Welcome to our June 2024 monthly crypto market recap!

In the past month, BTC has seen a significant decline, tumbling to $60K, while ETH has dropped to $3.3K. As a whole, the crypto market saw a decline in market capitalization to $2.4T, reflecting a bearish sentiment amongst investors. 

The bearish outlook in the immediate term could be attributed to Mt. Gox announcing plans to begin BTC repayments to creditors starting in July, a significant move that has long been awaited by those affected by the exchange’s collapse. These creditors could sell off the BTC accrued to them, bringing the price of BTC lower. Additionally, the US Securities and Exchange Commission sought $102.6 million in penalties from Ripple, addressing misinformation within the XRP community regarding its impact on demand. Elsewhere, Standard Chartered Bank is planning for a new spot trading desk for BTC and ETH, adding more avenues for cryptocurrency trading, especially for institutional investors, which turn around sentiment positively in the longer term.

On the macroeconomic front, the European Central Bank (ECB) cut its interest rates from 4% to 3.75% in response to a moderated inflation outlook and a need to stimulate the eurozone economy after nine months of high rates.​ The ECB’s rate cut reflects a shift in the ECB’s monetary policy, aimed at balancing economic growth and inflation control, which might set a precedent for other central banks in the future. 

In the United States, Joe Biden and Donald Trump are gearing up for the upcoming presidential election, with the first debate between the two candidates concluded with significant public scrutiny, setting the stage for a contentious election season. Elsewhere in the US, the Producer Price Index unexpectedly declined by 0.2% month-over-month, the most significant drop in seven months, indicating potential moderation in inflationary pressures. The Federal Reserve also projected four interest rate cuts for the next year, up from three previously anticipated, following encouragement by the US Consumer Price Index holding flat in May. Join us as we delve into the crypto market of June and uncover the stories that fueled the month’s leading performers. Stay ahead with our comprehensive monthly market recaps at Treehouse Insights and receive real-time updates with Treehouse Daily. Stay informed and adept at navigating the ever-evolving crypto landscape!

Brett (BRETT) ⏶72.10%

Brett is the biggest memecoin on the Base Chain. The Base Chain’s ecosystem is expanding, with numerous projects and applications being built on the platform. This growing ecosystem provides a strong foundation for BRETT’s success, as it allows the platform to leverage the resources and expertise of other projects in the space.

The recent listings of $BRETT on centralized exchanges such as Woo Network and Kucoin have significantly boosted its accessibility and liquidity. These listings have made it easier for a broader range of investors to buy and trade $BRETT, thereby enhancing its market presence and attracting more participation from the crypto community. The increased exposure and ease of access are key catalysts for $BRETT’s price increase, as they drive higher demand and trading volume, reinforcing its position in the market.Additionally, the addition of BRETT to the Seamless Protocol as a supply-only asset is a key catalyst for its price increase in June. This integration allows BRETT holders to earn future rewards simply by depositing the token, which enhances its utility and attractiveness to investors. By being one of the few non-stablecoins listed on Seamless, $BRETT stands out in the DeFi ecosystem on Coinbase’s Base Chain, potentially driving higher demand. Moreover, the innovative smart contract system of Seamless, which offers decentralized and permissionless lending and borrowing, adds significant credibility and exposure to $BRETT, thereby boosting its market presence and value.

Kaspa(KAS) ⏶32.24%

Kaspa is a high-speed, highly scalable transaction layer built on a proof-of-work engine, utilizing a unique blockDAG structure. Based on the GhostDAG/PHANTOM protocol, Kaspa generalizes the Nakamoto Consensus found in Bitcoin. It adheres to Bitcoin’s core principles: proof-of-work mining, UTXO-based state, deflationary monetary policy, no pre-mine, and decentralized governance. Kaspa supports high block rates without compromising security and currently operates at one block per second on its mainnet. 

The catalyst for Kaspa’s price surge in early June was largely attributed to the successful completion and announcement of its Rust language rewrite. This significant update was perceived as a major technical milestone, enhancing the network’s performance, security, and scalability. The rewrite aimed to substantially increase the number of blocks per second (BPS) to 10BPS, which is crucial for supporting the development of smart contracts and decentralized finance (DeFi) applications on the Kaspa network. Additionally, the announcement likely sparked renewed interest and confidence among investors and the broader cryptocurrency community, leading to increased demand and a subsequent rise in Kaspa’s price.

In addition, the token price surged 14.6% on 11th June with Kaspa’s token listing on CoinW. Such listing deepens token liquidity, increases accessibility and exposure to Kaspa’s native token, and strengthens the project’s credibility and trust when listed by a reputable exchange. 
On 26th June, Kaspa made an appearance at Mining Disrupt, the world’s largest Bitcoin Mining Expo. This broadened Kaspa’s exposure to the Bitcoin mining community, potentially attracting investors. It also provided an opportunity for industry collaborations and investment opportunities which positively impacted Kaspa and its native token. A day after on 27th June, Marathon Digital, a prominent player in the Bitcoin mining industry, announced that it has mined $16 million worth of Kaspa (KAS) since September, driving bullish sentiments on the Kespa token, prompting the token to further appreciate.

A Growing TON Ecosystem: Notcoin(NOT) ⏶32.06%; Toncoin(TON) ⏶22.14% 

The Open Network (TON) is a blockchain network originally developed by Telegram, and now managed by the TON Foundation. It uses a unique multi-blockchain architecture with dynamic sharding, enabling it to process millions of transactions per second. TON employs a proof-of-stake consensus mechanism and supports advanced smart contracts, making it suitable for payments, DeFi, dApps, and decentralized storage solutions. Despite early regulatory challenges, TON has evolved into a community-driven ecosystem, with significant integrations such as the TON Space wallet in Telegram and an ad revenue sharing system using TON.

