnets this quarter for users to interact with. Some of these testnets are incentivized (expected reward after the testnet phase), while some are non-incentivized (no expected reward after the testing phase, however, the team might decide to do a surprise airdrop for testers).

LOSSES IN Q1 DUE TO HACKS, RUGS & WALLET DRAINS

According to Immunefi, a web3 bug bounty and security services platform, the crypto industry has seen a loss of over $300 million in just Q1 of 2024 alone.

SBF SENTENCE: 25 YEARS IN A CELL BLOCK THAT’S NOT A BLOCKCHAIN

Sam Bankman-Fried, former founder and CEO of the now-defunct crypto exchange, FTX has been sentenced to 25 years in prison for $8 billion fraud involving users’ funds. This was announced yesterday, 28th March 2024. You can read more about it here

SUMMARY

With Q1 laying the ground for more bullish events for 2024, the crypto market is expected to be a full bloom this year.