Binance Research has unveiled the key trends in the crypto sphere in a recently published report. The research primarily focused on the performance of crypto markets in December 2023 and forecasted the significant developments for January 2024.
At the close of 2023, the crypto market cap ballooned over 15% in December. This uptick was partially driven by an optimistic forecast of U.S. spot Bitcoin ETFs approval. All top ten cryptocurrencies by market cap posted upswings, with altcoins leading the charge, particularly AVAX, SOL, and ADA posting significant monthly gains.
DeFi and NFT markets also gained considerable traction, continuing the growth trends from previous periods. In particular, the DeFi market recorded a 15.2% expansion in December 2023, led by Solana, witnessing a 115% increase in Total Value Locked (TVL).
NFT trading volumes hit a 2023 high in December, surpassing $1.7 billion – a monthly increment of 77%. Most notably, Bitcoin and Solana networks powered the trading volume boom with an upsurge of 125.6% and 378.9%, respectively.
Looking forward, January 2024 forecasts hinge on the U.S. approvals of spot Bitcoin ETFs and altcoin performance. These factors will play a significant role in shaping the crypto industry dynamics for 2024.
