In September 2024, the crypto market grew by 8%, outperforming traditional assets like gold and stocks, largely due to favourable global economic policies.
A key driver was the U.S. Federal Reserve’s decision to cut interest rates by 0.5%, which boosted investor confidence. China’s economic stimulus, with the People’s Bank of China injecting $33 billion to ease deflationary pressures, further supported the market’s rise.
Decentralised finance (DeFi) saw significant growth, with Total Value Locked (TVL) increasing by 9.6%. Leading performers in September included Sui, Base, and Sei, with Sei achieving a 102% TVL rise. In contrast, the NFT market continued to decline, with trading volumes dropping by 21.2% in Q3.
Despite crypto’s strong September, Q3 overall was relatively muted, with the Bitwise 10 Large Cap Crypto Index dropping by 3.5%. However, crypto still outpaced traditional assets year-to-date, with Bitcoin returning 49.21% in 2024, compared to gold’s 27.71% and U.S. equities’ 22%.
Noteworthy developments in Q3 included the SEC’s approval of Ethereum ETFs and Morgan Stanley allowing wealth managers to purchase Bitcoin exchange-traded products. Stablecoin issuer Tether also reported profits exceeding those of BlackRock during the quarter.
Despite a 61.61% drop in net revenue for leading blockchains, upcoming U.S. elections, pro-crypto legislation, and continued investor interest in crypto ETFs are expected to be positive catalysts for the market in Q4.
