Welcome to our May 2024 monthly crypto market recap!
In the past month, the cryptocurrency market has seen a significant recovery, highlighted by Bitcoin’s price climbing back to $69K and Ethereum reaching $3.9K. This resurgence was primarily driven by the unexpected approval of multiple Ethereum ETFs by the U.S. Securities and Exchange Commission on May 23, 2024. This approval included major firms such as BlackRock, Fidelity, and Grayscale, signaling increased institutional interest and regulatory clarity in the crypto space. The SEC’s decision to approve these ETFs has bolstered investor confidence, potentially leading to a substantial inflow of capital into the market once the ETFs begin trading after the final S-1 forms are approved.
In other developments, former U.S. President Donald Trump emphasized the necessity for the United States to lead the cryptocurrency industry, rejecting the notion of settling for “second place.” In a May 25 post on Truth Social, Trump expressed his strong support for the burgeoning crypto sector and criticized President Joe Biden’s stance on the matter. In addition, Trump has also become the first US president to be convicted of felony crimes. With the New York jury’s decision on May 31, Trump was found guilty of all 34 charges in a scheme to illegally influence the 2016 election with a hush money payment.
On the macroeconomic front, however, the latest Federal Reserve minutes indicate that officials are not in a hurry to cut interest rates, with many questioning if current policies are sufficiently restrictive. This cautious approach stems from persistent inflation concerns, as highlighted by Fed officials like New York Fed President John Williams and Boston Fed President Susan Collins, who emphasized the need for more evidence of a downward inflation trajectory before easing policies. Meanwhile, Treasury Secretary Janet Yellen noted that higher interest rates complicate efforts to manage U.S. borrowing needs, showing the importance of increasing revenue in negotiations with Republicans. Come along as we explore the intricate market in May and the narratives that drove the gains behind the month’s top performers. Additionally, keep up-to-date with our comprehensive monthly market recaps at TRHX Research and receive real-time updates with TRHX Pulse. Stay informed to navigate the twists and turns of the crypto landscape!
The Memecoin Frenzy: Pepe (PEPE) ⏶141.69%; FLOKI (FLOKI) ⏶73.96%; Bonk (BONK) ⏶67.00%
Memecoins are a special type of cryptocurrency that usually originates from internet memes and gain popularity through social media and community support rather than their underlying technology or business use case. Specifically, PEPE and FLOKI are examples of memecoins that operate on the Ethereum network, while BONK is a memecoin on the Solana network.
The prices of these tokens first surged an average of roughly 30% during the start of May following a report published by Franklin Templeton Digital Assets highlighting the continued adoption of the memecoin industry on May 2, and Justin Sun mentioning the importance of memecoins in building communities in the digital asset industry during Token2049 on May 1. These gains were followed by another surge with the resurgence of “Roaring Kitty” on May 13, the personality behind the Gamestop stock saga in 2021.
Several other events formed the impetus for the specific price increases in these projects. For instance, FLOKI experienced several bullish events in mid-May including their partnership with Revolut, listing on Binance Thailand, launch on Binance pay with a dedicated page exclusively for FLOKI payments, and a DAO proposal to burn $2.8M worth of FLOKI tokens. These events resulted in the price of FLOKI surging by 35.9% from May 13 to May 15 with more utility provided for token holders and enhanced credibility through the association with reputable digital asset institutions. Investors have witnessed steady growth since the team unveiled the project’s 2024 roadmap earlier this year. Looking ahead, they can anticipate FLOKI’s aim to transcend its current memecoin status. This expansion includes the implementation of staking, the introduction of FLOKI debit cards and a digital bank, alongside the flagship utility product, Valhalla.
Bonk, on the other hand, also saw significant price increases from May 18 to May 19, coinciding with their participation in EDC Las Vegas. Such events have historically been shown to be a catalyst to a project’s token price through improved community sentiment and an inflow of new holders.
The Surge of ETH Betas Following the ETF Approval: Ondo Finance (ONDO) ⏶66.39%; Uniswap (UNI) ⏶55.36%; Aave (AAVE) ⏶31.53%;
ONDO, UNI, and Aave are governance tokens that provide voting rights within their respective DAOs, where token governance determines crucial parameters such as fees and implements upgrades for optimal performance and reliability. Ondo Finance, Uniswap, and Lido lead their sectors, commanding over $460M, $6B, and $13B in TVL respectively.
The main catalyst for the recent price appreciation is the approval of ETH spot ETFs on May 23, a significant win for the cryptocurrency industry. Nine issuers, including VanEck, ARK Investments/21Shares, and BlackRock, anticipate launching ETFs tied to Ether, following the earlier approval of Bitcoin ETFs. Consequently, capital has flowed into major ETH betas, driving significant increases in the native tokens of Ondo Finance, Uniswap, Lido, and Aave as the largest RWA, DEX, Liquid Staking, and Lending Protocols on Ethereum.
