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Binance, the world’s largest cryptocurrency exchange, emphasizes in its semi-annual crypto industry report that the industry has experienced a relatively rapid recovery this year and its current state of health can be assessed as very good. The growing popularity of digital assets, combined with the involvement of institutional investors, creates a solid foundation for the industry’s continued growth and increasing recognition.
Some of the key findings of the study:
● The total crypto market capitalization has increased by 30% compared to the first half of the previous year, reaching $1.17 trillion on June 30.
● Bitcoin’s dominance over other cryptocurrencies this half year has reached its highest level since April 2021, while the correlation with the traditional financial system (TradFi) has now fallen to its lowest level in the last three years.
● Despite the decline in the overall market share of global stablecoins by
7%, USDT has managed to increase its market share by 26% this year.
● The derivative liquidity deposit market has become the largest DeFi sector.
The study also concluded that since the beginning of the year, Bitcoin trading volumes have increased by 185%, network transactions have increased by 58%, and the average amount of fees has increased by 143%. The increase in use of the BTC network is partly due to the high interest in Ordinals, which allow the creation and trading of NFTs on the Bitcoin network.
The total combined computing power (hashrate) used to secure the Bitcoin blockchain has increased by 40% since the beginning of the year. The Bitcoin Fear & Greed Index has doubled since January, indicating an increase in trader confidence.
Of the Tier 1 projects reviewed in the study, Solana experienced the strongest market capitalization growth in the first half of the year. Since the beginning of the year, the highest activity was observed on the BNB Chain network, with the network’s payment volume increasing by 113%, compared to, for example, Ethereum’s 48%. There was a similar trend in terms of the increase in active addresses, 118% (BNB Chain) and 63% (Ethereum), respectively.
One of this year’s biggest success stories is the rise of the liquidity deposit market and the emergence of the LSTfi sector (a combination of liquidity deposit tokens and DeFi), which has seen a 460% increase in deposits since April. Binance’s semi-annual report also detailed developments in the Layer 2 sector, where the rise of zkEVM and Polygon’s upcoming transition to Polygon 2.0 were key highlights. New Layer 3 designs that connect to existing Layer 2 networks are also discussed.
The study also paid attention to the new stablecoin market participants – USDD, crvUSD, GHO and LUSD – whose market share has increased by 54% since the beginning of the year.
In almost every area analyzed in the Binance study, the cryptocurrency industry has seen impressive growth in the first half of the year. Compared to the second half of 2022, the number of DeFi users has increased by 43%, there has also been an increase in trading with NFTs, although their prices have continued to decrease. The 10 most active funds have raised a total of $3.6 billion in the crypto sector in the first half of the year. The interest of institutional investors in the cryptocurrency market is also growing rapidly, central banks are moving forward with digital currency projects, many companies are creating their own blockchain projects, and suitable blockchain solutions are being sought for various real-world assets.
The research concludes that the season of “Bitcoin ETFs” has given a new impetus to the cryptocurrency market and Bitcoin has reached new highs during the year, increasing investor confidence. In the second half of the year, we expect new innovations, the increasingly widespread use and introduction of cryptocurrencies.
Research available on Binance Homepage:
https://research.binance.com/en/analysis/half-year-2023
By Binance
Binance is the world’s leading blockchain ecosystem and cryptocurrency infrastructure provider with a suite of financial products that includes the largest digital asset exchange by volume. Trusted by millions around the world, the Binance platform is designed to increase users’ monetary freedom and features an unmatched portfolio of cryptocurrency products and offerings, including trading and finance, education, data and research, social good, investment and incubation, decentralization, and infrastructure solutions, and more. For more information, visit the website
Binance
2023-07-24 09:34:49
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