Binance Research: Key Trends in Crypto – December 2023
Main Takeaways
In this blog series, we offer concise summaries of the Binance Research team’s findings, inviting you to take a deeper dive into the original reports.
This article previews the recent Binance Research report discussing key developments in crypto markets over the past month.
November 2023 was another positive month for crypto, with total market capitalization increasing by 11%. Crypto, DeFi, and NFT markets all saw upward trends from the previous month sustained.
Thanks to Binance Research, you can take advantage of industry-grade analyses of the processes that shape what the Web3 space will look like tomorrow. By sharing these insights, we hope to empower our community with the latest knowledge from the field of crypto research. For a deeper dive, the full reports are available on the Binance Research website.
In financial markets, knowledge is power. Gone are the days when only big institutions and sophisticated financiers used high-quality research to navigate the digital asset space. Thanks to Binance Research, you can empower yourself with the latest data and insights from the field of crypto intelligence.
Today’s article explores key Web3 developments in November 2023 to provide an overview of the crypto ecosystem’s current state. We analyze the performance of crypto, DeFi, and NFT markets before previewing the major events to look out for in December 2023.
Crypto Market Performance in November 2023
November 2023 was another positive period for crypto, sustaining its upward trajectory with an 11% monthly increase in total market capitalization. The first half of the month saw the market cap rise 12%, with subsequent minor corrections that followed a period of speedy growth. Overall, the crypto market continues to be fueled by considerable bullish sentiment, with total market capitalization increasing more than 35% since October 2023.
Monthly change in crypto market capitalization (%)
Source: CoinMarketCap (November 30, 2023)
Monthly price performance of the top 10 coins by market capitalization
Source: CoinMarketCap (November 30, 2023)
Almost all of the top 10 coins by market capitalization closed the month with positive price dynamics. SOL continued to lead the pack, with an impressive increase of 69.5% in November. Solana’s recent resurgence in the crypto landscape has been particularly notable, and its annual Solana Breakpoint conference earlier in the month drew significant attention in the crypto community. LINK and ADA also experienced considerable gains of 29.1% and 26.1%, respectively. Meanwhile, ETH and BTC saw more modest gains, recording price increases of 12.1% and 9.7%, respectively.
Decentralized finance (DeFi)
The DeFi market also sustained its upward trend, with a 10% increase in total value locked (TVL) over the month. This uptick was consistent with the overall positive market sentiment and token price performance detailed above. Among the top ten chains by total value locked, Solana led the charge here as well, with a 56% increase in TVL. Optimism and Avalanche followed, trailing behind with 17% and 16% increases, respectively. Conversely, Tron and Base saw downturns this month, ending it with TVL decreases of 4% and 2%, respectively.
TVL share of top blockchains
Source: DeFiLlama (November 30, 2023)
Non-fungible tokens (NFTs)
Monthly trading volume for NFTs
Source: Cryptoslam (November 30, 2023)
November 2023 was a pivotal month for the NFT market, reversing its sustained downtrend as trading volume hit $0.91B. This figure represents a monthly increase of around 200%, the largest seen in 2023 by far. Nansen’s NFT-500 index and the Blue Chip 10 index both reported considerable improvements from previous months as well. A large driver of this resurgence were Bitcoin NFTs, which have recently generated significant growth.
Upcoming Events
To help users stay updated on the latest Web3 news, Binance Research has summarized notable events and token unlocks for the month to come. Keep an eye on these upcoming developments in the blockchain space.
Notable events in December 2023
Source: Binance Research
Largest token unlocks in US$ terms
Source: TokenUnlocks, Binance Research
Binance Research
The Binance Research team is committed to delivering objective, independent, and comprehensive analyses of the crypto space. They publish insightful takes on Web3 topics, including but not limited to the crypto ecosystem, blockchain applications, and the latest market developments.
This article is only a snapshot of the full report, which contains further insights and analyses of the most important market charts from the past month. It also features an examination of recent developments concerning Telegram bots, Solana, Bitcoin and Ethereum fees, and Polygon’s layer-2 rollup.
To read the full version of this report, click here. Additionally, you can find other in-depth investigations of the latest Web3 developments by visiting the Insights & Analysis page on the Binance Research website. Take the opportunity to empower yourself with the latest insights from the field of crypto research!
Further Reading
General Disclosure: This material is prepared by Binance Research and is not intended to be relied upon as a forecast or investment advice and is not a recommendation, offer, or solicitation to buy or sell any securities or cryptocurrencies or to adopt any investment strategy. The use of terminology and the views expressed are intended to promote understanding and the responsible development of the sector and should not be interpreted as definitive legal views or those of Binance. The opinions expressed are as of the date shown above and are the opinions of the writer; they may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources deemed by Binance Research to be reliable, are not necessarily all-inclusive, and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given, and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Binance. This material may contain ‘forward-looking’ information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader. This material is intended for information purposes only and does not constitute investment advice or an offer or solicitation to purchase or sell in any securities, cryptocurrencies, or any investment strategy, nor shall any securities or cryptocurrency be offered or sold to any person in any jurisdiction in which an offer, solicitation, purchase, or sale would be unlawful under the laws of such jurisdiction. Investment involves risks.