Markets
What Binance’s Half-Yearly Report Reveals About the Market in 2024
Thu Jul 18, 2024 ▪ 4 min read ▪ by Luc Jose A.
Binance, the world’s largest cryptocurrency exchange, is celebrating its seventh anniversary this month. It’s a chance for the company to reflect on its past achievements and look ahead to the future. To mark the occasion, Binance released its 2024 Half-Year Report, providing a detailed look at the current state of the cryptocurrency market. Here are the key takeaways from recent developments and future prospects.
Positive report for the cryptocurrency market in the first half of the year
Binance’s report for the first half of 2024 reveals a notable growth of 37.3% in the total cryptocurrency market capitalization. It reached approximately $2.27 trillion. This result is mainly due to key events such as Bitcoin Halving in April and the launch of BTC spot ETFs in the United States.
However, the second quarter saw a significant correction, with a 14.3% decline in total market capitalization. Despite this, Binance CEO Richard Teng remains particularly optimistic about the futureHe said: “We are celebrating our seventh anniversary with events and rewards for our users, and we have high expectations for the future of the market.”
Innovations in the protocol sector
The report highlights significant developments in both Layer 1 and Layer 2 protocols. Bitcoin continues to dominate the market, supported by the explosion of protocols like Runes and the approval of BTC ETFs. Ethereum, on the other hand, has strengthened its ecosystem with the explosion of resttaking and the implementation of EIP-4844, which improves network efficiency.
Binance has also highlighted the development of its own BNB network, with projects like opBNB and Greenfield. These projects aim to expand the capabilities of the blockchain.
The report highlights that the Layer 2 sector has been particularly dynamic, with a 90% increase in total value locked (TVL). The appeal of airdrops, particularly in the zero-knowledge (zk) project space, has attracted many investors and developers.
The continued growth of DeFi and stablecoin markets
In the DeFi sector, the report reveals a 72.8% increase in TVL, from $54.4 billion to $94.1 billion. Stablecoins also saw a notable recovery, reaching a market cap of $161 billion. This figure is close to levels before TerraUSD (UST) crashed in April 2022. Tether (USDT) remains the market leader with a cap of $112.9 billion, while Circle (USDC) and Ethena (USDe) saw their market share increase.
The report also points to challenges for the NFT market, with declining sales and price floors. In contrast, the Web3 gaming sector has maintained user growth despite a decline in token capitalization. Projects like Pixels and Hamster Kombat have managed to attract players through airdrops and marketing initiatives.
In summary, Binance’s semi-annual report offers a comprehensive view of the current state of the cryptocurrency marketInvestors and observers will need to follow these developments closely to navigate a rapidly changing crypto environment.
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Luc José A.
A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I am committed to raising awareness and informing the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. Every day, I strive to provide an objective analysis of current events, decipher market trends, relay the latest technological innovations and put into perspective the economic and societal challenges of this ongoing revolution.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decision.