In February, the crypto industry experienced a rebound with both DeFi and NFTs gaining momentum. This was due to investors seeking risk outside of traditional assets. However, the Ordinal Inscription on Bitcoin created a divide among users on the blockchain's usefulness. Nonetheless, the blockchain continues to evolve and adapt to new demands for block space.
March saw Ethereum's Shanghai Upgrade making headlines, as it allowed ETH stakers to remove their staked ETH. Lido remained dominant in the Liquid Staking Derivative ("LSD") market, but new protocols emerged. Ethereum still dominates in DeFi despite increasing Total Value Locked ("TVL") on other blockchains such as BNB Chain and Tron. Layer-2 solutions like Optimism and Arbitrum gained significant traction.
Although NFT trading volume increased due to the Blur airdrop, it's unclear how it will look when the airdrop incentives decrease. Meanwhile, the NFT lending market hit all-time highs in demand and TVL, as holders seek liquidity for their assets.
Several coins exhibited strong price movements in idiosyncratic factors unique to each chain. More details are provided in the report.