Binance released a market insight report stating that the total market value of the cryptocurrency market increased by 8% in September, mainly driven by the positive sentiment of the Federal Reserve’s interest rate cut and improving U.S. labor market data. wBTC maintains a strong market position, with weekly trading volume hitting an all-time high. ETH, on the other hand, faces the dilemma of increasing issuance rate and challenging the deflation narrative.
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ToggleCrypto market cap grows 8%, best September since 2019
The total market capitalization of the cryptocurrency market grew by 8% in September, the best September performance since 2019. Mainly driven by the positive sentiment of the Federal Reserve's interest rate cut and improving U.S. labor market data, in addition, the People's Bank of China also lowered interest rates and deposit reserve ratios to cope with deflationary pressure, injecting 1 trillion yuan into the banking system. These favorable global macroeconomic developments led to a rebound in major stock markets and cryptocurrency markets. However, future economic reports and central bank policies are still worthy of attention.
wBTC weekly trading volume reaches all-time high
wBTC continues to maintain strength in the market, with weekly trading volumes exceeding 100,000 in recent weeks, reaching all-time highs. The supply of wBTC is stable at over 152.4K, accounting for over 65% of the total wrapped Bitcoin market share. Despite facing challenges from new competitors such as Coinbase’s cbBTC, wBTC has maintained its market dominance. However, the report also mentioned that wBTC’s new “multi-jurisdiction and multi-institution” custody model raises transparency and trust issues.
ETH issuance rate rises, deflation narrative challenged
In September 2024, the issuance rate of ETH continued to rise, reaching an annualized rate of 0.74%, the highest level in two years, which moved ETH away from its previous deflationary state. The main reason comes from falling fees for Layer 2 solutions, resulting in reduced network activity. Lower transaction fees and destruction prevent ETH from continuing to deflate, resulting in an increase in daily net supply.
The supply of ETH is no longer decreasing, which challenges its Ultrasound Money narrative. This narrative aims to create a system that resists inflation while preserving purchasing power.
In order to return to its deflationary state, the ETH mainnet needs to increase activity. However, the report also points out that with the growth of L2 solutions, users are increasingly leaning toward these scaling solutions with better availability and lower costs.
RWA hits new highs
The total amount of RWA on the chain reached an all-time high of US$12 billion (excluding the stablecoin market of US$175 billion). Private credit is the largest segment of the market, accounting for approximately 70% of all RWA value ($9.1 billion), thanks in large part to a fintech company called Figure. Tokenized Treasuries have also experienced explosive growth in 2024, growing from $769 million at the beginning of the year to more than $2.2 billion in September, a growth that may have been affected by U.S. interest rates at 23-year highs (until the recent rate cut).
