Binance Research: Key Trends in Crypto – February 2024
Main Takeaways
This article previews the recent Binance Research report discussing key developments in crypto markets over the past month.
January 2024 was largely a period of consolidation for cryptocurrency markets, with total market capitalization increasing only 0.4% as the anticipated spot bitcoin ETFs successfully launched in the US.
DeFi markets continued their uptrend, witnessing a 4.1% growth in TVL. Meanwhile, monthly NFT trading volumes declined 33.1%.
Thanks to Binance Research, you can take advantage of industry-grade analyses of the processes shaping Web3. By sharing these insights, we hope to empower our community with the latest knowledge from the field of crypto research.
Today’s article explores key Web3 developments in January 2024 to provide an overview of the crypto ecosystem’s current state. We analyze the performance of crypto, DeFi, and NFT markets before previewing major events to look out for in February 2024.
Crypto Market Performance in January 2024
January 2024 was largely a period of consolidation for cryptocurrency markets, with total market capitalization increasing only 0.4%. The successful launch of spot bitcoin ETFs in the US played a significant role in these developments. Contrary to expectations, BTC’s price reached a high of nearly $49,000 following the ETF approvals on January 10 before undergoing notable corrections.
Nonetheless, examining the capital flows of these ETFs paints a positive picture. Despite Grayscale’s significant outflows, aggregate inflows remain positive overall. Regardless of short-term price action, January 2024 remains a historical milestone for the cryptocurrency industry.
Monthly change in crypto market capitalization (%)
Source: CoinMarketCap (January 31, 2024)
Monthly price performance of the top 10 coins by market capitalization
The top ten coins by market capitalization saw mixed results in January 2024, reflecting the market’s consolidation phase. With the launch of anticipated spot ETFs, BTC remained at the center of attention. However, this significant development did not translate to major price movements, with the token’s price increasing 1.6% as the broader market’s sentiment remained conservative.
TRX and LINK were the top performers of the month, with modest gains of 4.0% and 3.5%, respectively. Alongside BTC, ETH remained relatively stable, with a price increase of 2.7%. Notably, BNB and SOL also displayed resilience to broader market corrections, closing the month with decreases of just 1.6% and 0.1%, respectively. The rest of the coins posted relatively poor price performance, with XRP seeing the biggest decline of 17.1%.
Decentralized finance (DeFi)
Total value locked (TVL) in DeFi markets grew 4.1% in January, with Manta, Solana, Ethereum, and Arbitrum seeing notable gains. This uptrend marks the fourth consecutive month of growth for DeFi since it finally broke its downtrend in October 2023. Liquid restaking continues to be a dominant trend on Ethereum, with Renzo Protocol, Ether.fi, and KelpDAO recording monthly TVL gains of 1518.9%, 414.6%, and 90.5%, respectively.
TVL share of top blockchains
Non-fungible tokens (NFTs)
Monthly NFT trading volume
Despite a strong end to 2023, monthly NFT trading volume fell 33.1% in January 2024 to $1.19 billion. This decline was largely attributed to a cooldown in the sale of Bitcoin and Solana NFTs, with monthly trading volumes decreasing 61.4% and 34.4%, respectively. Despite these broad declines, Polygon stood out with a 136.6% increase in trading volume, largely dominated by the launch of Gas Heroes, a video game developed by Find Satoshi Labs, in early January.
Upcoming Events
To help users stay updated on the latest Web3 news, Binance Research has summarized notable events and token unlocks for the month to come. Keep an eye on these upcoming developments in the blockchain space.
Notable events in February 2024
Source: Binance Research
Largest token unlocks in US$ terms
Binance Research
The Binance Research team is committed to delivering objective, independent, and comprehensive analyses of the crypto space. We publish insightful takes on Web3 topics, including but not limited to the crypto ecosystem, blockchain applications, and the latest market developments.
This article is only a snapshot of the full report, which contains further analyses of the most important market charts from the past month. It also dives deeper into the capital flows of spot BTC ETFs, the competition between dYdX and Uniswap, Telegram bots, and Ethereum execution clients.
To read the full version of this report, click here.
Further Reading
Disclaimer: This material is prepared by Binance Research and is not intended to be relied upon as a forecast or investment advice and is not a recommendation, offer, or solicitation to buy or sell any securities or cryptocurrencies or to adopt any investment strategy. The use of terminology and the views expressed are intended to promote understanding and the responsible development of the sector and should not be interpreted as definitive legal views or those of Binance. The opinions expressed are as of the date shown above and are the opinions of the writer; they may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources deemed by Binance Research to be reliable, are not necessarily all-inclusive, and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given, and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Binance. This material may contain ‘forward-looking’ information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader. This material is intended for information purposes only and does not constitute investment advice or an offer or solicitation to purchase or sell in any securities, cryptocurrencies, or any investment strategy, nor shall any securities or cryptocurrency be offered or sold to any person in any jurisdiction in which an offer, solicitation, purchase, or sale would be unlawful under the laws of such jurisdiction. Investment involves risks.