Binance Research shares insights on 2024 crypto trends

Category: Blockchain Crypto

Binance Research has spotlighted cryptocurrency trends for this year, including Bitcoin halving, AI integration, and institutional adoption.

In a report recently published on January 15, the Binance Research team shared a full analysis of the crypto market throughout 2023. The report also shared the team’s calculation for potential market impacts happening in 2024.

A team of research analysts consisting of JieXuan Chua, CFA, Moulik Nagesh, Shivam Sharma, and Brian Che is responsible for the report. The company has researched yearly crypto market trends for at least two years, starting from 2022.

The full report, titled “Full-Year 2023 & Themes for 2024,” is available to view and download at the Binance website. It focuses on the historical significance of Bitcoin halving, though cautioning against assured cause-and-effect outcomes.

A Bitcoin halving is an event that occurs approximately every four years, reducing the rate at which new bitcoins are created and issued to miners by half. This process is programmed to continue until the maximum supply of 21 million bitcoins is reached, which is estimated to occur around the year 2140.

Positive performance in 2023

Previously, in November 2023, Binance Research reported a significant 19 percent surge in total market capitalization in their analysis. The surge was primarily fueled by optimism surrounding spot Bitcoin ETFs, which the SEC finally approved on January 11.

The broader financial environment, marked by resilient global GDP growth and moderated inflation rates, also contributed to a conducive environment for risk assets such as cryptocurrencies,” the team wrote in the report’s summary.

Subsequently, their December 2023 report highlighted sustained upward trends in crypto, DeFi, and NFT markets.

In their latest report, Binance Research acknowledged the crypto market’s positive performance in December 2023. The research team cited a 15 percent month-over-month increase in market capitalization.

Non-Fungible Tokens (“NFTs”) rebounded impressively across Q4. December’s volumes of US$1.7B was the highest of 2023, with Bitcoin NFTs showing the most impressive growth,” the report summary read. “The NFT marketplace wars have been another key theme, with the upcoming Blur-aligned L2, Blast, an interesting upcoming development.

Upcoming 2024 crypto trends

Binance Research’s “Full-Year 2023 & Themes for 2024” further observes a potential surge in institutional crypto adoption for the year ahead. This points to major asset management firms such as BlackRock and Fidelity as signs of increasing interest in the sector’s long-term prospects.

On the technology front, the yearly report identifies the integration of artificial intelligence (AI), specifically applications like OpenAI’s ChatGPT, as an emerging area in crypto. The report suggests how AI can actively enhance the smart contract audit process, automate trades, and pair with predictive analytics for precise forecasts.

Regarding NFT, AI can empower generative art creation, intelligent and interactive NFTs, and optimize data analytics. Despite ongoing evolution, AI integration is still in its early stages and is expected to advance in trade automation and predictive analytics.

Additionally, Binance analysts highlight the upcoming real-world asset (RWA) tokenization trend. A RWA tokenization involves converting traditional assets like real estate, commodities, or financial instruments into digital tokens on a blockchain. This enhances liquidity, reduces counterparty risk, and improves global market access.

Tokenized treasuries represent digital versions of traditional bonds or fixed-income securities, tradable and manageable on a blockchain. Rising interest rates often boost demand for fixed-income securities, positioning tokenized treasuries as an appealing investment for diversification and inflation hedging.

The research looks ahead to changes in on-chain liquidity, ongoing security improvements in blockchain technology, and a concentration on the ownership economy. This includes decentralized physical network infrastructure and decentralized social media. Additionally, account abstraction is seen as a possible factor in simplifying the user experience of blockchain technology.

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