March 2024 Public Chain Report

*March 2024, *[email protected]

*Data Source: *Public Chain Research — Footprint Analytics

The crypto market in March was robust. Bitcoin hit a new all-time high. Ether has increased steadily, and Dencun Upgrade has significantly reduced transaction costs. The Solana meme craze has resulted in the rapid accumulation of wealth and enthusiasm, influencing others like Base to see big jumps in their value.

AI tokens, meme coins, and TON were essential elements in promoting the mass adoption of the blockchain. Public chains are doubling down on their push to expand the Web3 gaming ecosystem. Blockchain gaming is viewed as a critical enabler of mass adoption.

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

March’s crypto market thrived, largely due to expectations that interest rates would drop, despite a strong economy. This outlook raised concerns about inflation, making assets like Bitcoin and gold more attractive.

The AI sector grabbed headlines in March, with Nvidia unveiling the Blackwell GPU and GB200 Superchip at GTC 2024, igniting both US and global stock markets and generating buzz in the crypto market.

In March’s finale, Sam Bankman-Fried (SBF) received a 25-year federal prison sentence, following his fraud conviction related to the collapse of the FTX exchange and Alameda Research in November 2022. While SBF and FTX’s chapter may close, regulatory challenges persist in the crypto space. Notably, KuCoin faces legal actions from the U.S. Department of Justice and Commodity Futures Trading Commission, significantly impacting its market presence.

Public Chain Overview

As March wrapped up, the total market cap of public chain cryptocurrencies stood at $2.2 trillion, marking a 15.8% rise from February. Leading this growth were Bitcoin, Ethereum, BNB Chain, and Solana, with market shares of 63.2%, 19.7%, 4.2%, and 4.1%, respectively.

Source: Public Chain Token Market Cap Share — Footprint Analytics

Bitcoin fluctuated between “breakthroughs” and “volatility.” Kicking off at $61,213, it quickly revisited its prior peak of $69,000, then soared to a new all-time high of $73,068 by March 14th. Despite a 15.1% mid-month drawdown, dropping to $62,047, it rallied to close at $69,656. Ether’s rise was more consistent, dawning at $3,344 and closing at $3,508.

Source: BTC Price & ETH Price — Footprint Analytics

Bitcoin’s price changes were closely tied to the performance of US-listed spot Bitcoin ETFs. The close mid-month drawdown resulted from sluggish spot Bitcoin ETF inflows and traditional traders who had reduced leverage. However, excitement for Bitcoin’s halving in April kept its momentum alive.

Ether saw a steady increase, even as it lagged behind Bitcoin, as the approval of a US spot ETF appeared less probable. Dencun Upgrade, a significant network upgrade on March 13 aimed to cut Ethereum transaction costs, boosting activity within its ecosystem.

BNB Chain and Solana saw significant token price rises of 48.8% and 56.0%, respectively, leading to an approximate 1% increase in their market cap share for the month.

Source: Public Chain Token Market Cap and Price — Footprint Analytics

In March, AI crypto tokens experienced significant growth. The reinstatement of Sam Altman as director of the OpenAI Board, after firing and rehiring, positively influenced AI-related tokens. Additionally, anticipation around Nvidia’s GTC conference further fueled the hype, benefiting projects announcing their participation. Notably, NEAR saw its token price and market cap soar by 84%.

The widespread use of AI applications has played a significant role in familiarizing people with AI, making the concept of “AI + Crypto” more accessible and acceptable. This growing interest in AI-related tokens contributes to the broader adoption of cryptocurrency.

Memes have also been a significant force behind mass adoption in the crypto world. Recently, Solana captured attention with a surge in meme-related activity, with tokens like $BOME and $SLERF experiencing rapid price increases and drawing substantial community engagement. This phenomenon showcases the potential for swift wealth generation, fostering a widespread FOMO sentiment across the market. Memes serve as an accessible entry point, breaking down barriers and encouraging more people to explore the Web3 space.

Memes

The Open Network (TON) has significantly impacted mass adoption, particularly with Telegram’s Ad Platform expansion to almost a hundred new countries in March. This move, part of Telegram’s monetization strategy, allows public channel owners to earn 50% of ad revenues, with transactions exclusively conducted in TON. This development has spurred a surge in TON activity. Toncoin’s price and market cap doubled in March and reached all-time highs. Leveraging Telegram’s vast user base and the seamless integration of dApps, TON simplifies Web3 access. Combined with Telegram’s marketing prowess, TON’s ecosystem is poised to be a pivotal force in blockchain’s mass adoption.

The Open Network (TON)

The public chain sector concluded March with a TVL of $81.3 billion, led by Ethereum, Tron, and BNB Chain.

Source: Public Chain TVL Ranking — Footprint Analytics

Solana’s TVL experienced a significant leap, reaching $3.59 billion — double its February figure. It was driven by the meme hype that fueled online activity and attracted considerable capital inflow. DeFi dApps on Solana, such as the DEX aggregator Jupiter, drew substantial interest and user engagement.

Layer 2

The crypto market’s growth, coupled with the Dencun Upgrade, propelled Ethereum Layer 2s to new heights in online activity and TVL. Arbitrum One and Optimism led with TVL increases of 26.4% and 7.2% respectively, capturing roughly 70% of the market share.

Base’s TVL soared by 87.3%, accompanied by a 29.6% rise in active users(wallets), driven by the allure of Meme coins like $DEGEN. This surge in activity within its ecosystem was further bolstered by Coinbase’s introduction of a smart wallet. Leveraging account abstraction, this innovation simplifies user onboarding with touch ID or Google account integration, greatly enhancing Base’s user acquisition efforts.

Source: Ethereum Layer 2 Overview — Footprint Analytics

Post-Ethereum’s Dencun Upgrade in March, Layer 2s saw a dramatic reduction in average transaction fees. Arbitrum and Starknet slashed costs by over 95%. This significant decrease ushers in the “1 cent” era for transaction fees within the Ethereum ecosystem.

Source: Arbitrum Daily Transactions & Avg. Transaction Fee — Footprint Analytics

The discussion around Layer 3 technology has heated up, with key figures weighing in. Polygon Labs CEO Marc Boiron recently questioned the need for Layer 3, explaining Polygon’s decision against pursuing its development. Meanwhile, Ethereum co-founder Vitalik Buterin clarified that Layer 3 networks aren’t primarily designed for scaling. Instead, they’re meant to provide “customized features” to enhance Layer 2s.

For more information on Web3 Gaming, public chain funding events, and other public chain development updates in March 2024, please visit this link or www.footprint.network.

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