The crypto market capitalization saw a 109% increase in 2023, driven by gains in the first and fourth quarters, maintains the heavyweight of the crypto world.
The report highlights eight topics that are expected to trend in 2024, covering developments related to the Bitcoin ecosystem.
Binance Researchthe research arm of cryptocurrency exchange Binance, released its annual crypto industry report, “Full Analysis of 2023 and Themes for 2024“. The document offers a detailed analysis of the market performance over the last year and outlines eight trends that are projected to shape the industry landscape in 2024.
The document begins by pointing out that the crypto market experienced a significant turnaround in 2023. This came hand in hand with a market capitalization that increased more than 100% (109%), driven by substantial gains in the first and fourth quarters. “The rally in the last quarter was driven by optimism around Bitcoin ETF approvals and anticipation of the next Bitcoin halving“says Binance.
Likewise, it highlights that the broader financial environment, marked by resilient global GDP growth and a moderate inflation rate, also contributed to “a conducive environment for risk assets such as cryptocurrencies“.
Investments in Web3 projects
Throughout 2023, Web3 projects attracted a total of 1,173 investments, accumulating a collective capital of 9 billion dollars. Of this, a substantial 36.5% was invested in infrastructure projects, followed by CeFi with 13.3%, and DeFi with 8.6%.
“Despite the notable reduction in investment volume and overall valuations in 2023, there are positive indicators,” the document indicates, “including signs of market recovery and the substantial capital allocated to build infrastructure,” it adds.
About NFTS: non-fungible tokens
Non-Fungible Tokens (NFTs) rallied impressively throughout the fourth quarter. December volumes of $1.7 billion were the highest in 2023with Bitcoin NFTs demonstrating the most impressive growth.
“NFT market battles have been another key theme, with the development of the next layer 2 aligned with Blur, Blast. It will be important to see OpenSea’s response to the reduction in its market share,” Binance maintains.
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Decentralized Finance (DeFi) saw robust growth in 2023 with TVL rising 38.9% from the previous year. The notable rise of liquid staking tokens (LSTs) and LSTfi, lhe growing adoption of real-world assets, and the emergence of intent-centric architecture are notable developments that have contributed to the growth of the sector.
In the report, the Binance Research team shares: “As we glimpse the future of the crypto market, the lessons of 2023 underscore the industry’s ability to adapt, innovate and grow, even amid challenges. The strong recovery in 2023 serves as foundation for new advancements, growth and possibilities for the crypto space
Binance Key Takeaways:
- Significant growth in 2023: The crypto market capitalization saw a 109% increase in 2023, driven by gains in the first and fourth quarters. This rally was attributed to optimism over Bitcoin ETF approvals and anticipation of the upcoming Bitcoin halving.
- Rise of Web3 projects: Web3 projects attracted 1,173 investments in 2023, accumulating capital of $9 billion. The investment was distributed with 36.5% in infrastructure projects, 13.3% in CeFi (Centralized Finance), and 8.6% in DeFi (Decentralized Finance).
- Resurgence in gaming activity: A resurgence in gaming activity was seen towards the end of the year, with a significant increase in the number of unique wallets active on a weekly basis. 2024 is expected to be a standout year with game releases from major industry giants.
- Recovery of NFTs: Non-Fungible Tokens (NFTs) experienced an impressive recovery in the fourth quarter, reaching volumes of $1.7 billion in December. Bitcoin NFTs showed notable growth, and the report highlights the battles in the NFT market and layer 2 development aligned with Blur, Blast.
- Robust growth in DeFi: Decentralized Finance (DeFi) saw solid growth in 2023, with a 38.9% increase in Total Value Locked (TVL) from the previous year. Liquid staking tokens (LSTs), real-world asset adoption, and intent-centric architecture are highlighted as notable developments.
- Changing dynamics in stablecoins: Despite the rebound in October, the global stablecoin market capitalization saw a decline of 5.2% YTD. Centralized stablecoins, led by Tether’s USDT, continue to dominate the market, but changes in dynamics are seen with the emergence of new entrants and LST-backed stablecoins.
- Key trends for 2024: The report highlights eight topics that are expected to trend in 2024, covering developments related to the Bitcoin ecosystem, ownership economics, artificial intelligence (AI), real-world assets (RWAs), on-chain liquidity, institutional adoption, among others. others.
These conclusions highlight the ability of the crypto industry to adapt, innovate and growhighlighting the strong recovery of 2023 as a foundation for new developments and opportunities in the crypto space.
Source: Ambito
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