The Binance report revealed that on-chain metrics indicated a remarkable resurgence in gaming activity in 2023. Binance, the world’s largest cryptocurrency exchange by trading volume, has released its yearly report on the digital assets industry for 2023 and a possible outlook for the new year. In a blog post published on January 15, 2024, the company revealed that the industry witnessed a significant comeback with a 109% increase in total market capitalization after the year-long turbulence in 2022. Market Resilience amidst Turbulence The report, authored by the Binance research team, JieXuan Chua, CFA, Moulik Nagesh, Shivam Sharma, and Brian Chen, revealed that the market uptick was driven by substantial gains in the first (Q1) and fourth quarter (Q4) of 2023. Binance attributed
Topics:
Chimamanda U. Martha considers the following as important: Binance, binance news, binance research, Cryptocurrency News, News
This could be interesting, too:
Chimamanda U. Martha writes OSL Strengthens Partnership with Solomon JFZ Ahead of Hong Kong ETF Launch
Temitope Olatunji writes Japanese Metaplanet’s Purchase of Bitcoin Worth .25M Signals Growing Corporate Adoption
Godfrey Benjamin writes Here Are 3 Major Recent Cardano (ADA) Upgrades to Know
Steve Muchoki writes BNY Mellon Invests in Spot Bitcoin ETFs from BlackRock and Grayscale
The Binance report revealed that on-chain metrics indicated a remarkable resurgence in gaming activity in 2023.
Binance, the world’s largest cryptocurrency exchange by trading volume, has released its yearly report on the digital assets industry for 2023 and a possible outlook for the new year.
In a blog post published on January 15, 2024, the company revealed that the industry witnessed a significant comeback with a 109% increase in total market capitalization after the year-long turbulence in 2022.
Market Resilience amidst Turbulence
The report, authored by the Binance research team, JieXuan Chua, CFA, Moulik Nagesh, Shivam Sharma, and Brian Chen, revealed that the market uptick was driven by substantial gains in the first (Q1) and fourth quarter (Q4) of 2023.
Binance attributed the market performance in Q4 to the rise in optimism driven by the anticipated launch of Bitcoin spot exchange-traded funds, which was finally approved on January 10, 2024, by the US Securities and Exchange Commission (SEC).
The report also cited optimism around the upcoming Bitcoin halving in April as one of the critical factors that contributed significantly to the 109% increase in market cap in 2023.
Furthermore, Binance said the broader financial market, marked by resilient global GDP growth and moderated inflation rates, greatly impacted the market growth for risk assets such as cryptocurrencies.
Market Analysis: DeFi vs. NFTs
In terms of segments, the decentralized finance (DeFi) sector saw a robust growth of 38.9% year-on-year (“YoY”) compared to the non-fungible tokens (NFTs). The rise of liquid staking tokens (“LSTs”) and LSTf are major contributors to the positive performance of DeFi in 2023.
Additionally, the emergence of intent-centric architecture and the rising adoption of real-world assets also did an excellent job of pushing the DeFi sector for growth.
For NFTs, the sector started picking up towards the end of the year. According to the report, the NFT market experienced a rebound in Q4 2023 after decreased interest in digital artworks and other collectibles following the NFT boom in 2021.
The market recorded $1.7 billion in trading volume in December, with Bitcoin NFTs showing the most impressive growth.
The Binance report said the ongoing competition among NFT marketplaces emerged as a significant theme for the sector’s growth last year. The study also cited the imminent launch of the Blur-aligned Layer 2 platform, Blast, as a noteworthy development.
Regarding SocialFi, the introduction of friend.tech in August 2023 propelled the sector into the limelight, showcasing the market’s potential and its allure for creators seeking to monetize content.
Despite the initial success, activity on SocialFi platforms has waned. However, Binance believes the coming months will unveil whether there’s a potential resurgence in interest or if new trends will dominate the evolving landscape.
Eight Key Growth Themes for 2024
The Binance report revealed that on-chain metrics indicated a remarkable resurgence in gaming activity in 2023. The final week of the year witnessed a surge, with 12.6 million weekly unique active wallets—more than double the count at the beginning of the year, which stood at 5.8 million.
With the imminent launch of multiple games by renowned gaming giants, 2024 is poised to be an exciting year for gamers worldwide.
For 2024, Binance believes the crypto market will experience significant growth driven by eight key themes such as the Bitcoin ecosystem, ownership economy applications, artificial intelligence (AI), real-world assets (RWAs), on-chain liquidity, and institutional adoption.