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This article previews Binance Research's recent 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 by just 0.4% as Bitcoin spot ETFs successfully launched in the US.
DeFi markets continued their upward trend with 4.1% TVL growth. Meanwhile, monthly NFT trading volumes fell 33.1%.
Thanks to Binance Research, you can leverage world-class analytics into the processes that shape Web3. By sharing this information, we hope to provide our community with the latest knowledge on research surrounding cryptocurrencies.
Today's article explores key Web3 developments in January 2024 to provide an overview of the current state of the crypto ecosystem. We analyze the performance of the crypto, DeFi and NFT markets before showing the key events to watch in February 2024.
Cryptocurrency Market Performance in January 2024
January 2024 was a period of consolidation for cryptocurrency markets, with the total market capitalization increasing by just 0.4%. The successful launch of Bitcoin spot ETFs in the US played a key role in these developments. Contrary to expectations, BTC price reached a high of nearly $49,000 following ETF approvals on Jan. 10, before undergoing major corrections.
However, examining the capital flows of these ETFs paints a positive path. Despite Grayscale's significant withdrawals, aggregate inflows remain positive overall. Regardless of short-term price action, January 2024 remains a historic milestone for the cryptocurrency sector.
Monthly change in crypto market capitalization (%)
Source: CoinMarketCap (January 31, 2024)
Monthly price performance of the top 10 coins by market capitalization
The top 10 coins by market capitalization had mixed results in January 2024, reflecting the market's consolidation phase. With the anticipated launch of spot ETFs, BTC remained in the spotlight. However, this important development did not translate into major price movements, with the token's price increasing by 1.6% as market sentiment remained conservative.
TRX and LINK were the best performers of the month, with modest gains of 4.0% and 3.5%, respectively. Along with BTC, ETH remained relatively stable with a 2.7% price increase. BNB and SOL also showed resilience in broader market corrections, closing the month with drops of just 1.6% and 0.1%, respectively. The rest of the coins recorded relatively poor price performance, with XRP recording the biggest drop 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. Liquidity Restaking continues to be a dominant trend on Ethereum, with the Renzo protocol, Ether.fi, and KelpDAO recording monthly TVL gains of 1518.9%, 414.6% and 90.5% respectively.
TVL share of the main blockchains
Non-fungible tokens (NFTs)
NFT monthly trading volume
Despite a strong finish to 2023, monthly NFT trading volume fell 33.1% in January 2024 to $1.19 billion. This drop was largely attributed to a slowdown in the sale of Bitcoin and Solana NFTs, with monthly trading volumes decreasing 61.4% and 34.4%, respectively. Despite these big drops, Polygon stood out with a 136.6% increase in trading volume, in part due to the launch of Gas Heroes, a video game developed by Find Satoshi Labs in early January.
next events
To help users stay up to date with the latest Web3 news, Binance Research has summarized next month's notable events and token unlocks. Keep an eye on upcoming developments in the blockchain space.
Important events in February 2024
Fonte: Binance Research
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Binance Research
The Binance Research team is committed to providing objective, independent, and comprehensive analysis of the crypto space. We publish insightful takes on Web3 topics, including but not limited to the cryptocurrency ecosystem, blockchain applications, and the latest market developments.
This article is just an overview of the full report, which contains analysis of the most important market charts from the last month. He also delves into BTC spot ETF capital flows, the competition between dYdX and Uniswap, Telegram bots, and Ethereum execution clients.
To read the full version of this report, click here.
Further reading
General Disclosure: This material is prepared by Binance Research and should not be considered a prediction or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities, bonds or cryptocurrencies, or adopt any strategy of investment. The use of terminology and opinions expressed are intended to promote understanding and responsible development of the industry and should not be construed as definitive legal opinions or those of Binance. The opinions expressed are as of the date indicated above and are the opinions of the writer, which may change as conditions vary. The information and opinions contained in this material are derived from different proprietary and non-proprietary sources considered reliable by Binance Research, are not necessarily comprehensive, and their accuracy cannot be guaranteed. As such, there is no guarantee of accuracy or reliability and Binance is not responsible in any way for errors and omissions (including the liability of any person due to negligence). This material may contain "forward-looking" information that is not purely historical in nature. This information may include, among other things, projections and forecasts. There is no guarantee that any predictions made will occur. The decision to rely on the information contained in this material is the sole responsibility of the reader. This material is for informational purposes only and does not constitute investment advice, nor an offer or solicitation to buy or sell any securities, bonds, cryptocurrencies or any investment strategy. No security or cryptocurrency will be offered or sold to any person in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the laws of that jurisdiction. Investments involve risks.
