2024 Q1 Crypto Industry Report: CEX Spot Volume Hits Highest Since Q4 2021

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The first quarter of 2024 marked a pivotal turning point in the evolution of the cryptocurrency industry, with record-breaking trading volumes, explosive growth in memecoins, and transformative shifts across decentralized and centralized ecosystems. Driven by macro catalysts like the approval of U.S. spot Bitcoin ETFs and rising institutional adoption, the market witnessed a 64.5% surge in total crypto market capitalization—peaking at $2.9 trillion on March 13.

This momentum wasn't just broad-based; it was amplified by specific innovations and behavioral trends reshaping investor sentiment and platform dynamics. From Solana’s memecoin mania to Ethereum’s re-staking revolution on EigenLayer, Q1 2024 laid the foundation for what could be a defining year in digital asset history.

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Bitcoin’s Record Run: +68.8% Surge and ETF-Led Institutional Influx

Bitcoin dominated headlines in Q1 2024, posting a staggering +68.8% gain and reaching an all-time high of $73,098. This rally was largely triggered by the long-awaited approval of U.S. spot Bitcoin ETFs on January 10, a regulatory milestone that opened the floodgates for institutional capital.

After an initial 16% correction to $39,505 following the ETF news—likely due to profit-taking—the market rebounded sharply with an 85% surge. By quarter-end, BTC settled at $71,247, reflecting strong underlying demand despite short-term volatility.

Trading activity also surged, with average daily volume climbing to $34.1 billion—a near 90% increase from Q4 2023’s $18 billion. This growing liquidity underscores Bitcoin’s maturation as a mainstream financial asset.

ETF Adoption Accelerates: Over $55 Billion in AUM

As of April 2, U.S.-listed spot Bitcoin ETFs held over **$55.1 billion in assets under management (AUM)**. BlackRock’s IBIT emerged as a major player, amassing more than $17 billion in BTC holdings and becoming the second-largest ETF by AUM. Its high trading volume signaled strong retail and institutional interest.

Grayscale’s GBTC, while still the largest ETF with $21.7 billion in AUM, experienced $6.9 billion in net outflows during the quarter. These outflows were driven by early investor exits and higher fees compared to newer competitors—a trend highlighting increasing competition in the ETF space.

Still, the overall inflow into Bitcoin through regulated products signals lasting structural change: Bitcoin is no longer just a speculative asset—it’s becoming part of diversified portfolios.

EigenLayer Ignites Ethereum Re-Staking Revolution

One of the most significant technical developments in Q1 was the rapid rise of Ethereum re-staking via EigenLayer, which saw total staked ETH grow 36% to 4.3 million ETH.

Re-staking allows users to reuse their already-secured ETH to validate additional protocols, enhancing security and scalability across modular blockchain infrastructures. Over half (52.6%) of this value is held by Liquid Re-Staking Tokens (LRTs), led by EtherFi, which captured 21% of the market.

Notably, EtherFi experienced explosive growth—up 2,616% over the quarter—reaching 910,000 ETH by March 31. This surge reflects growing confidence in restaking as a yield-generating mechanism and positions EigenLayer as a foundational layer for next-generation decentralized applications.

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Solana Memecoins Surge: $8.3 Billion Market Growth in One Quarter

Solana became the epicenter of memecoin innovation in Q1 2024, with the top 10 Solana-based memecoins increasing their combined market cap by $8.3 billion—an astonishing 801.5% growth.

At quarter-end, these tokens commanded a total valuation of $9.36 billion. While only two—Bonk (BONK) and Samoyedcoin—existed before Q4 2023, new entrants quickly gained traction.

Dogwifhat (WIF), launched in November 2023, surpassed BONK in early March to become Solana’s most valuable memecoin. Meanwhile, Book of Memes, launched on March 14, hit a $1 billion market cap within just two days—an indicator of intense community engagement and rapid viral adoption.

These trends highlight Solana’s unique advantages: low transaction costs, fast finality, and a vibrant developer community that thrives on cultural experimentation.

NFT Markets Rebound: $4.7 Billion in Q1 Trading Volume

The NFT sector showed signs of revival in early 2024, with the top 10 marketplaces recording $4.7 billion in transaction volume during Q1.

Blur remained the leader with over $1.5 billion in volume and a **27.6% market share**, up from 24.9% in Q4 2023. However, **Magic Eden** made significant gains—particularly in March—when it surpassed Blur with over $760 million in trading activity. This momentum was fueled by its Diamond Rewards program and strategic partnership with Yuga Labs, creator of Bored Ape Yacht Club.

Despite lingering skepticism post-2022 crash, renewed interest suggests NFTs are evolving beyond profile pictures into utility-driven digital assets.

CEX Spot Volume Reaches All-Time High: $4.29 Trillion Traded

Centralized exchanges (CEXs) experienced unprecedented activity in Q1 2024, with the top 10 platforms recording $4.29 trillion in spot trading volume—a 95.3% increase from the previous quarter.

This marks the highest quarterly volume since Q4 2021 and reflects heightened investor participation amid bullish sentiment and new product launches.

Binance retained its dominance with a 50% market share, gradually reclaiming ground after regulatory challenges in prior years. The exchange saw increased listings and project launches, attracting both retail and institutional traders.

In contrast, MEXC, known for its wide array of small-cap tokens, saw declining market share as traders focused on blue-chip assets like BTC, ETH, and SOL.

This shift suggests a maturing market where liquidity gravitates toward trusted platforms and established assets.

Ethereum’s DEX Share Drops Below 40% Amid Multi-Chain Boom

For the first time, Ethereum’s share of decentralized exchange (DEX) trading volume fell below 40% in Q1 2024—hitting a historic low of 30% in February.

While overall DEX volume reached a record $70 billion in March, much of the growth occurred on alternative chains:

These shifts indicate that while Ethereum remains the dominant force in DeFi innovation, users are increasingly embracing multi-chain strategies for better yields, lower fees, and faster execution.

Frequently Asked Questions (FAQ)

Q: What caused Bitcoin’s price surge in Q1 2024?
A: The primary catalyst was the U.S. SEC's approval of spot Bitcoin ETFs in January 2024. This allowed traditional financial institutions and retail investors to gain exposure to BTC through regulated products, triggering massive inflows and renewed bullish sentiment.

Q: Why did Grayscale’s GBTC see net outflows despite being the largest ETF?
A: GBTC faced outflows due to its higher management fee compared to newer competitors like BlackRock’s IBIT. Additionally, early investors who bought at a premium unlocked their shares post-ETF conversion and took profits.

Q: What is re-staking and why is it important?
A: Re-staking allows Ethereum validators to use their staked ETH to secure additional protocols via platforms like EigenLayer. It enhances blockchain security and enables modular architecture—making it a cornerstone of future decentralized infrastructure.

Q: How did Solana memecoins grow so quickly?
A: Solana’s fast transaction speed, low fees, and active community created ideal conditions for memecoin virality. Projects like WIF and Book of Memes leveraged social media trends and speculative trading to achieve rapid adoption.

Q: Is declining Ethereum DEX share a sign of weakness?
A: Not necessarily. While Ethereum’s relative share dropped below 40%, its absolute DEX volume still hit records in March. The decline reflects healthy ecosystem diversification rather than weakening fundamentals.

Q: Are NFTs making a comeback in 2024?
A: Yes—Q1 saw a rebound with $4.7 billion in trading volume across top platforms. Innovations like dynamic utility features, gamification, and creator royalties are helping rebuild long-term value beyond speculation.

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