CoinGecko has published its comprehensive analysis of the cryptocurrency market for the first quarter of 2024. The report highlights significant growth and new trends across various segments of the market, including Bitcoin, Ethereum, NFTs, and centralized and decentralized exchanges.
According to the report, CEXs achieved record trading volumes in Q1. They saw a combined trading volume of $4.29 trillion, the highest since Q4 2021. Although Binance dominated the overall trading volume across the market with a 50% share, other exchanges saw a notable increase. One of the most consistent growths in spot trading volume was recorded by Bitget. The exchange’s market share in spot trading increased from 3.94% in October 2023 to 4.14% in March 2024.
In March, Binance, OKX, Upbit, and Bitget more than doubled their volume from February. Bitcoin’s all-time high and the Solana meme coin rally significantly contributed to this increased trading activity across the major exchanges. Bitget also became the 4th largest futures trading platform, as the exchange’s share of the futures trading market reached an all-time high of 12% in March. Consequently, the platform’s native token BGB, also rallied throughout the month, reaching an all-time high in April.
Bitget also surpassed OKX in open interest this quarter. Open interest refers to the total number of outstanding derivative contracts, such as futures and options, that have not been settled. Binance, Bytbit, and Bitget were the top three platforms in terms of the number of open positions held by traders.
On the decentralized front, Ethereum’s share of DEX trading volume dipped below 40%, as chains like Arbitrum and Solana attracted more trading activity due to their competitive incentive structures and increased memecoin trading.
The approval of Spot Bitcoin ETFs has had a pronounced impact on the market. By April 2024, assets under management (AUM) for these ETFs surpassed $55.1 billion. Notably, BlackRock’s IBIT ETF accumulated over $17 billion in Bitcoin, becoming the second-largest Bitcoin ETF by assets. In contrast, Grayscale’s GBTC, despite experiencing $6.9 billion in net outflows, retained its position as the quarter’s largest Bitcoin ETF.
The report also highlighted the explosive growth in Solana’s meme coin market. The top 10 meme coins increased their market cap by 801.5%, reaching $9.36 billion. Dogwifhat (WIF) and Samoyedcoin (SAMO) were standout performers, contributing significantly to this surge.
Ethereum and liquid restaking protocols also gained notable traction this quarter. Ethereum saw a 36% increase in the total number of restaked ETH on EigenLayer, totaling 4.3 million. Over half of this was managed by LRTs, with EtherFi becoming the largest LRT, holding over 900k ETH and capturing a 21.0% market share.
NFT trading volume also increased across the board, but it wasn’t consistent. According to CoinGecko, monthly trading volume of the top 10 marketplaces largely increased between October and December, with OKX having the biggest market share. However, trading volume consequently dropped in January and February, as OKX experienced over 50% decline. The resurgence of Magic Eden drove the NFT market’s trading volume to its highest in the quarter in March, challenging Blur’s dominance and becoming the largest marketplace in terms of trading activity. This was largely driven by Magic Eden’s unique reward programs and its expansion to support Ethereum-based NFTs. Overall, the NFT sector saw $4.7 billion in trading volume across the top 10 marketplaces in Q1.
To sum it up, the CoinGecko Q1 2024 report provides valuable insights into the evolving cryptocurrency landscape, reflecting both the sector’s growth and the shifting preferences of market participants.
