2024-05-06 15:20:00 ET
Summary
- In April, March’s euphoria faded into a downward price grind for digital assets and produced Bitcoin’s first negative return in eight months.
- Smart contract platforms, excluding Bitcoin, fell 28% on the month while trading volumes and on-chain revenues also declined sharply.
- Solana, which has been plagued by unreliable transaction processing due to arbitrage bot spam activity, seems to be nearing a fix to solve the congestion issues.
Digital asset prices declined amid an oversupply of new alt-tokens, with Bitcoin posting its first negative return in eight months, and increased U.S. regulatory scrutiny on self-custody
In April, March’s euphoria faded into a downward price grind for digital assets and produced Bitcoin’s first negative return in eight months (-14%) amid an over-supply of new alt-token supply, falling on-chain activity and a regulatory assault on self-custody by U.S. authorities. Smart contract platforms, excluding Bitcoin, fell 28% on the month while trading volumes and on-chain revenues also declined sharply. Altcoins bore the brunt of the mushy price action as the average return outside of ETH/BTC was -37% on the month. Many names like Starknet and Aptos fell by almost 50%. The story of the month can best be described as the cooling of speculative froth amid more troubling macro signals, a stagnation of user activity, and a worsening of the regulatory environment in the U.S....
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VanEck Crypto Monthly Recap For April 2024