Binance Research: Key Trends in Crypto – January 2024
Main Takeaways
This article previews the recent Binance Research report discussing key developments in crypto markets over the past month.
December 2023 wrapped up the year on a positive note, with crypto market capitalization rising over 15% over the month. DeFi and NFT markets also saw significant growth, sustaining uptrends from previous periods.
Anticipated developments in January 2024, such as U.S. approvals of spot bitcoin ETFs and altcoin performance, will be key to shaping the crypto industry’s trajectory for the upcoming year.
Thanks to Binance Research, you can take advantage of industry-grade analyses of the processes shaping Web3. By sharing these insights, we hope to empower our community with the latest knowledge from the field of crypto research.
Today’s article explores key Web3 developments in December 2023 to provide an overview of the crypto ecosystem’s current state. We analyze the performance of crypto, DeFi, and NFT markets before previewing major events to look out for in January 2024.
Crypto Market Performance in December 2023
The crypto market surged in December 2023, closing off the year on a highly positive note. A 15.2% increase in total market capitalization this month was largely fueled by anticipation of the potential approval of U.S. spot bitcoin ETFs.
Despite several last-minute application amendments, the general consensus of the market is cautiously optimistic. With approval deadlines falling in the first two weeks of January, the outcome and reaction of the market remain to be seen.
Monthly change in crypto market capitalization (%)
Monthly price performance of the top 10 coins by market capitalization
The prices of every coin among the top ten by market capitalization kept climbing throughout December, with altcoins leading the pack once more. AVAX, SOL, and ADA witnessed significant monthly gains of 84.2%, 71.9%, and 60.1%, respectively.
In recent months, Solana’s remarkable performance and general improvements to alternative L1 networks have spurred increased interest in such altcoins. Some have dubbed them “Ethereum killers,” and market focus has somewhat shifted toward this narrative. Further factors such as airdrop farming, meme coin frenzy, and bearish sentiment around ETH have also contributed to this trend.
BNB broke through its previous stagnant trend with a 39.2% price increase, emerging as the fifth-best performer for the month. Both BTC and ETH ended the month with modest gains under 12%. As we move into 2024, it will be key to see whether the “Ethereum killer” narrative persists.
Decentralized finance (DeFi)
The DeFi market expanded by 15.2% in December 2023, sustaining its uptrend from November. The total value locked (TVL) of all top 10 blockchains grew, with Solana seeing the strongest increase of 115%. Other notable gainers included Base and Avalanche, with 53.9% and 60.7%, respectively.
Seamless, Base’s first native lending protocol, is now the second-largest protocol by TVL on this blockchain. The adoption of other lending protocols also rose, with AAVE, JustLend, and Compound seeing monthly gains of 13.9%, 7.2%, and 4.2%, respectively.
TVL share of top blockchains
Non-fungible tokens (NFTs)
Monthly trading volume for NFTs
December saw record monthly NFT trading volumes for all of 2023, exceeding $1.7B and marking a monthly increase of 77%. Growth was largely driven by activity on Bitcoin and Solana networks, each seeing USD sales volumes rise by 125.6% and 378.9%, respectively.
Ordinals have continued their strong momentum, with BRC-20 NFTs holding the top five spots by 30-day trading volume. Newer NFT-focused blockchains have begun to emerge, such as Frame and RARI Chain. As competition among blockchains intensifies, we will see how these developments affect NFT performance in 2024.
Upcoming Events
To help users stay updated on the latest Web3 news, Binance Research has summarized notable events and token unlocks for the month to come. Keep an eye on these upcoming developments in the blockchain space.
Notable events in January 2024
Source: Binance Research
Largest token unlocks in US$ terms
Binance Research
The Binance Research team is committed to delivering objective, independent, and comprehensive analyses of the crypto space. We 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 analyses of the most important market charts from the past month. It also dives deeper into Solana and stablecoins, the recent inscriptions frenzy, the restaking market, and native yield-generating blockchains.
To read the full version of this report, click here.
Further Reading
Disclaimer: 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.