May 13

April 2024 Public Chain Update: Bitcoin Halving, Market Declines, and Key Advancements  

May 2024, [email protected]

Data Source: Public Chain Research Page

April saw important developments in the crypto market amid changing economic conditions. The Bitcoin Halving on April 20th lowered the network’s issuance rate, while broader market downturns led to a decline in the price of Bitcoin and the top 25 chain cryptocurrencies. Meanwhile, TON experienced significant growth, moving up to 5th in market cap, surpassing both Cardano and Avalanche. Despite the broader challenges, Ethereum Layer 2 solutions faced downturns, but Base maintained its development momentum.

Data for this report was obtained from Footprint Analytics’ public chain research page — an easy-to-use dashboard containing the most vital stats and metrics to understand the public chain industry, updated in real-time.

Crypto Macro Overview

Overall, industry trends remained positive in April. The Bitcoin Halving on April 20th reduced the network’s issuance rate, while U.S. senators proposed a bipartisan bill for stablecoin regulation, signaling potential clarity in the regulatory landscape. Also during the month, former Binance CEO Changpeng Zhao was sentenced to four months in federal prison for anti-money laundering violations, signaling clearer legislation in the centralized exchange sector.

Despite recent quarterly gains, Bitcoin’s price fell in April. This reflected a broader downturn in market sentiment. Public statements from US Federal Reserve officials suggested diminished prospects for interest rate cuts, aligning with strong economic indicators such as payroll employment and CPI. Furthermore, Uniswap Labs and Consensys received Wells Notices from the SEC, highlighting impending regulatory challenges for decentralized finance projects.

Public Chain Overview

As April concluded, the total market cap of public chain cryptocurrencies was $1.9 trillion, a 13.6% decrease from March. Leading the market were Bitcoin, Ethereum, BNB Chain, and Solana, with market shares of 64.0%, 19.7%, 4.8%, and 3.1%, respectively.

Source: Public Chain Token Market Cap Share

Bitcoin achieved a new all-time high of $73,068 in March but saw a decline through April, with its price dropping from $71,229 at the start of the month to $63,839 by the end. This 10.4% decrease in value can be attributed in part to outflows from US-listed spot Bitcoin ETFs.

Ether experienced a downturn in April, closing the month at $3,215, down from an opening price of $3,643. This 11.7% decrease may have been influenced by investor uncertainty regarding the prospects of an ETF approval for Ether in the U.S. market.

Source: BTC Price & ETH Price

Influenced by broader market trends, the top 25 cryptocurrencies by market cap experienced declines in both token prices and market caps. BNB’s market cap fell by 4.6%, while SOL’s price dropped by 30.6% and its market cap decreased by 36.6% from March’s peak.

Meanwhile, TON continued its rapid development, with its token rising to 5th in market cap, surpassing both Cardano and Avalanche. Supported by a large user base from Telegram and successful events at TOKEN2049, coupled with supportive ecosystem policies, TON’s on-chain activities continued to increase.

Source: Public Chain Token Market Cap and Price

The TVL in the public chain sector reached $76.0 billion at the end of April, marking a 6.5% decrease from March, with Ethereum, Tron, and BNB Chain leading the way.

In the AI+infrastructure sector, Near saw a 6.4% increase, maintaining its position as a leading project. Meanwhile, TON experienced a significant rise of 69.4%.

Source: Public Chain TVL Ranking

Despite broader industry challenges, the Bitcoin ecosystem remained dynamic and was a focal point at major events like the 2024 Hong Kong Web3 Festival and TOKEN2049. Several projects within this ecosystem secured new funding rounds, with more details provided later in this report. Moreover, Core Chain launched non-custodial staking, which significantly boosted its on-chain activities in April.

Source: Daily Transactions on Core Chain

Layer 2

In April, Ethereum Layer 2 solutions reflected the broader crypto market’s downturn and uncertainties regarding Ether ETF approvals in the U.S., leading to overall declines. Arbitrum One saw a 19.0% reduction in its TVL, while Blast and Starknet dropped by 10.3% and 43.6%, respectively.

Conversely, Linea experienced a 43.0% increase during its “Linea Park” Web3 gaming event, and Base saw a 14.1% rise in TVL.

Source: Ethereum Layer 2 Overview

Base continued its rapid development, with the Dencun Upgrade significantly reducing gas fees. Support from Coinbase has expanded its user base. In April, Base introduced a governance and revenue-sharing framework with Optimism that was well received. Additionally, the popularity of meme coins and social dApps contributed to Base’s growth, setting a successful example for other crypto platforms.

Recent developments include HashKey Group’s announcement of its upcoming Ethereum Layer 2 solution, HashKey Chain, following its new exchange launch. OKX also introduced X Layer, a ZK Layer 2 built with Polygon CDK.

Furthermore, more than 40 Ethereum Layer 2 projects are in the pipeline, including World Chain by Sam Altman’s Worldcoin, highlighting significant industry participation.

World Chain

For additional details on Web3 Gaming, public chain funding events, and other developments within public chains in April 2024, please visitwww.footprint.network or follow this link for more information.

____________________

What is Footprint Analytics?

Footprint Analytics is a blockchain data solutions provider. It leverages cutting-edge AI technology to help analysts, builders, and investors turn blockchain data and combine Web2 data into insights with accessible visualization tools and a powerful multi-chain API across 30+ chains for NFTs, GameFi, and DeFi.

Product Highlights: