Bitcoin’s performance in the first quarter of 2024 has been remarkable, with the price surging by 70% and various other positive developments in the cryptocurrency ecosystem. According to a report by Messari, the price of Bitcoin reached an all-time high of $73,100, contributing to its market cap dominance of 49.7% in March 2024. This dominance is typically observed at the beginning of a new halving cycle, indicating Bitcoin’s leading role in the cryptocurrency market.
In terms of transaction activity, inscription-related fees spiked by 699.4% in Q4 2023 but decreased by 41.9% in Q1 2024. Despite the decline, inscription-related transactions still accounted for 18.4% of Bitcoin’s total fees, emphasizing their continued significance. Average daily transactions and daily active addresses experienced a decline of 15.3% and 4.7% respectively, potentially due to reduced activity from bots or “super users.” This decline aligns with the decrease in inscription-related activities and fees.
While Bitcoin exhibited strong performance, Q1 2024 also witnessed the growth of programmable layers in the cryptocurrency ecosystem. Rootstock and Stacks, established layers, led the way in terms of total value locked (TVL), while newer layers like BOB and Merlin experienced rapid growth. TVL’s 127% quarterly growth was mainly driven by non-BTC assets, with Bitcoin-locked amounts lagging behind Lightning Network and alt-L1 networks hosting significant BTC amounts.
The approval and launch of nine spot ETFs and one ETF conversion marked a significant milestone for Bitcoin’s acceptance by the US government and traditional finance. These ETFs attracted over $12 billion in inflows within the first month. Despite surpassing silver ETFs in assets under management (AUM), Bitcoin ETFs still trailed behind gold ETFs. Furthermore, institutional BTC holdings were surpassed by MicroStrategy, the largest institutional holder, as the ETFs accumulated 212,000 BTC in inflows during Q1, further establishing Bitcoin’s prominence in the financial markets.
Bitcoin’s outstanding performance in Q1 2024, characterized by significant price surges and market cap dominance, solidifies its position as the leading cryptocurrency. The anticipation surrounding the supply halving, along with the success of BTC ETFs and institutional inflows, has contributed to Bitcoin’s growth and recognition in traditional finance.