Cryptocurrency Market Review and Outlook Optimism in June 2023 Drives BTC and ETH, DeFi Market Was Stripped by Regulatory

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This article will outline the current status of the cryptocurrency ecosystem by exploring key progress in Web3 in June 2023. Before previewing the major events worth paying attention to in June, let’s take a look at the performance of the cryptocurrency, DeFi and NFT markets.

Cryptocurrency Market Performance in June 2023

In June, the cryptocurrency market rebounded slightly, with total market value increasing by 3.3%. The growth was driven mainly by a rebound in BTC as BlackRock, the world's largest asset manager, applied for a spot Bitcoin exchange-traded fund (ETF).

A wave of optimism swept the entire market, with the two giants BTC and ETH breaking the upper limit of $30,000 and $1,900 respectively. By contrast, some altcoins sold off earlier this month under the Securities and Exchange Commission (SEC).

BTC and ETH performed best in June. BlackRock unexpectedly applied for US spot Bitcoin ETF, which triggered other traditional financial institutions (TradFi) to follow suit. This move has sparked optimism and confidence in Bitcoin, as it is largely seen as a sign of legalization.

After the U.S. Securities and Exchange Commission strengthened its scrutiny, some altcoins plummeted. These include SOL, ADA and MATIC, and some major trading platforms later removed them due to regulatory considerations.

Decentralized Finance (DeFi)

The total lock-in value of the DeFi market (TVL) fell 7.7% to $44.2 billion. The TVL share composition of top blockchains remained basically unchanged, with Ethereum being 57.4%, Tron being 12.6%, and BNB Chain being 7.4%.

Ethereum’s TVL fell to $26 billion as regulatory crackdowns and scrutiny strengthened. All main chains have similar regressions. But please note that activities such as pledge and lending turn to on-chain agreements. For example, Lido's TVL rose 11.0%, while AAVE rose 8.8%. NFT trading volume fell to a new low due to weakening activity and interest in the industry. This decline has been seen as the total number of unique buyers and sellers has dropped to its lowest level this year. At the same time, as the reserve price of the well-known NFT series fell, the Nansen NFT-500 index also plummeted. These sudden price plunges have had a joint impact on the NFT lending field, resulting in bad debts in various agreements.

Event Preview

To help users stay up to date with the latest Web3 news, Binance Research has summarized the major events in the industry in the coming month and the tokens to be unlocked. Please pay close attention to these upcoming changes in the blockchain field.