The notable surge may have been driven by key developments across various sectors.
By Mayowa Adebajo
Edited by Julia Sakovich
Updated
3 mins read
In October 2024, the crypto market saw a 2.8% surge in its total market capitalization. While this was not exactly a big boom, the increase reflects the usual upward trend that has now almost become synonymous with the month.
According to the latest Monthly Market Insights Report from Binance, the notable surge may have been driven by key developments across various sectors. Binance also noted strong Bitcoin BTC $95 998 24h volatility: 0.6% Market cap: $1.90 T Vol. 24h: $90.35 B inflows as well as the growing interest in meme coins as the major factors behind the month’s impressive turnout.
More capital flowed into Bitcoin in October, especially with the rise in BTC spot exchange-traded funds (ETFs). This helped to push its price higher. However, an interesting trend that Binance observed in its report was Bitcoin’s correlation with the S&P 500 traditional equity. Historically, Bitcoin’s performance has often been independent of the stock market, with occasional brief correlations sparked by events such as interest rate changes. However, the current correlation has been more sustained. This means that investors may now have a different perception of Bitcoin. That is, with many seeing it as something to buy not only when willing to take risks for higher returns but also as a hedge against economic uncertainties. From the look of things, it might be safe to say that, for now, Bitcoin has fully taken on a dual role function.
A big development that came with the month of October was the surge in meme coin activity. As Binance highlighted in its report, four of the top five altcoins by performance were meme tokens.
So far this year, meme coins have doubled their share among the top 50 altcoins, after going from 6% to 12%. On some days even, this number has exceeded 20%, showing the growing popularity of these tokens and their market.
To put the above statement into perspective, since February, meme coins have reportedly recorded an average daily trading volume of about $5 billion.
Interestingly, much of this activity has centered on the Solana blockchain, which now hosts the majority of new token launches. The meme coin launchpad pump.fun comes to mind in this regard. The platform has made creating new tokens a lot more accessible, hence the massive trading activity on Solana.
For example, in the week ending October 21, Solana saw a record 90.6% of all new token launches. Without a doubt, this means that the platform’s leading position in the meme coin ecosystem is under no questions at least for now.
The Binance report also notes a growth in revenues earned by on-chain applications. Of the top 15 revenue-generating blockchain projects, 13 were applications rather than infrastructure networks. From this, one may easily deduce that a major portion of the crypto industry’s revenue may potentially go to applications even as user adoption increases.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.
