September 2024 Market Recap

Welcome to our September 2024 monthly crypto market recap!

In the past month, crypto markets have seen a recovery following many favorable events. On the macroeconomic front, the Federal Reserve has made a significant move by cutting interest rates for the first time in four years, implementing a surprising reduction of 50 basis points—double the typical 25 basis points. This bold action has triggered a surge in higher-risk assets across the board, with the traditional stock market, led by the S&P 500, reaching a new all-time high. The positive momentum in equities has also extended to the crypto market, which has followed suit with notable gains.

Meanwhile, the crypto market has made significant strides in adoption, particularly on the institutional front. One notable development has been the increasing visibility of World Liberty Financial, a protocol backed by Trump and his family, which has garnered headlines multiple times and even announced plans for a token release. This high-profile backing is expected to draw further attention to the crypto space. Additionally, the recent approval of options on BlackRock's Spot Bitcoin ETF by the SEC represents a major milestone, offering traditional finance (TradFi) investors enhanced investment options to gain exposure to cryptocurrencies. These advancements reflect a growing acceptance of digital assets within the institutional investment landscape, further solidifying the foundation for future growth in the sector.

Join us as we delve into the crypto market of September and uncover the stories that fueled the month's leading performers. Stay ahead with our comprehensive monthly market recaps at TRHX Research and receive real-time updates with TRHX Pulse. Stay informed and adept at navigating the ever-evolving crypto landscape!?

Sui (SUI) ?108.12%

Sui is a layer-1 blockchain designed for low-latency transfers, emphasizing instant transaction finality and high-speed throughput, making it ideal for real-time applications like games and finance. Its smart contracts use Move, a Rust-based language optimized for speed and security. Sui achieves "horizontal scaling" through "transaction parallelization," which allows simultaneous processing of independent transactions. This approach, combined with its Byzantine fault-tolerant proof-of-stake (PoS) consensus mechanism, ensures efficient validation of transactions by Sui nodes.

Sui has been riding the wave of the overall market recovery, solidifying its position as one of the largest Layer 1 (L1) blockchains with robust growth in its fundamentals. Over the past month, Sui's Total Value Locked (TVL) surged by nearly 50%, climbing from approximately $600 million to nearly $1 billion. This impressive increase not only reflects the growing confidence in Sui's ecosystem but also signifies its rising competitiveness in the blockchain landscape.

Notably, during the month, Sui's TVL temporarily surpassed that of Avalanche, a prominent L1 from the previous market cycle. This achievement has significantly bolstered investor sentiment and established Sui as a formidable challenger in the current cycle. As it continues to attract attention and investment, Sui is positioning itself as a key player in the evolving L1 space.

This month, significant developments within the Sui ecosystem served as a crucial catalyst for the price surge of SUI. One of the most noteworthy advancements was the launch of zkLogin, a feature that enables users to log in to various decentralized applications (dApps) using their Google and Facebook IDs. This innovation represents a critical milestone in bridging the gap between Web 2.0 and Web 3.0, potentially onboarding a broader user base to the decentralized world.

Additionally, Sui introduced the SuiPlay0X1, a handheld gaming console that integrates the Sui blockchain. During the pre-order phase, users will be required to create a new wallet, which will hold a unique NFT that is delivered alongside the device. Following the successful launch of the Solana Saga phone, anticipation has built around this console, with many expecting that purchasing it will offer various perks, including airdrop opportunities and other future rewards. This speculation further enhances the perceived value of the SUI token, attracting more interest and investment in the ecosystem.

Bittensor (TAO) ?95.07%

Bittensor ($TAO) is a decentralized network designed to facilitate the creation and maintenance of machine learning models. It leverages a peer-to-peer system of subnets, miners, and validators to decentralize AI development and commodify the production of ML data. Bittensor has grown significantly over the past year, expanding to 45 subnets, each focused on different AI tasks, from image generation to protein folding.

$TAO’s growth this month was fueled by the broader market’s renewed interest in AI. The release of OpenAI's new model and its $6.5 billion funding round have supported this narrative. Additionally, Bittensor’s introduction of child hotkeys in late August enhances subnet security and decentralization, providing further structural improvements to the network’s validator ecosystem. Lastly, Bittensor launched its v8.0.0 update, which introduced significant performance upgrades and a redesigned interface. The new btcli and btsdk deliver faster interactions with the chain, while the new Rust-based SCALE decoder improves decoding speed by up to 40x.

