Key inflection point or correction continuation? 12 Charts Interpret the Encryption Market's Mingyu May

Following the downturn in April, the encryption industry did not rebound significantly in May. Overall, the market is still in a state of correction in the past month, with a small number of indicators all rebounding, and most of them are still "below the water surface".

Written by: @Lars, Head of Research at The Block

Compilation: Jordan

Following the slump in April, the encryption industry did not rebound significantly in May. Overall, the market is still in a state of correction in the past month, with a small number of indicators all rebounding, and most of them are still "below the water surface." Next, let us use 12 pictures to interpret the "Mingyu May" that just passed. Click to review the data summary for the previous April.

1. In May, the total on-chain transaction volume of Bitcoin and Ethereum continued to decline after adjustment, with a decline rate of 5.3%, falling to 196 billion US dollars, of which the transaction volume on the Bitcoin chain decreased by 13.3%, but the transaction volume on the Ethereum chain It edged up 3.2%.

2. The adjusted stablecoin chain transaction volume in May dropped to US$464.6 billion, a decrease of about 4.2%; the supply of issued stablecoins continued to shrink to US$122.4 billion, a decrease of about 1.4%. The US dollar stablecoin USDT market share continued to rise (up to 68.2%), the supply reached 83.5 billion US dollars and hit a new high, while the market share of USDC fell further to 22.2%.

3. The income of Bitcoin miners increased significantly in May, rising to US$916.6 million, an increase of 13.7%. At the same time, the income of Ethereum staking decreased by 34.5%, which was about US$157.2 million.

4. In May, a total of 204,576 ETHs were destroyed on the Ethereum network, worth $380.1 million. Data shows that Ethereum has been in a state of deflation since January 2023. Since the implementation of EIP-1559 in early August 2021, Ethereum has destroyed a total of about 3.36 million ETH, worth about $9.76 billion.

5. In May, the transaction volume of the NFT market on the Ethereum chain was almost halved to about 652 million US dollars, a drop of 48.7%. Thanks to BLUR token incentives, the new NFT market Blur has surpassed OpenSea for the fourth consecutive month in terms of monthly transaction volume and other indicators.

6. The spot transaction volume of compliant centralized exchanges (CEX) fell by 23.2% in May to approximately US$307.4 billion, the lowest level since November 2020.

7. The spot market shares of major cryptocurrency exchanges in May are ranked as follows: Binance is 71%, Coinbase is 8.7%, BTSE is 5.1%, and Kraken is 4.5%.

8. The average daily trading volume of Grayscale’s Bitcoin Trust Fund GBTC continued to decline in May and fell to US$26 million, a drop of 38.2%, the lowest level since November 2019.

9. In terms of encryption futures, the open interest of Bitcoin futures in May rose by 2.9%, and the open interest of Ethereum futures rose by 5.7%. to $778.5 billion.

10. In May, the open interest of CME Bitcoin futures fell by 8.4% to US$1.85 billion, and the average daily turnover fell even more, reaching 30.1%, to about US$1.22 billion.

11. The average monthly trading volume of Ethereum futures in May dropped to approximately US$408 billion, a decrease of 24.3%.

12. In terms of cryptocurrency options, the open interest of Bitcoin options fell in May, but the open interest of Ethereum options rebounded. Among them, the open interest of Bitcoin options fell by 10.6%, and the open interest of Ethereum options increased by 5.6%. In terms of the trading volume of Bitcoin and Ethereum options, Bitcoin and Ethereum saw a general decline. Among them, the trading volume of Bitcoin options fell by 12% in May to 16.8 billion US dollars; the trading volume of Ethereum options fell by 8.5% , to $10.7 billion.