Binance Research monthly report presents important insights into the crypto market

The December 2024 report highlights key developments in market capitalization, the rise of Bitcoin, the growth of Ethereum, and the expanding role of artificial intelligence in the cryptocurrency ecosystem.

Binance Research’s report highlights the significant changes taking place in the cryptocurrency industry in December 2024. On December 17, 2024, crypto market cap reached its highest point at $3.91 trillion, driven by institutional adoption and regulatory confidence.

Due to further buying and MicroStrategy’s inclusion in the Nasdaq 100, Bitcoin (BTC) reached an all-time high of $108,000. The increase was further supported by speculation that the US may adopt BTC as a strategic reserve asset. A $500 billion drop in market value stemmed from the Federal Reserve’s announcement later in the month that it would reduce its planned interest rate cuts for 2025 from four to two.

With a 123.4% increase in market value, BTC has become the seventh largest asset globally, surpassing Saudi Aramco and silver. The expansion was aided by BTC Halving, spot ETF approvals and the broader market recovery. Due to its 10% staking yield and inclusion as a collateral asset on Aave, Ethena’s USDe stablecoin based on Ethereum (ETH) has become the third largest stablecoin with a market valuation of $5.9 billion.

Decentralized spot and persistent trading volumes reached all-time highs of $326 billion and $356 billion, respectively. The total value locked in lending and liquid staking protocols rose to $55 billion and $71 billion, respectively. Solana’s (SOL) DeFi ecosystem has faced challenges such as a $1.1 billion drop in TVL and a 7% drop in daily active addresses. In contrast, Sui’s TVL increased to $1.8 billion, driven by key protocols such as Suilend and the NAVI Protocol.

AI agents have gained traction as startups like Virtual Protocol and ai16z have achieved multi-billion dollar valuations. As artificial intelligence and cryptocurrency become more integrated, these self-driving agents are being used for tasks such as market analysis and trading.

In December 2024, NFT trading volume on ETH reached $888.2 million. With the launch of the PENGU token, Pudgy Penguins experienced tremendous growth, while classic collections such as CryptoPunks and Bored Ape Yacht Club saw sales decline. The reduced activity in the relevant NFT markets was also noticed by other chains such as SOL and BNB Chain.

The report focuses on how changes in market dynamics, advancements in regulations, and advances in decentralized systems are changing the crypto ecosystem as it moves into 2025.