Regularly, experts, analysts, crypto-enthusiasts or even ordinary observers are targeted by an incessant flow of sometimes sensational information about the crypto industry. In this context conducive to the loss of key benchmarks, it is useful, if not crucial, to take stock of developments and trends in crypto. An approach which allows us to envisage the developments to be expected from this attractive sector where things are moving at great speed. This is essentially what we are proposing to you in this article. To get there, and for the sake of brevity, the crypto overview we are taking you on is limited to two key periods. That mainly covering the month of March and to a lesser extent that concerning April 2024.
An exciting March for crypto operationally
Word “thrilling”, chosen in the intertitle, is not there by chance. It perfectly describes what crypto was like in March 2024. A month particularly marked by key developments in almost all segments of this industry, a sign of its exceptional resurgence. Whether in terms of movements, market trends in ETFs, Layers 1 and 2, or even DeFi, March will have been singularly prolific.
First for bitcoin (BTC)
The first example to mention here is the queen of cryptos, bitcoin (BTC). In March, crypto was on fire so to speak. On March 14, 2024 to be precise, the asset reached a historic milestone by exceeding the $73,000 mark. A decisive step that follows a notable rise that began on March 4, when bitcoin exceeded $66,000.
It will cross this milestone again very quickly by surpassing the previous ATH of $69,000. Thus, the month of March was marked by a constant upward trend, with the overall increase in bitcoin amounting to 16.3% month-on-month. This surge in bitcoin highlighted an upward movement in the crypto sphere driven by the enthusiasm around the Bitcoin Spot ETFs approved two months earlier.
Next for Solana
The rise of Solana confirms this trend. March notably saw an unprecedented increase in activity around memecoins built on Solana, leading to a spike in blockchain statistics. Indeed, the influx of memecoin projects has fueled a substantial rise in trading volumes on decentralized exchanges (DEXs) operating on Solana.
As a result, trading volumes on DEXs exploded to $60.3 billion during the month. At the same time, Solana recorded a surge in the number of its active users and the registration of new tokens. This means that at the end of this 3e month of the year, Solana had 1.5 million active wallets and 3.7 million new token accounts.
Which demonstrates solid engagement from users and developers in this ecosystem. But also the preference of the latter for Solana which, through its scalability, its efficiency and its attractiveness, stands out as the most relevant blockchain. Particularly for memecoin projects and decentralized financial activities.
Finally for Ethereum
These positive reviews apply to the Dencun update which concerns the Ethereum blockchain. The month of March marked the realization of this operational advance, the most important for Ethereum, since the transition to Proof of Stake (PoS) in September 2022. Responding to the pressing problem of exorbitant transaction fees on Layers-2 of Ethereum, Dencun introduces innovative staking and validation mechanisms. Since its introduction on March 13, Dencun has enforced a key change, reducing transaction fees involving Layers-2 by up to 99%.
This update marks a turning point in the evolution of Ethereum, addressing long-standing scalability challenges and significantly improving accessibility for users and developers. By reducing gas fees to historic lows, Dencun has improved the operational efficiency of Ethereum. This, while also strengthening its position as a leading player in DeFi and blockchain.
Beyond these crypto advancesMarch 2024 attracted attention with other events that could not go unnoticed.
Notable events for the crypto industry
This will certainly not have escaped your notice. Sam Bankman-Fried, the ex-crypto tycoon, co-founder and former CEO of FTX, received 25 years in prison, far from the 150 years required against him. The verdict on Bankman-Fried's conviction came on March 28 as if to sound the death knell for a month that was, in every way, tantalizing. It must be said that this dark note for crypto has not yet stopped talking. Indeed, the spotlight is now on Sam Bankman-Fried's former collaborators.
That said, we must point out the key figures for crypto in March on a completely different note. Spot Bitcoin ETFs saw record trading volumes, surpassing $180 billion at the end of the month. This, with $9.9 billion as the highest daily volume. Additionally, net flows into Bitcoin ETFs peaked at over $1 billion on March 12, the highest level since the January 2024 launch.
However, when BTC prices underwent corrections, there were several days of net outflows, including March 19, with withdrawals exceeding $326 million. March proved to be a very active month for crypto exchanges, with spot trading volumes reaching $2.48 billion. That's a 112% increase from February, fueled by bitcoin's all-time high and increased investor interest.
What April has in store for crypto
According to Binance, the crypto market is bracing for significant changes in April, especially with the imminent advent of bitcoin halving. This event not only influences the trajectory of bitcoin, but also other important assets such as Solana among others.
Recent market movements have propelled bitcoin to new highs, hitting $73,750 before falling back down. Currently, it is hovering around $70,182. If bitcoin holds the support line at $69,715, it could rise to around $77,000, supported by anticipation of the fall. Conversely, a fall below $69,715 could lead to a regression towards $66,500, which would challenge the optimistic outlook.
In this context, Solana appears to be a formidable player, supported by booming institutional sponsorship. Surpassing Ethereum in terms of institutional appeal, it attracted $18 million in inflows this month alone. To further boost its stature, its decentralized exchange, Jupiter, takes the title of largest DEX in terms of volume. This, with a staggering monthly trading volume of $241.97 billion. SOL, its native crypto, strengthened its main support levels. From then on, a potential increase looms with projections indicating an increase of 36% to reach $250. However, breaching the $186 support threshold could precipitate a descent to $164, casting shadows over the recovery prospects.
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