Glassnode Report Shows The Crypto Market Is Maturing, Here’s How!

According to an October 15 crypto market report from Coinbase and Glassnode, the rapid adoption of stablecoins and further development of Ethereum layer-2 scaling solutions are additional catalysts for the market maturation.

Billions of dollars have continued to pour into the cryptocurrency market this year. They appeared as spot crypto ETFs, increasing blockchain transaction volume.

Significant trading volumes, vigorous on-chain activity, and thriving spot ETFs show a deepening, increasingly liquid, and access-widening marketplace.

Crypto Market Shows Remarkable Growth and Maturity in 2024

A crypto market report from Coinbase and Glassnode has recorded phenomenal growth and maturity for the crypto market. The market went into spot ETFs that massively increase market liquidity and accessibility. Running parallel to this inflow has been an unprecedented increase in blockchain activity.

That makes the crypto market less volatile in 2024 as investors focus on higher-quality assets. For instance, three-month spot price volatility for Bitcoin has fallen below 60%. This is way lower than the nearly 130% peak reached in 2021. This transition signals a more stable environment for the leading cryptocurrency.

More importantly, stablecoins and Bitcoin market capitalization make up more of the total cryptocurrency market capitalization in the Q3 than in the Q2. This suggests a flight to safer asset classes because of the changing market dynamics.

The introduction of spot Bitcoin ETFs in the US in January 2024 catalyzed this movement. According to Bloomberg and Coinbase, such ETFs lured about $5 billion into Bitcoin in Q3, partly reflecting investor interest in regulated, exchange-traded exposure to the digital asset.

During the third quarter of 2024, the total market capitalization of stablecoins reached an all-time high of about $160 billion, reflecting their continued adoption for a wide range of use cases in the crypto economy. Just today, speculation in the crypto market surged following Ripple’s announcement of key updates on its stablecoin, RLUSD.

It included the reveal of the first exchange and platform set to support its upcoming launch, drawing significant market attention.

Ethereum Ecosystem Flourishes Amid ETF Outflows

Meanwhile, Ether ETFs saw net outflows as investors pulled their money from the Grayscale Ethereum Trust, ETHE. This trust had actually existed since 2017 under another construction type until its conversion to an ETF this year, 2024. The change in trend epitomizes a shift in investor attitude through the shifting dynamics of the market.

While Ether’s spot price performance has lagged that of Bitcoin, strong growth is being unveiled within the Ethereum ecosystem. It is driven by a class of innovative Layer-2 scaling solutions that are scaling the network and extending its functionality. This crypto market report shows that growth in the greater ecosystem suggests a greater adoption of applications and services based on Ethereum, even as its price movements trail behind Bitcoin.

In 2024, daily active addresses and the volume of Ethereum transactions began to grow, with on-chain activity fivefold from the beginning of 2023. Experts say this is because of the expansion of layer-2 scaling solutions, such as Coinbase’s Base network, which improves the network’s efficiency by settling more transactions at a cheaper rate, making the ecosystem more approachable.

In addition, Ethereum’s share of total fee generation among the fee-earning layer-1 blockchains has recovered substantially. It rose from 9% at the end of August to 40% at the end of September, with a resurgence in network demand and usage driven by DeFi activity and layer-2 adoption. Fee recovery underlines the network’s relevance in the wider crypto landscape despite changes in market dynamics.

Coinbase co-worked with Glassnode in making of this crypto market report even though it has its own issues. On Tuesday, the company filed a motion with the US District Court for the District of Columbia, via its consultant History Associates Inc., requesting the court to compel the SEC to produce documents clarifying how securities laws apply to cryptocurrencies.

✓ Share:

Teuta

Teuta is a seasoned writer and editor with over 15 years of experience in macroeconomics, technology, and the cryptocurrency and blockchain industries. Starting her career in 2005 as a lifestyle writer for Cosmopolitan in Croatia, she expanded into covering business and economy for several esteemed publications like Forbes and Bloomberg. Influenced by figures like Don Tapscott and Bruce Dickinson, Teuta embraced the blockchain revolution, believing crypto to be one of humanity’s most crucial inventions. Her fintech involvement began in 2014, focusing on crypto, blockchain, NFTs, and Web3. Known for her excellent teamwork and communication skills, Teuta holds a double MA in Political Science and Law, enjoys punk rock, chablis, and has a passion for shoes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.