Key Takeaways

Market Performance: In October, the cryptocurrency market fluctuated between a total market capitalization of $2.2 trillion and $2.5 trillion, influenced by uncertainty surrounding the U.S. election results and ongoing geopolitical tensions. The market exhibited a wait-and-see attitude. Bitcoin (BTC) experienced a significant price increase in mid-to-late October, with a monthly gain exceeding 15%.

On-Chain Data: Solana saw a substantial increase in daily active addresses, reaching 8.17 million on October 29, representing a 39.7% month-on-month growth. The surge in MEME token trading likely contributed to the increase in active on-chain addresses. Meanwhile, the total trading volume on decentralized exchanges (DEX) dropped nearly 20%, though Uniswap remained the leading platform in terms of trading volume.

Hot Topics: Grayscale’s Digital Large Cap Fund (GDLC) has filed a request with the U.S. Securities and Exchange Commission (SEC) to convert into an Exchange Traded Fund (ETF). If approved, this would mark the first ETF in the U.S. to cover multiple cryptocurrency assets, signaling a significant step in crypto’s integration into mainstream financial markets. The MEME coin frenzy also led to a significant increase in activity on the Pump.fun platform, which set new records in token issuance, surpassing 34,000 tokens per day in October.

Funding Information: The Web3 industry raised a total of $793 million across 96 funding rounds in October. Among these, wallets and CeFi projects attracted the most attention, securing $210 million and $153 million, respectively. Of the 67 projects that disclosed their funding details, 57.5% raised between $1 million and $10 million, indicating that smaller funding rounds continue to dominate in the current stage of the industry.

Security Incidents: Security incidents in October resulted in a total loss of approximately $135 million. Account hacking incidents accounted for the largest share, representing 44.8%. This included breaches in well-established projects such as Eigenlayer, Symbiotic, and Zulu Network, as well as the hacking of X’s official Twitter account.

Upcoming Events: APT and ARB are key tokens in the current round of token unlocks, with unlock amounts reaching $124.6 million and $62.1 million, representing 2.4% and 2.3% of their respective market capitalizations. Given the large volume of unlocked tokens, the market may face sell-side pressure. The dates of these unlocks will be critical to monitor.