The addition of subnets and the shift towards a more decentralized network over the past year has bolstered Bittensor's infrastructure. The protocol’s emissions model, which rewards contributors actively improving the network, has proven sustainable. Looking ahead, continued advancements in distributed training and AI-focused subnets, combined with macro tailwinds in AI positions $TAO for further growth.

Fantom (FTM) ?65.04%

Fantom Foundation rebranded to Sonic Labs on 1 August 2024, a layer-1 platform with a secure gateway to Ethereum and provides the fastest settlement layer for digital assets with over 10,000 TPS and complete, one-second confirmation times. The native token of Fantom is FTM and upon the launch of the new Sonic chain, FTM holders can exchange 1 FTM for 1 S, the new native token of the Sonic chain.

The price of FTM, Fantom's native token, surged by 29.7% following the announcement of the Sonic testnet launch on September 6, driving retail interest and trader activity. On September 14, Sonic Labs provided an ecosystem update on X, sharing key insights about their Sonic&Sodas program—a global, community-hosted networking event for developers. The following week, Sonic Labs participated in Token2049, where they attended multiple events and further solidified their presence in the digital assets space. Shortly after Token2049, the Sonic team took part in the European Blockchain Convent in Barcelona on September 25. Between September 14 and September 25, the price of FTM increased by approximately 56.5%, reaching $0.72, likely driven by heightened market sentiment and increased awareness of the project, leading to stronger buying pressure for the FTM token.

Memecoins Rise Again: Popcat (POPCAT) ?64.89%; dogwifhat (WIF) ?49.60%; Shiba Inu (SHIB) ?47.83%; ORDI (ORDI) ?47.17%

Unlike traditional tokens that are valued for their utility, memecoins have carved out a unique niche in the crypto market, driven by online communities and meme culture. Prioritizing entertainment over practicality, memecoins became a significant growth catalyst in the crypto market throughout the month.

One standout example is Popcat (POPCAT), a memecoin on the Solana network, which gained popularity thanks to an October 2020 internet meme. It gained significant attention at the end of August 2024 when Binance launched POPCAT perpetual contracts with up to 75x leverage, marking a major milestone for the token. While not listed for spot trading, this move fueled speculation that a Binance listing could be on the horizon, especially as Popcat saw massive price gains throughout the year.

Dogwifhat (WIF), another Solana-based memecoin, gained traction due to influential figures like Ansem frequently promoting it alongside MOG and MEW. With potential catalysts like a Coinbase listing, the development of Wifsphere, and possible Robinhood and TikTok-driven virality, WIF has captured the attention of the crypto community.?

Unlike other memecoins that saw significant pumps this month, $ORDI's price increase appears to be driven by the broader Bitcoin beta pump. As Bitcoin's price surged, $ORDI experienced a correlated rise in value, benefiting from the overall market momentum rather than independent catalysts seen in other memecoins.

Sei (SEI) ?62.63%

Sei is a Layer-1 blockchain designed to enhance transaction processing and scalability through a parallelized Ethereum Virtual Machine (EVM) execution layer. Founded in May 2022 by Dan Edlebeck, Jayendra Jog, and Jeff Feng, Sei emphasizes reliability, security, and high throughput.?

Similar to its competitor Sui, Sei has demonstrated significant growth in its fundamentals this month, with its Total Value Locked (TVL) reaching the $200 million milestone. This achievement reflects a thriving ecosystem and growing confidence among investors and developers.

Additionally, Sei introduced Super Seiyan ETH, a new offering that allows users to earn Ethereum staking yields through Sei's infrastructure. This innovation provides Ethereum users with an opportunity to engage with the Sei network while maintaining their ETH exposure. The introduction of Super Seiyan ETH has not only enhanced liquidity but also increased overall activity within the Sei ecosystem, earning positive reception from the market and further solidifying Sei's position as a competitive player in the blockchain space.

Wormhole (W) ?56.57%

Wormhole is a leading cross-chain protocol designed to enable secure transfers of data and tokens across multiple blockchains. Launched in 2021 by Jump Crypto, Wormhole initially functioned as a token bridge but has since evolved into an interoperability layer, facilitating seamless communication between various blockchain ecosystems. The protocol has processed over $40 billion in value transfer and supports more than 30 blockchains, with a thriving ecosystem of over 200 applications built using its technology. The native governance token, W, is set to enhance the Wormhole ecosystem further, offering users opportunities to participate in governance and benefit from the platform's growth.?

