Binance Research Year-in-Review Report Uncovers Crypto Industry Dynamics in 2023 and Trends Projected to Shape 2024
In Brief
In-depth report delves into a spectrum of crucial industry topics including Bitcoin, DeFi, NFTs, blockchain gaming, and more
Binance Research, the research arm of Binance which provides institutional-grade analysis and insights for cryptocurrency investors, today released its crypto industry year-in-review report, “Full-Year 2023 & Themes for 2024.” The industry report provides a comprehensive analysis of the cryptocurrency market’s performance over the past year and outlines eight trends projected to shape the industry landscape in 2024.
The crypto market staged a significant turnaround in 2023. Key takeaways of the report:
- Market capitalization increased by 109% in 2023, fueled by substantial gains in Q1 and Q4. The surge in the final quarter was driven by the optimism around Bitcoin ETF approvals and anticipation of Bitcoin’s upcoming halving. The broader financial environment, marked by resilient global GDP growth and moderated inflation rates, also contributed to a conducive environment for risk assets such as cryptocurrencies.
- Throughout 2023, Web3 projects attracted a total of 1173 investments, amassing a collective capital of US$9.0B. Of this, a substantial 36.5% was invested in infrastructure projects, followed by CeFi’s 13.3% and DeFi’s 8.6%. Despite the noticeable reduction in both investment volume and overall valuations in 2023, there are positive indicators including the signs of market recovery and substantial capital being allocated towards building infrastructure.
- Looking at on-chain metrics, there has been a resurgence in gaming activity going into the year-end. There were 12.6M weekly unique active wallets in the final week of the year, more than double the start of the year at 5.8M. 2024 is looking set to be an eventful year with the upcoming launches of several games by notable gaming giants.
- Non-Fungible Tokens (NFTs) rebounded impressively across Q4. December’s volumes of US$1.7B was the highest of 2023, with Bitcoin NFTs showing the most impressive growth. The NFT marketplace wars has been another key theme, with the upcoming Blur-aligned L2, Blast, an interesting upcoming development. It will be important to see OpenSea’s continued response to their dwindling market share numbers.
- Decentralized Finance (DeFi) saw robust growth in 2023 with TVL rising 38.9% year-on-year (YoY). The remarkable ascent of liquid staking tokens (LSTs) and LSTfi, the rising adoption of real-world assets, and the emergence of intent-centric architecture are notable developments that have contributed to growth of the sector.
- Despite a rebound in October 2023, the global stablecoin market capitalization saw a 5.2% decline YTD, accompanied by shifts in market dynamics. Centralized stablecoins continue to command 92% of the market, with Tether’s USDT increasing its dominance to 70.6%, even as new entrants such as Collateralized Debt Position (CDP) and LST-backed stablecoins emerged.
Drawing from their expert analysis, Binance Research also provided perspectives on eight intriguing themes anticipated to trend in the 2024 crypto landscape. These themes span various narratives and sectors, including: developments related to the Bitcoin ecosystem, the ownership economy, artificial intelligence (AI), real-world assets (RWAs), on-chain liquidity, institutional adoption, and more.
In the report, the Binance Research team shares, “As we envisage the future of the crypto market, the lessons of 2023 underline the ability of the industry to adapt, innovate, and grow, even amidst challenges. The strong recovery of 2023 serves as the foundation for more breakthroughs, growth, and possibilities for the crypto space.”
Covering everything from detailed monthly and quarterly industry insights to the latest thematic crypto narratives, Binance Research continues to be a beacon for informed crypto market interaction. This comprehensive year-end report is part of Binance Research’s continued commitment to lowering the barriers to entry into crypto, offering a thorough analysis of the crypto landscape to both newcomers and seasoned insiders looking to conduct their own research.
Binance Research invites all digital asset industry participants and those interested in broadening their crypto knowledge to read their latest industry report here.
About Binance
Binance is the world’s leading blockchain ecosystem and cryptocurrency infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. Trusted by millions worldwide, the Binance platform is dedicated to increasing the freedom of money for users, and features an unmatched portfolio of crypto products and offerings, including: trading and finance, education, data and research, social good, decentralization and infrastructure solutions, and more. For more information, visit: https://www.binance.com
About Binance Research
Binance Research is the research arm of Binance, the world’s leading cryptocurrency exchange. Since its launch in December 2018, Binance Research has quickly grown and carved out a niche for itself in the crypto research space, providing robust institutional-grade analysis, in-depth insights, and unbiased data for all individuals within the digital asset industry. Our analysts publish insightful thought pieces regularly on topics related to, but not limited to, the crypto ecosystem, blockchain technologies, and the latest market themes.
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About The Author
Gregory, a digital nomad hailing from Poland, is not only a financial analyst but also a valuable contributor to various online magazines. With a wealth of experience in the financial industry, his insights and expertise have earned him recognition in numerous publications. Utilising his spare time effectively, Gregory is currently dedicated to writing a book about cryptocurrency and blockchain.
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Gregory, a digital nomad hailing from Poland, is not only a financial analyst but also a valuable contributor to various online magazines. With a wealth of experience in the financial industry, his insights and expertise have earned him recognition in numerous publications. Utilising his spare time effectively, Gregory is currently dedicated to writing a book about cryptocurrency and blockchain.
