The cryptocurrency market surged in value from $1
trillion to $2.5 trillion from October 2023 to March 2024.
This boost was driven by institutional interest and venture capital funding
in the sector. Bybit and Treehouse Finance recently highlighted these findings in a report dubbed the “2024 Institutional Industry Report”. The study covered derivatives, challenger chains, and the resurgence of venture capital.
According to the report, there is a positive sentiment
in the derivatives market. Bitcoin (BTC) and Ethereum (ETH) exhibited a notable
call premium despite the relatively sideways price movement in March, suggesting a bullish
sentiment among investors.
This outlook hints at the potential for significant
price appreciation for these leading cryptocurrencies by the end of the year. Bitcoin‘s
status as a hedge against traditional finance (TradFi) remains robust, with its
correlations to major equity indices below 3%.
Source: DefiLlama, Treehouse, Bybit
Noteworthy, Bitcoin’s negative correlation with equity
returns strengthens its role as a diversification tool for equity-focused
portfolios. Besides that, challenger chains have garnered renewed interest
since Q4 2023, with native tokens outperforming Ethereum.
In particular, Solana is leading the charge, showcasing substantial growth in total value locked and
transaction volume. This trend underscores the growing competitiveness in…