Notcoin (NOT), on the other hand, is the biggest memecoin on TON. Launched as a viral Telegram game, Notcoin quickly introduced users to the Web3 space through its innovative tap-to-earn mechanic. Initially an experiment in user engagement, Notcoin allowed participants to mine tokens by interacting with a virtual coin in the Telegram app, amassing millions of users and creating a vibrant community. Despite its origins as a meme coin, Notcoin has evolved into a significant player in the blockchain space, leveraging the TON blockchain’s high transaction throughput and security features. 
This month, TON’s growth has been significantly driven by strong network fundamentals. Its Total Value Locked (TVL) has continued to see exponential growth, doubling from $330 million to nearly $700 million. Contributing to this surge, the popular USDT Wallet Earn program has been extended until the end of summer, encouraging a new wave of USDT deposits. Consequently, the USDT supply on TON has surpassed $500 million within two months of its official launch. Additionally, Binance’s integration of USDT on the TON Network, enabling deposits and withdrawals on the exchange, was also completed this month, further boosting adoption by opening TON to Binance’s immense network of investors and traders.

In addition to its TVL growth, TON has experienced a tremendous expansion in its gaming sector. The launch of Notcoin’s massive airdrop has sparked a wave of “Tap to Earn” games within the TON ecosystem, with two notable successes last month. TapSwap, which launched in February, now boasts over 50 million users globally, while Hamster Kombat has attracted at least 150 million players worldwide. Hamster Kombat has even garnered attention from governments in regions where Telegram is widely used, such as Russia, Ukraine, and Uzbekistan, with some officials labeling the Tap to Earn model as a potential Ponzi scheme and urging caution. Both TapSwap and Hamster Kombat are set to initiate their respective airdrops in July, making it crucial for investors to monitor whether these games can replicate Notcoin’s success and establish a new gaming sector within TON.
As the biggest initiator of the Tap to Earn mechanics, NOT has seen a significant surge in value as a proxy of the sector. Towards the end of the month, NOT experienced a notable increase in volume and price after burning $3 million worth of tokens and announcing a new tokenomics model. This new tokenomics allocated $4.2 million worth of the supply as incentives for Gold and Platinum users of Notcoin Explore, resulting in 94.18% of the supply being held by the community. Following this news, NOT surged by more than 16% in a single day, with some analysts remaining optimistic about further upsides for the token in the near future.

Monero (XMR) ⏶11.78%

Monero (XMR) is a privacy-focused cryptocurrency that emphasizes secure, anonymous transactions. Monero employs advanced cryptographic techniques to ensure that transaction details such as sender, receiver, and transaction amount remain confidential. 

This month, Monero has experienced a significant positive catalyst with MoneroKon 2024, an annual conference and hackathon dedicated to privacy-enhancing technologies and distributed systems. This month’s price action can also be seen as a long-term market recovery following Binance delisting Monero in February, since then Monero has been steadily increasing from lows of around $104.

Moving forward, Monero continues to face pressure from governments due to its privacy-focused nature. Regulatory bodies and law enforcement agencies are increasingly scrutinizing privacy coins like Monero because they obscure transaction details, making it challenging to track illegal activities such as money laundering and tax evasion. This scrutiny has led to some exchanges delisting Monero to comply with regulatory pressures, while others have enforced stricter Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. Additionally, some jurisdictions are considering outright bans on privacy coins to prevent their misuse.

Closing Remarks

As June draws to a close, the cryptocurrency market shines with a whirlwind of excitement and opportunity. This month has been marked by a dynamic interplay of positive market trends, progressive regulatory developments, and growing anticipation surrounding significant events.

The upcoming Mt. Gox repayments, scheduled for next month, have not dampened market sentiment. The call-to-put ratio for options expiring in 30 and 60 days remains positive, indicating that investors are maintaining a bullish outlook despite the impending repayments. This optimism suggests that the market does not expect significant selling pressure from the release of previously held Bitcoin.

Additionally, there is widespread anticipation that the Federal Reserve will implement an interest rate cut in the second half of the year. Such a move would likely provide further support to the cryptocurrency markets, as lower interest rates generally increase the attractiveness of riskier assets, including cryptocurrencies. This combination of factors — the positive options sentiment and the potential for a favorable macroeconomic shift — points to a sustained bullish trend in the crypto markets.

There are also several key events happening next month. From July 8-11, EthCC 7 will be held in Brussels. This is the largest annual European Ethereum event, featuring four days of conferences, networking, and learning opportunities focused on blockchain technology and the Ethereum ecosystem. 

As we move forward into July our steadfast commitment to exploring the dynamic realm of cryptocurrency remains unwavering. We are dedicated to providing comprehensive analysis and expert guidance through the fluid landscapes of this evolving sector. Stay tuned for our ongoing in-depth explorations of the crypto sphere through TRHX Research and the TRHX Pulse Newsletter, where we will deliver the latest updates.

Disclaimer

This publication is provided for informational and entertainment purposes only. Nothing contained in this publication constitutes financial advice, trading advice, or any other advice, nor does it constitute an offer to buy or sell securities or any other assets or participate in any particular trading strategy. This publication does not take into account your personal investment objectives, financial situation, or needs. TRHX does not warrant that the information provided in this publication is up-to-date or accurate.

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