Pendle (PENDLE) ⏶62.83%
Pendle is a protocol that enables the trading of future yields. By creating a novel AMM that supports assets with time decay, Pendle gives users more control over future yield by providing optionality and opportunities for its utilization. PENDLE is the native token of the Pendle Finance ecosystem and serves two primary functions, incentives and governance. Users that provide liquidity to the platform are rewarded in PENDLE and a percentage of the trading fees. PENDLE can also be staked in exchange for vote-escrowed PENDLE (vePENDLE), which enables holders to vote on proposals and boost their rewards.
The anticipated release of Pendle v3 has been a key catalyst for the significant price increase during May 2024. This upgraded version introduced new features and improvements that will enhance user experience and protocol efficiency. These advancements include enhanced yield farming capabilities, improved liquidity provisioning, and streamlined user interfaces. As a result, the market has responded positively, driving up the demand and price of Pendle tokens as investors anticipate greater utility and adoption of the Pendle platform.
Lastly, the listing of Pendle (PENDLE) on INDODAX in May 2024 may be another significant catalyst for the token’s price increase. Being listed on a major cryptocurrency exchange like INDODAX has enhanced Pendle’s accessibility and liquidity, attracting a larger pool of investors and traders, especially in Indonesia. This move has not only increased the token’s trading volume but also bolstered its market visibility and credibility.
JasmyCoin (JASMY) ⏶58.62%
JasmyCoin (JASMY) is a cryptocurrency project of a Tokyo-based Internet of Things (IoT) provider Jasmy Corporation. As a system, the Internet of Things includes mechanical and digital elements endowed with an identifier and the ability to transmit data. The IoT company Jasmy specializes in buying/selling data, and the Jasmy platform connects two categories: service providers and data users.
In May 2024, the rising adoption and interest in the Internet of Things (IoT) data marketplace are key drivers behind JasmyCoin’s growth. JasmyCoin empowers users to control and monetize their IoT data by selling it to companies via its platform. This strategic positioning within the IoT sector has garnered significant attention and investment, particularly in Japan, where the IoT economy is more advanced and influential as compared to other regions. Japan’s strong investment in the IoT industry fuels the broader appeal and growth potential of JasmyCoin.
Thorchain (RUNE) ⏶37.11%
RUNE is the native token of the THORChain decentralized liquidity protocol, enabling crypto asset exchange across multiple networks without relying on bridging solutions. As a critical component of the THORChain ecosystem, RUNE serves as both a staking and security asset. Users can stake RUNE to gain rewards by upholding network security, where RUNE acts as collateral to deter malicious actions. THORChain’s ultimate ambitions are to develop seamless inter-blockchain swaps, positioning the platform as a potential leader in decentralized cross-chain solutions.
As one of the main catalysts for the month, Thorchain’s CEO has outlined the strategic goal of the protocol: to create a secure and high-yield environment to boost Total Value Locked (TVL). Key initiatives include addressing UX challenges in liquidity provision and enhancing TVL protection through economic measures ($Bond), functional tools (node tools), and procedural safeguards (testing, Stagenet, THORSec). The CEO emphasized the need for monetization strategies to generate revenue from TVL to cover yield and security expenses, with a focus on maximizing the number of swaps on the platform to drive revenue and sustainability. This comprehensive approach is designed to enhance user confidence and drive adoption, which garnered optimism among investors as it provides a clear roadmap for Thorchain with a target of reaching a $1 billion TVL milestone.
Render (RNDR) ⏶35.45%
Render Network ($RNDR) is a pioneer in decentralized GPU rendering, using blockchain technology to tap into unused GPU capacities worldwide. This allows digital artists and creators to render complex projects efficiently and affordably, making high-quality rendering accessible to more people. Users pay for rendering services with the RNDR token, while node providers earn tokens for offering their GPU power.
May has been a strong month for RNDR, with notable price increases driven by sector-wide enthusiasm following Nvidia’s impressive earnings, highlighting growth in AI and blockchain technologies. In addition, the token received significant interest from whales, and partnerships with major players like Apple have boosted confidence in its future. Its integration with OpenAI’s GPT-4o model has further enhanced RNDR’s growth this month. Render Network is also making strides in governance and community involvement, with key votes on proposals to adjust node emissions and introduce new rewards to improve network efficiency and scalability.
Closing Remarks
As May 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 on-chain events.
Looking ahead, the implementation of the Markets in Crypto-assets (MiCA) regulation by the EU in June aims to enhance investor protection, ensure financial stability, and foster innovation in the crypto space. This comprehensive framework is expected to create a clearer regulatory environment, potentially attracting more institutional investors to the market. Additionally, the anticipation of potential rate cuts by the Federal Reserve later in the year remains a significant macroeconomic factor. While the exact timing is uncertain, any indications of a shift from the current tightening policies could boost risk assets, including cryptocurrencies, by making them more attractive compared to traditional investments.
Going forward, our steadfast commitment to delving into 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 the Treehouse Daily Newsletter and Treehouse Insights Research, where we will deliver the latest and most enlightening updates. This dedication underscores our position as a vital resource for deciphering the intricacies and potential within the continually shifting crypto market.
Disclaimer
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