Key On-Chain Metrics Reveal Buoyant Market in March

In March, the crypto market saw significant adjustments, with overall metrics continuing to surge and reaching new all-time highs. On-chain volume increased 59.3%, with Ethereum seeing the highest rise in volume. Decentralized exchanges flourished, and Solana emerged as a hub for memecoins. Stablecoin volume spiked, indicating increased interest in DeFi. The month witnessed a surge in cryptocurrency trading, particularly in spot and futures markets. Bitcoin miner revenue soared, and over 543 million USD worth of ETH was burned. Notably, Grayscale and BlackRock continued to accumulate BTC, while Genesis sold a significant amount of BTC to cover liabilities.

March Market Wrap-Up: Key On-Chain Metrics and Trends

March concluded with a flurry of market adjustments. In this comprehensive on-chain analysis, we delve into data compiled by The Block to gain insights into the market's recent trajectory.

On-Chain Market Indicators for March

March witnessed a surge in key on-chain metrics, with several reaching new all-time highs.

• Total adjusted on-chain volume surged by 59.3% to $587 billion, with BTC and ETH contributing significantly with increases of 59.5% and 59.1%, respectively.
• Decentralized exchanges (DEXs) continued their growth, capitalizing on Ethereum's diminishing dominance as funds flowed towards alternative ecosystems. Solana emerged as a hub for memecoins like WIF, BOME, and SLERF.
• Following its launch, Base saw a surge in activity. Uniswap on Base achieved a daily trading volume of $521 million and a total value locked (TVL) of $1 billion. The proportion of new tokens listed on Ethereum dropped to 2%, while Solana and Base captured 43% and 38% of the market share, respectively. Base's emergence as a memecoin hub marked a significant shift.
• Stablecoin adjusted on-chain volume increased by 41.3% to $893.8 billion. Circulating supply grew by 6.2% to $137.4 billion, with USDT and USDC maintaining a dominant market share of 76.3% and 19.7%, respectively.
• Stablecoin trading volume on Ethereum reached $745.1 billion, a decrease compared to the previous year amid rising activity on DEXs. On-chain transactions increased by 25%, reflecting growing interest in DeFi. Notable stablecoins like DAI experienced a surge, while new entrants such as PYUSD, USDe, and FDUSD gained attention.
• March witnessed a significant wave of crypto trading, with spot trading volume hitting $2.48 trillion and BTC futures volume reaching $2.45 trillion. ETH futures volume stood at $1 trillion, and BTC futures open interest reached $29 billion. Exchanges like Binance and Coinbase International saw intense competition in the futures market, contributing over $6 trillion in daily trading volume.

Revenue and Token Dynamics

• Bitcoin miner revenue surged by 44.9% to a record $2.01 billion, while **ETH staking revenue** rose by 44.5% to $309.3 million.
• **A total of 147,620 ETH, equivalent to $543 million, was burned during March.** Since the implementation of EIP-1559 in early August 2021, 4.23 million ETH, or $11.84 billion, has been destroyed.
• Monthly trading volume on Ethereum NFT marketplaces declined by 3.6% to $726 million.

Spot Trading Developments

• Spot trading volume on centralized exchanges (CEXs) soared by 115.8% to $1.44 trillion, showcasing a marked contrast between 2022 and 2023.
• Binance maintained its dominance in the spot trading market, capturing 78.5% of the share, followed by Coinbase with 10.9%, Kraken with 3.4%, and LMAX Digital with 1.3%.

BTC ETF Spot Fund Flows

• Grayscale currently holds 329,565 BTC ($22.35 billion).
• iShares Bitcoin Trust (BlackRock) continued its accumulation, with holdings now exceeding 257,281 BTC, valued at $17.45 billion.
• Recent heavy selling pressure on Grayscale's GBTC was attributed to Genesis selling 32,000 BTC ($2.1 billion) over the past three weeks due to its bankruptcy and the need to compensate Gemini Earn victims. The redeemed BTC was sent to two Bitcoin wallets labeled on Arkham Intelligence.
• Genesis settled with Gemini to repay approximately $2 billion to an estimated 232,000 affected users. Genesis has since completed its BTC sales.
• ARKB experienced two non-trading days and two days with negative netflow this past week.

Conclusion

March 2023 marked a significant period for the cryptocurrency market, characterized by surging on-chain volumes, the rise of DEXs and memecoins, stablecoin growth, and robust trading activity. The data from The Block provides valuable insights into the underlying trends and dynamics shaping the market. As we navigate the ever-evolving landscape, it remains crucial to stay informed and monitor key metrics to identify potential opportunities and risks.