Blockchain Snapshot | September 2023

In recent times, major cryptocurrencies have undergone a downturn, influenced by statements from the Federal Reserve signaling potential interest rate hikes by the end of the year. These remarks suggest that elevated interest rates might prevail for an extended duration.

According to the London-based research firm CoinDesk Data , as of September 2023, the total monthly volumes across both spot and derivative markets plummeted to $1.4 trillion, marking a 60% reduction from September 2022. The spot markets bore the brunt, registering a staggering 70% drop in volumes at $272 billion, while derivative volumes retreated by 60% year-on-year, totaling $1.1 trillion.

Meanwhile, the U.S. Securities and Exchange Commission (SEC) deferred its decision on greenlighting Bitcoin spot exchange-traded funds once again, despite congressional pressures.

Binance, which accounts for almost half of all cryptocurrency trading volume, has recently made over 1,500 of its staff redundant and has observed numerous executive exits. The SEC has leveled accusations at Binance and its co-founder, Changpeng Zhao, for contravening U.S. regulations and poor custodianship of user assets. The Department of Justice is also scrutinizing Binance, hinting at possible criminal allegations. Subsequently, Binance.US has reported a 70% dip in its annual revenue, as conveyed by its CEO, Brian Shroder.

On September 14, House Republicans introduced the Central Bank Digital Currency Anti-Surveillance State Act. This legislation aims to prevent the Federal Reserve from introducing a digital version of the U.S. dollar, echoing concerns about unchecked government access to citizens' data.

JPMorgan's digital banking branch in the U.K., Chase UK, announced a forthcoming ban starting October 16 on cryptocurrency transactions via debit cards or outbound bank transfers. This is a direct response to the mounting crypto-related frauds, reinforcing client protection.

September 2023 spotlighted Chainlink Labs , TRON DAO , and Immutable -X as the primary market cap achievers, registering growths of 40.34%, 18.09%, and 15.14% respectively. Although the market experienced a significant market cap spike on October 1, it receded, possibly due to overarching macroeconomic pressures.

September was notable for Sui Foundation and Tron, which recorded impressive Total Value Locked (TVL) surges of 44.23% and 20.03% respectively. Sui is rallying after a lukewarm debut in May, marking its second consecutive month of TVL growth. Conversely, Filecoin Foundation grapples with an 85.84% MoM decline, amidst growing unrest within its community.

In September 2023, cryptocurrency market participants turned their focus to macroeconomic indicators and influential figures. Awaiting Fed Chair Jerome Powell's October 2nd roundtable insights and the U.S. Labor Department's September jobs report on October 6, the crypto community was on high alert for potential market-shifting revelations.