James Ding
Aug 01, 2024 14:53
Binance Research reveals key insights from H1 2024, showing a 44% rise in crypto market cap and notable performances from Bitcoin and Ether.
The first half of 2024 has been a remarkable period for the cryptocurrency market, marked by substantial growth and significant developments. According to Binance Research, the total crypto market capitalization has surged by approximately 44% year-to-date, adding over $720 billion. On a year-on-year basis, the market cap has increased by more than 104%, which equates to an addition of over $1.2 trillion since July of the previous year.
Bitcoin’s Dominance and Market Performance
Bitcoin (BTC) has had an eventful year, driven by the approval of the U.S. spot ETF in January, the fourth Halving event, and the launch of Runes in April. This has led to increased activity in Bitcoin’s scalability and decentralized finance (DeFi) sectors. Consequently, Bitcoin’s market dominance has grown from around 50% to over 55% this year.
In comparison to traditional financial investments, Bitcoin and Ethereum (ETH) have outperformed notable stocks such as Alphabet, Amazon, and Apple. While major stock indices like the Hang Seng Index and FTSE 100 have shown single-digit returns, Bitcoin and Ether have significantly led the way in terms of performance.
ETFs and Stablecoin Supply
The introduction of U.S. spot Bitcoin ETFs has been exceptionally well-received, attracting over $17 billion in net inflows and averaging $2.5 billion in daily trading volume. The recent launch of U.S. spot Ether ETFs has further boosted the industry, adding legitimacy from a traditional finance perspective.
Stablecoin supply, an indicator of potential buying pressure, has reached its highest level since May 2022, standing at approximately $165 billion. This figure is fast approaching the all-time high of around $188 billion.
Ethereum’s Restaking and Solana’s DEX Activity
Restaking has emerged as a dominant narrative for Ethereum in 2024, attracting over $18 billion in Total Value Locked (TVL). While EigenLayer leads this space, new competitors like Karak and Symbiotic are also making their mark.
Solana’s decentralized exchange (DEX) activity has reached new all-time highs, both in terms of volume and weekly traders. The chain’s popularity, driven by memecoins and its relatively low fees, has significantly contributed to this surge.
Rise of Prediction Markets and Tether’s Dominance
Prediction markets have experienced a 212% increase in TVL since the beginning of the year, surpassing $108 million for the first time. Polymarket has been particularly dominant, controlling about 75% of the market and seeing a 500% increase in monthly volume from January to July.
Tether remains a leader in the stablecoin space, benefiting from the high-interest-rate environment and increased adoption. The company has become more profitable than major Wall Street investment banks like Morgan Stanley and Goldman Sachs.
NFT Market and Memecoin Performance
The NFT market has seen a downturn, with sales volumes down over 70% since their peak in 2021. Profile-picture NFTs (PFPs) have been particularly affected, with even CryptoPunks experiencing a more than 50% decline in floor price this year. However, Pudgy Penguins has made some headway with the success of their physical plush toys and upcoming consumer-focused Layer 2 solution, Abstract.
Memecoins have been the best-performing segment this year, delivering returns of over 280%. The appeal of memecoins is partly due to their structure, where 100% of tokens are commonly unlocked and circulating, with minimal venture capital involvement. This has increased their attractiveness as awareness of significant token unlocks grows.
For detailed insights and a comprehensive review of the top 10 charts from H1 2024, refer to the full report by Binance Research.
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