In September, Wormhole has notably benefited from the broader market's beta effect, particularly as Solana (SOL)—the native chain for its W token—experienced significant growth with nearly 10% gains this month. This positive momentum has been complemented by several key developments within Wormhole that have further bolstered investor sentiment.

Firstly, the RWA service provider Securitize has selected Wormhole as its official interoperability provider for all current and future tokenized assets. This partnership will facilitate the seamless movement of tokenized assets across various blockchain ecosystems, thereby enhancing liquidity and accessibility for participants.

Additionally, the recently rebranded SkyEcosystem, formerly MakerDAO, announced plans to expand its $SKY, $USDS, and $sUSDS tokens across multiple chains utilizing Wormhole’s Non-Transferable Token (NTT) framework. This integration will enable the SkyEcosystem to connect with Solana while ensuring native token functionality and unified liquidity across different chains.

Moreover, Wormhole launched its Era3 Upgrade, introducing four product upgrades, a new intents product, and native-to-native swap capabilities, along with initiatives aimed at extending multichain capabilities for institutions. This upgrade represents a significant advancement towards creating a more interconnected and decentralized economy, further solidifying Wormhole's role in the evolving blockchain landscape.

Worldcoin (WLD) ?41.74%

Worldcoin ($WLD), co-founded by OpenAI’s Sam Altman, aims to provide a global digital identity solution through its World ID system. Using biometric data, particularly iris scans, the project establishes proof of humanness, positioning itself at the intersection of AI, identity verification, and blockchain technology. World ID’s role as a differentiator between humans and bots is becoming increasingly relevant as AI-generated content grows.

This month, Worldcoin launched World ID in Guatemala, Malaysia, and Poland amid growing concerns about AI-driven fraud. These launches highlight the expanding demand for identity verification solutions. Additionally, Worldcoin began testing facial recognition for World App users, further enhancing security and adoption. Another key development was the integration of World ID with Solana via Wormhole, facilitating new use cases in bot-prone sectors like airdrops and microtransactions.

Worldcoin has faced regulatory challenges, particularly in Europe, Latin America, South Korea, and Singapore, slowing its rollout in these regions. Recent fines imposed by South Korea and investigations in Singapore over privacy violations and unauthorized account sales reflect the ongoing scrutiny. However, the project continues to advance with the upcoming launch of World Chain, a Layer 2 blockchain built on Optimism’s OP Stack. With privacy enhancements such as the Face Auth feature and ongoing global expansion, Worldcoin could be positioned to continue to capitalize on the AI narrative and identity verification trends despite regulatory hurdles.

Closing Remarks

As September concludes, the crypto market appears to be stabilizing after the volatility caused by the unwinding of the yen carry trade. Despite the initial disruption, the market has shown resilience, and a renewed sense of optimism is emerging as we enter October. Historically, October has been a favorable month for cryptocurrencies, with Bitcoin rising in 8 of the last 10 years, positioning the market for potential gains.

October holds significant importance for the broader economic landscape, particularly with the Federal Reserve’s stance on interest rates. With inflation showing signs of slowing and potentially falling below 3%, markets anticipate rate cuts by the second half of 2024. Additionally, critical economic indicators such as the third-quarter GDP estimate and September jobs report will offer further insights into the strength of U.S. economic growth and labor market health.

On the industry front, major conferences like Blockchain Life 2024 in Dubai and ETHHongKong will take place in late October. These events will highlight innovations in decentralized finance and the Ethereum ecosystem, potentially driving increased attention and momentum towards these platforms, further enhancing the market’s recovery and growth trajectory.

Lastly, Treehouse Labs is set to launch a groundbreaking initiative to lay the foundations for the fixed-income layer in digital assets. For more information, check out the Treehouse Protocol here.

As we head into October, we are closely monitoring these developments and their potential impact on the market.? Stay tuned for our ongoing in-depth explorations of the crypto sphere through TRHX Research and the TRHX Pulse Newsletter, where we will deliver the latest updates.

Disclaimer

This publication is provided for informational and entertainment purposes only. Nothing contained in this publication constitutes financial advice, trading advice, or any other advice, nor does it constitute an offer to buy or sell securities or any other assets or participate in any particular trading strategy. This publication does not take into account your personal investment objectives, financial situation, or needs. TRHX does not warrant that the information provided in this publication is up-to-date or accurate.

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