Coinbase COIN Institutional and Glassnode, in their joint “Q4 Crypto Market Guide”, report that despite Bitcoin’s price action within the BTC/USD range over the past six months, crypto is growing and maturing. Reporting the market.
What Happened: According to their analysis, despite the lack of wild price movements, the cryptocurrency market is showing signs of sophistication through the success of spot ETFs, increased on-chain activity, and increased trading volumes.
The U.S. Spot Bitcoin ETF had over $5 billion in net inflows in the third quarter and had total assets under management of nearly $60 billion by the end of the quarter, just nine months after launch.
Ethereum ETH/USD has made progress by regaining significant market share in fees among layer 1 blockchains, rising from 9% in August to 40% in September. The report highlights that “Ethereum staking yields are more than double the real yield on 10-year U.S. Treasury bonds, making Ethereum staking an attractive investment option.”
Also Read: Bitcoin Overcomes Election Fears, Analyst Expects King Crypto to Hit $70,000 Milestone Again “In the Coming Weeks”
The stablecoin market reached a new milestone in the third quarter, with a new all-time high market capitalization of approximately $170 billion. This growth coincides with the implementation of new regulations in the EU under the Markets in Cryptoassets Regulation (MiCA), indicating mainstream adoption and increased regulatory clarity.
Bitcoin’s market cycle has followed a similar pattern to previous cycles, with the report stating, “Historical data suggests significant price increases ranging from 200% to more than 1,000% within 12 months of past halvings. “You can see it,” he said.
Coinbase and Glassnode are also taking a closer look at market sentiment, noting the change in the Fear and Greed index from greed to fear as Bitcoin trades sideways. This could be a stepping stone to a future bull market.
This finding mirrors a similar report from a16z crypto, which cited all-time highs in activity and usage and infrastructure improvements as fundamental growth drivers for the industry.
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