Binance Research, the research arm of Binance, the world's leading cryptocurrency and blockchain infrastructure provider, released its annual crypto industry report, "Complete Analysis of 2023 & Topics for 2024." The report provides a comprehensive analysis of market performance over the past year and outlines eight trends that are projected to shape the industry landscape in 2024.
The crypto market experienced a significant turnaround in 2023. Key points from the report:
1. Market cap increased 109% in 2023, fueled by substantial gains in Q1 and Q4. The rally in the last quarter was driven by optimism surrounding the #ETF approvals of #Bitcoin $BTC and anticipation of the upcoming Bitcoin halving. The broader financial environment, marked by resilient global GDP growth and a moderate inflation rate, also contributed to an enabling environment for risk assets such as cryptocurrencies.
2. Throughout 2023, Web3 projects attracted a total of 1,173 investments, accumulating collective capital of US$9 billion. 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, including signs of market recovery and substantial capital allocated to build infrastructure.
3. Looking at on-chain metrics, there has been a resurgence in gaming activity towards the end of the year. There were 12.6M unique portfolios active weekly in the last week of the year, more than double the 5.8M at the beginning of the year. 2024 is expected to be an eventful year with upcoming releases of various games from major industry giants.
4. Non-Fungible Tokens (NFTs) recovered impressively throughout Q4. December volumes of $1.7 billion were the highest of 2023, with Bitcoin's #NFT demonstrating the most impressive growth. NFT market battles have been another key theme, with the development of the next Blur-aligned Layer 2, Blast. It will be important to see OpenSea's response to the reduction in its market share.
5. Decentralized Finance (DeFi) saw robust growth in 2023 with TVL increasing 38.9% from the previous year. The notable rise of liquid staking tokens (LSTs) and LSTfi, the 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.
6. Despite the October bounce, the global stablecoin market capitalization saw a decline of 5.2% YTD, accompanied by changes in market dynamics. Centralized stablecoins continue to dominate 92% of the market, with Tether's USDT expanding its dominance to 70.6%, even with the emergence of new entrants such as Collateralized Debt Positions (CDP) and the rise of #Stablecoins backed by LST.
Based on the analysis, the Binance Research team also offers perspectives on eight topics that are expected to trend in the crypto landscape in 2024. These topics span several sectors: developments related to the Bitcoin ecosystem, the property economy, artificial intelligence ( AI), real world assets (RWAs), on-chain liquidity, institutional adoption, among other topics.
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 advances, growth and possibilities for the crypto space."
Covering everything from detailed monthly and quarterly industry insights to the latest crypto trends, Binance Research aims to be a beacon of information for the market. This comprehensive year-end report is part of an ongoing commitment to lowering barriers to entry into the industry, offering a comprehensive analysis of the landscape for both newcomers and veterans looking to conduct their own research.
Source: Territorioblockchain.com
