Binance assesses six months of crypto-market dynamics

Binance described positive momentum in the digital assets industry over the first six months of 2023, which “lays a solid foundation for future growth.” The report is provided to ForkLog.

According to the document, total market capitalization rose 30% year over year, reaching $1.17 trillion by the end of June.

Bitcoin dominance reached its highest level since April 2021. Meanwhile, the correlation of the leading cryptocurrency with the traditional market sits at a three-year low.

Trading volume of digital gold surged 185% since the start of the year, and the number of transactions rose 58%.

Average network fees rose by 143%, analysts attribute this to the hype around Ordinals.

Bitcoin’s hash rate also increased by 40%, and mining difficulty by 43%.

“The Fear and Greed Index” for Bitcoin has doubled since January, signaling heightened trader confidence.

Among other layer-one blockchains, Solana posted the largest capitalization growth — 105%, to $7.6 billion. The BNB chain has delivered the best year-to-date performance, recording a 113% rise in daily transactions versus 48% for Ethereum.

Liquid staking has become the largest sector in DeFi. Its total TVL has risen 460% since the start of the year.

Despite a 7% decline in the market capitalization of stablecoins, USDT’s share rose by 26%. The company also noted the emergence of competitors in the form of USDD, crvUSD, GHO and LUSD. The capitalization of the latter rose by 54% over six months.

According to Binance, the 10 largest crypto funds attracted a total of $3.6 billion in the first half of the year.

“Against the backdrop of global economic shifts, the crypto industry continues to thrive and demonstrate its resilience. […] These innovations, together with rising institutional participation, lay a solid foundation for the industry’s future growth and broad recognition,” said Vladimir Smerkis, Binance’s regional director for the CIS.

In mid-July, the world’s largest crypto exchange by trading volume celebrated six years. To mark the occasion, CEO Changpeng Zhao thanked staff, recalled milestones in the company’s history, and outlined plans for the future.