- Binance releases a report on the current state of the market
- The crypto market cap more than doubled over the last year.
- Bitcoin breaks eight-month downtrend with surge.
As the crypto market gains momentum, traders look for signs of a potential bull run. According to Binance’s latest report, these signs may be here.
A significant increase in market cap, quarterly market growth, and recovering stablecoin supply all point to a bull market.Â
Binance Report Highlights Bull Run Signs
In its recent report published on December 7th, 2023, Binance Research delves into the current state of the cryptocurrency market. Notably, the report suggests signs of a transitioning phase towards a bull market.
Sponsored
Binance’s report underlines a striking year-to-date increase in the total cryptocurrency market capitalization by about 110%, adding over US$870 billion in value. This surge is particularly notable in the fourth quarter, where the market experienced a 55% rise, approximately amounting to US$596 billion. Such robust growth is a classic sign of a bullish market, indicating heightened investor confidence and a strong influx of capital into the crypto space.
A pivotal observation in the report is the recovery in the supply of the top five stablecoins, which turned positive for the first time since Q1 2022. This trend reversal in stablecoin supply is significant as it suggests restoring stability and trust in the market, often a precursor to sustained growth periods in the broader crypto market.
NFTs Rebound, DeFi Activity Surges
The report also showcases the recent recovery of the NFT and DeFi sectors. For one, after months of downturn, the NFT market showed a remarkable recovery, with volumes increasing nearly 200% month-on-month in November.
Sponsored
Leading this recovery is the Bitcoin network, with its ordinals. With over US$375 million in NFT transactions, Bitcoin ordinals exceeded Ethereum’s NFT volume.
November also saw a substantial fee increase for the top 20 crypto projects, around 84% higher than in October, coupled with an increase in DeFi Total Value Locked (TVL) and DeFi dominance.
On the Flipside
- Despite the promising signs of a bull market, the inherent volatility of the crypto market remains a persistent challenge.
- Regulatory uncertainties also continue to pose significant hurdles, affecting market stability and investor confidence.
Why This Matters
Binance’s comprehensive report offers vital insights into the crypto market’s trajectory, providing a nuanced understanding of current trends and future possibilities.
Read more about Binance’s efforts to bring in institutional traders:
Binance’s Triparty Deal to Bring Institutions into Crypto
Read more about Orbs’ partnership with THENA:
Orbs Invests $600K in THENA, BNB Chain Liquidity Layer
