October was primarily the month of meme tokens, although the cryptocurrency market was also influenced by several key events. Binance’s monthly report showed a moderate overall market growth of 2.8%, accompanied by significant developments in infrastructure and liquidity.

The crypto market grew by 2.8% in October, but beneath this growth were essential market shifts. Bitcoin led the “Uptober” trend, gaining around 14% during four steady weeks and reaching new highs in November.

Bitcoin Aligns with the S&P 500 Index

BTC deviated from its traditionally weak correlation with U.S. stock indices. Previously, BTC functioned as a hedge against market volatility, but in October, its correlation with the S&P 500 strengthened considerably. Binance analysts view this shift as a change in perception, where BTC is considered both a risk asset and a potential hedge against uncertainty.

Bitcoin strengthened its correlation to S&P500, becoming both a risk-on asset and a hedge against uncertainty with a higher potential upside. | Source: Binance research

Meme Tokens Drive Growth for DOGE and SOL

DOGE emerged as the leader among altcoins and meme tokens in October, growing by 33.1%, boosted by mentions from #ElonMusk. and the inclusion of #doge⚡ in Robinhood Crypto Europe. Interest in meme tokens also benefited Solana (SOL), which saw a 9.7% increase. While Ethereum ended the month with a loss, SOL benefitted from the Pump.fun platform, which set records in daily token creation.

Pump.fun Strengthens Solana’s Dominance

Pump.fun attracted 90.6% of all newly created tokens weekly. Solana led in 2024 with 72.6% of all newly created tokens compared to 19.3% on the Base platform. In October, meme tokens dominated market growth, representing four of the five top-performing assets. Meme tokens’ share of trading volumes rose to 12%, reflecting a recent trend where meme tokens claimed up to 20% of daily trading volumes.

Solana (SOL) carried more than 90% of newly created meme tokens in October, and a total of 2.7M tokens in the year to date. | Source: Binance Research

Crypto Economy Shifts Toward Fee-Generating Applications

On-chain application revenues rose in October, signaling real adoption among users. Most fees remained with applications like Pump.fun and were not redistributed to core protocols. Of the 15 most profitable entities, 13 are now applications, indicating that a significant portion of future revenue may be driven more by applications than by core blockchains.

Most fee-generating entities were apps, which did not share their revenues with chains or platforms. | Source: Binance research

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