PANews reported on August 1 that Binance Research Institute released a report on the crypto market in the first half of 2024 today. The main contents are as follows: The cryptocurrency market has performed strongly this year. So far, the total market value of cryptocurrencies has risen by about 44%, an increase of more than US$720 billion. Compared with the same period last year, the total market value of cryptocurrencies has risen by more than 104%, and has increased by more than US$1.2 trillion since July last year. Bitcoin has been active since the approval of the US spot ETF in January, the fourth halving event in April, and the release of Rune. Bitcoin's scalability and decentralized finance (DeFi) fields have also become more active. Correspondingly, Bitcoin's market share has increased from about 50% to more than 55% this year. In addition to Nvidia, Bitcoin and Ethereum have performed particularly well compared to common traditional financial (TradFi) investments (including Alphabet, Amazon, and Apple). Bitcoin and Ethereum have performed far better than major stock indices, many of which (such as the Hang Seng Index and the FTSE 100 Index) have only returned single-digit returns this year. The US spot Bitcoin ETF has received a hugely positive response, attracting over $17 billion in net inflows and an average daily trading volume of $2.5 billion. The recently launched US spot Ethereum ETF has also provided a positive tailwind for the industry, further legitimizing the asset class from a traditional finance perspective.
Additionally, stablecoin supply, a measure of cryptocurrency inflows and potential buying pressure, has been at its highest level since May 2022 (~$165 billion) and is rapidly approaching its all-time high (~$188 billion). Restaking has been the dominant narrative for Ethereum in 2024, attracting over $18 billion in total value locked (TVL). While EigenLayer is in the lead, new competitors such as Karak and Symbiotic are also emerging. Solana's decentralized exchange (DEX) activity has reached new all-time highs, both in terms of trading volume and the number of weekly DEX traders. Solana's weekly trader count is significantly higher than other major chains. The popularity of on-chain meme coins, coupled with its relatively cheap fees and coherent and non-fragmented product suite, may have been a key driver.
The report also said that since the beginning of the year, the total locked value of prediction markets has increased by about 212%, exceeding $108 million for the first time. Polymarket is dominant, controlling about 75% of the market, and its monthly trading volume increased by about 500% in July compared to January. Tether remains the leader in the stablecoin space, with a high interest rate environment and increased adoption driving its business, making it more profitable than major Wall Street investment banks such as Morgan Stanley and Goldman Sachs. The NFT market has been in a slump, with sales falling by more than 70% since its peak in 2021. Profile picture NFTs (PFP) seem to be in a particularly disadvantaged position, with even the base price of popular projects such as CryptoPunks falling by more than 50% this year. Pudgy Penguins has attracted some attention with the success of its physical plush toys, and its new consumer-oriented L2 layer Abstract may have some interesting updates. The best performing narrative this year is Meme coin, with a return of more than 280%. Structural reasons (i.e. 100% of tokens are typically unlocked and in circulation, with little (or no) venture capital participation) have at least partially contributed to the appeal and success of this segment, especially as awareness of the impact of unlocking large amounts of tokens becomes more widespread.
