Fortunafi's 2Q2024 State of the Industry Report (RWA & Stablecoins)

An ugly start to 2Q2024 coincided with the crypto market posting its worst monthly performance since June 2022. The softness could be attributed to U.S. Fed chair Jerome Powell stating that the Fed’s restrictive rates policy needs more time to work after a higher-than-expected inflation print, in addition to fears of more anti-crypto regulatory actions after news broke that the SEC sent a Wells Notice to New Uniswap Labs; April proved to be an uneventful month even in the face of bitcoin’s fourth halving in mid-April.

Although May had a slow start, too, a jump in optimism towards month-end catapulted the market higher and reassured market participants that the bulls remain in control. Gains were fueled by significant regulatory and economic shifts in the U.S. Following Donald Trump’s outspoken support for crypto and his commitment to “embrace” it, a bi-partisan issue became a partisan issue overnight.³ What followed was the U.S. House passing the FIT21 crypto bill, making the CFTC the primary regulator for cryptoassets, the SEC approving several spot Ethereum ETF applications, and President Biden’s re-election campaign outwardly seeking advice from crypto industry players for guidance for “crypto community and crypto policy.” The broader market also benefited from lower-than-expected inflation data and over 600 firms revealing significant investments in spot BTC ETFs per their latest 13F filings with the SEC.

Despite the flurry of positive developments in May, market-wide derisking pushed crypto lower in the first half of June before consolidating. May’s price action caught some market participants off-guard, while seasoned veterans interpreted the volatility as merely early-summer consolidation. As disappointing as June was to some, several favorable developments proved the bulls are well positioned. This includes prospects of the U.S. rate-cut cycle after the U.S. unemployment came in at 4% (3.9% expected), inflation came in at 3.3% YoY (3.4% expected), and the Bank of Canada and European Central Bank cut interest rates.

When all was said and done, 2Q2024 was a down quarter for the market, but there was no shortage of positive broader industry developments, especially for RWA and stablecoins. Recent events and existing multi-quarter trends lead us to believe that institutional innovation and adoption, amongst other things, will continue to push RWA and stablecoins into the limelight. After reading this report, expect to understand why 2Q2024 was a big quarter for both sectors and why 2H2024 looks even better.

Want To Read The Full Report?

Every quarter, we break down what happened in RWA and stablecoins so you can stay informed and educated. Not only that, but we also provide a detailed outlook of what to expect in light of ongoing market developments.

Topics Covered:

• Crypto, RWA, & DeFi Sentiment

• RWA Experimentation Ramps Up

• Key RWA Adoption Metrics Hit Milestone

• Governments & Institutions Dabble Into RWA

• A Surge In New Stablecoins

• Total Stablecoin Transfer Volume Hits $11T

• Stablecoin Total Market Cap Hits 2-Year High

 
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Disclaimer: The information contained herein is general information, intended for educational purposes only, and is not intended to constitute legal, tax, accounting, or investment advice. Information, opinions, and views are solely of Fortunafi, and none of the information contained should be used as the basis for any investment decisions. To ensure suitability, contact a licensed investment professional when making any investment decisions and do your own research.