The global crypto sector has seen a surge in adoption this year, according to a report by crypto exchange Binance. The company claims that the total capitalization of the crypto sector has increased by 44 percent or $720 billion (approximately Rs. 60,45,112 crore) in the first half of 2024. The launch of crypto ETFs earlier this year has been cited as one of the major factors behind the growth of virtual assets among the global community of traditional investors. Crypto ETFs allow traders to deal with crypto assets via traditional market platforms, eliminating the need to set foot on an exchange to do so.
Digital asset market cap reportedly surged 44 percent
Between January and June the report said, Bitcoin has continued to grow, followed by major events such as the launch of BTC ETFs, the network’s fourth halving, and the launch of Runes – a protocol created to address issues associated with Bitcoin-based token systems that rely on off-chain data and native tokens used for on-blockchain operations. Ether also trailed closely behind BTC in these months to show significant growth.
Bitcoin ETFs in the US have already attracted $17 billion (approximately Rs. 1,42,733 crore) in net inflows and averaged $2.3 billion (approximately Rs. 19,310 crore) in daily trading volume.
“While major equity indices such as the Hang Seng Index and FTSE 100 have only delivered single-digit returns, Bitcoin and Ethereum have significantly outperformed these indices, along with notable stocks such as Alphabet, Amazon and Apple,” the report said. “This highlights the growing appeal and performance of VDAs relative to conventional investment options, contributing to the mainstream adoption of VDA as an asset class.”
This year, Bitcoin reached its new all-time high after three years. In March, the price of BTC reached 73,737.94 (approximately Rs. 61.9 lakh). Amid regulatory challenges, geopolitical tensions and political changes, BTC traded at $59,446 (approximately Rs. 49.9 lakh) on Tuesday.
“Bitcoin’s market dominance has grown from around 50 percent to over 55 percent this year,” the report said.
Other parameters reflecting the growth of VDAs
In the report, Binance claimed that prediction markets have seen a 212 percent increase in total locked value (TVL) since the start of 2024. With this, the amount tied to prediction markets has risen above the $108 million (roughly Rs. 906 crore) mark for the first time — indicating that digital assets are intriguing more people to experiment with market predictions.
The inflow of stablecoins into the crypto market has also seen a significant increase this year. Stablecoins are crypto assets that are backed by traditional assets such as fiat currencies. According to Binance, the increase in the supply of stablecoins acts as a crucial indicator of inflows attracted to the digital asset market. Tether has emerged as a leader in the stablecoin market that has benefited from the high interest rates. Currently, Tether is trading at $1 (approximately Rs. 83) with its current market cap at $61.4 billion (approximately Rs. 5,15,547 crore), according to MintMarketCap.
“The stablecoin supply has reached around $165 billion (approximately Rs. 13,85,354 crore), the highest level since May 2022. This figure is approaching an all-time high of around $188 billion (approximately Rs. 15,78,527 crore), reflecting strong investor confidence and interest in this space,” the report said.
Along with stablecoins, memecoins are among the best-performing crypto assets category so far this year, with returns of over 280 percent.
Binance CEO Richard Teng said in a statement that the first six months of 2024 have seen remarkable growth in the VDA market.
“The substantial growth in market cap, driven by major events such as the approval of US spot ETFs and the launch of Bitcoin Halving, underscores the resilience and growing influence of the ecosystem. At Binance, we are committed to creating more opportunities within the VDA and the greater Web3 space, ensuring that our users and the broader community continue to benefit from this dynamic market in a safe and secure manner,” Teng said.
