This article discusses the major developments of Web3 in December 2023, outlining the current state of the cryptocurrency ecosystem.
Original Title: "Binance Research: Key Trends in Crypto – January 2024"
Author: Binance Blog
Translation: Kate, Mars Finance
Main Points
- This article outlines the recent Binance research report, discussing the major developments in the cryptocurrency market over the past month.
- December 2023 ended on a positive note, with the cryptocurrency market cap increasing by over 15% during the month. The DeFi and NFT markets also showed significant growth, maintaining an upward trend compared to previous periods.
- The expected developments in January 2024, such as the approval of a Bitcoin spot ETF in the United States and the performance of altcoins, will be crucial in shaping the trajectory of the cryptocurrency industry in the coming year.
With the help of Binance Research, you can utilize industry-level analysis of the Web3 shaping process. By sharing these insights, we hope to provide the latest knowledge in the field of cryptocurrency research to our community.
Today's article discusses the major developments of Web3 in December 2023, outlining the current state of the cryptocurrency ecosystem. Before previewing the significant events to watch for in January 2024, we analyze the performance of the cryptocurrency, DeFi, and NFT markets.
Cryptocurrency Market Performance in December 2023
The cryptocurrency market surged in December 2023, ending the year on a very positive note. The total market cap for the month increased by 15.2%, primarily driven by the anticipated approval of a Bitcoin spot ETF in the United States.
Despite several last-minute modifications to applications, the general consensus in the market is cautiously optimistic. As the approval deadline approaches in the first two weeks of January, the market's results and reactions are still to be observed.
Monthly Changes in Cryptocurrency Market Cap (%)
Source: CoinMarketCap (December 31, 2023)
Monthly Price Performance of Top 10 Coins by Market Cap
Source: CoinMarketCap (December 31, 2023)
Throughout December, the prices of all tokens in the top ten market cap rankings continued to rise, with altcoins leading the way once again. AVAX, SOL, and ADA saw monthly increases of 84.2%, 71.9%, and 60.1%, respectively.
In recent months, Solana's outstanding performance and overall improvements to alternative L1 networks have sparked interest in these types of altcoins. Some refer to them as "Ethereum killers," and the market focus has to some extent shifted to this notion. Additional factors such as airdrop mining, meme coin frenzy, and bearish sentiment surrounding ETH have further contributed to this trend.
BNB broke its previous stagnation trend, with a price increase of 39.2%, making it the fifth best-performing token of the month. The monthly gains for Bitcoin and Ethereum were both below 12% at the close of the month. As we enter 2024, the question of whether the "Ethereum killer" narrative will continue will be crucial.
Decentralized Finance (DeFi)
In December 2023, the DeFi market grew by 15.2%, maintaining its upward trend since November. The total value locked (TVL) of all top ten blockchains saw growth, with Solana experiencing the largest increase at 115%. Other significant increases were seen in Base and Avalanche, at 53.9% and 60.7%, respectively.
Seamless is the first native lending protocol on Base, now the second-largest protocol by TVL on this blockchain. The usage of other lending protocols also increased, with AAVE, JustLend, and Compound seeing monthly increases of 13.9%, 7.2%, and 4.2%, respectively.
TVL Share of Top Blockchains
Source: DeFiLlama (December 31, 2023)
Non-Fungible Tokens (NFTs)
Monthly NFT Transaction Volume
Source: Cryptoslam (December 31, 2023)
In December 2023, NFT transaction volume set a monthly record for the entire year of 2023, exceeding $1.7 billion, with a 77% monthly increase. The growth was primarily driven by activity on the Bitcoin and Solana networks, with the USD sales volume on these two networks increasing by 125.6% and 378.9%, respectively.
Ordinals continued to maintain a strong momentum, ranking in the top five by 30-day trading volume for BRC-20 NFTs. New blockchain networks with a focus on NFTs have begun to emerge, such as Frame and RARI Chain. As competition intensifies between blockchains, we will see how these developments impact the performance of NFTs in 2024.
Upcoming Events
To help users stay informed about the latest Web3 news, Binance Research has summarized the noteworthy events and token unlocks to watch for in the coming month. Please stay tuned for the upcoming developments in the blockchain field.
Key Events in January 2024
Source: Binance Research
Largest Token Unlocks in USD
Source: TokenUnlocks, Binance Research
This article is just a snapshot of the complete report, which includes further analysis of the most important market charts over the past month. It also delves into Solana and stablecoins, the recent NFT frenzy, re-staking markets, and native yield-generating blockchains. To read the full version of this report, please click here.
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