June 2024 Recap of Digital Assets Industry

Digital assets prices dropped as trading volumes and volatility hit yearly lows, including Bitcoin (-10%) and Ethereum (-11%). Despite weak prices, daily active addresses on Layer 1 blockchains hit a new high. For example, on-chain average Daily Active Addresses (DAA) reached a new high at 11.7M, surpassing the previous high of 10.9M in May 2024. Layer 1 revenues rose (+20%) month-to-month and stablecoins on-chain increased (+1.5%), but we saw DEX volumes fall (-7.1%).

Layer 2 tokens performed worse, with prices declining more than the major L1s. However, usership continues to grow. Arbitrum, Optimism, and Mantle users have increased 358%, 73%, and 260%, respectively, since the beginning of the year.

Things were positive on the regulatory front for digital assets in June. The SEC closed its investigation into Ethereum, which means transactions of its token ETH are not considered securities. And according to a Bloomberg ETF analyst, spot Ethereum exchange-traded funds (ETF) could potentially begin trading in the United States in July.

The Australian Securities Exchange (ASX) also approved its first spot Bitcoin exchange-traded fund (ETF), the VanEck Bitcoin ETF (VBTC), which began trading on June 20. And DC federal judge Amy Jackson dismissed charges against Binance for the secondary sales of unregistered securities, citing Judge Analisa Torres’ 2023 ruling in the SEC’s case against Ripple Labs.

Lastly, Tether, the world's biggest supplier of dollar-pegged stablecoins, announced it is unveiling a new category of crypto called "tethered assets" which are collateralized synthetic digital assets. Tether is kicking off the launch of the line of digital assets by introducing aUSDT, a new token "supported by real physical gold stored in Switzerland." 

Other notable news…

- MicroStrategy buys $786M more of Bitcoin

- T-Mobile's parent company, Deutsche Telekom, announced it'll begin mining Bitcoin

- The Federal Reserve changed its expectations to one rate cut this year (from previously anticipated three)

- Tether reports record $4.52 billion net profit in Q1 2024