Markets
What Binance’s Semi-Annual Report Reveals About the Market in 2024
Thu Jul 18, 2024 ▪ 4 min read ▪ by Luc Jose A.
The world’s leading cryptocurrency exchange, Binance, is celebrating its seventh anniversary this month. This is an opportunity for the company to reflect on its past achievements and look to the future. On this occasion, Binance has released its semi-annual report for 2024, providing a detailed overview of the current state of the cryptocurrency market. Here are the key takeaways from recent developments and future prospects.
A Positive Report for the Cryptocurrency Market in the First Half of the Year
Binance’s report for the first half of 2024 reveals a remarkable growth of 37.3% in the total cryptocurrency market capitalization. This has reached approximately $2.27 trillion. This result is mainly driven by key events such as Bitcoin halving in April and the launch of spot BTC ETFs in the United States.
However, the second quarter saw a significant correction, with a 14.3% drop in total capitalization. Despite this, Richard Teng, CEO of Binance, remains particularly optimistic about the futureHe specifically stated: “We are celebrating our seventh anniversary with events and rewards for our users and we have great expectations for the future of the market.”
Innovations in the protocol sector
The report highlights significant developments in the Layer 1 and Layer 2 protocol domains. Bitcoin continues to dominate the market, supported by the explosion of protocols such as Runes and the approval of BTC ETFs. Ethereum, for its part, has strengthened its ecosystem with the explosion of restaking and the implementation of EIP-4844, which improves network efficiency.
Binance has also highlighted the development of its BNB network, with projects such as 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, especially in the zero-knowledge (zk) domain, has attracted many investors and developers.
The continued growth of DeFi and stablecoin markets
In terms of the DeFi sector, the report reveals a 72.8% increase in TVL, from $54.4 billion to $94.1 billion. Stablecoins have also seen a notable recovery, reaching a market cap of $161 billion. This figure is close to the levels before TerraUSD (UST) collapsed in April 2022. Tether (USDT) remains the market leader with a market cap of $112.9 billion, while Circle (USDC) and Ethena (USDe) have seen their market share increase.
The report also indicates that the NFT market is struggling, with sales declining and prices dropping. On the other hand, the Web3 gaming sector has maintained user growth despite a decline in token market cap. Projects like Pixels and Hamster Kombat have managed to attract players through airdrops and marketing initiatives.
In summary, Binance’s semi-annual report provides a comprehensive view of the current state of the cryptocurrency marketInvestors and observers will need to follow these developments closely to navigate a rapidly evolving crypto environment.
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Luke Jose 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 ever-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 the news, decipher market trends, convey the latest technological innovations and put into perspective the economic and social issues of this ongoing revolution.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Do your own research before making any investment decisions.