Binance assesses the growth of the crypto industry in 2023
Date: 2023-07-23 Author: Karina Ziganova Categories: BLOCKCHAIN
Binance, the largest cryptocurrency exchange, has published a semi-annual report on the state of the cryptocurrency industry
The crypto industry saw impressive growth in almost all sectors in the first half of the year. In decentralized finance (DeFi), the number of users has increased by 43% since the beginning of the year. The total market capitalization of the industry increased by 30% year-on-year, reaching $1.17 trillion at the end of June. Moreover, non-fungible token (NFT) trading volumes have increased compared to the second half of 2022.
The report states that liquid staking has become the largest DeFi subsector in terms of total value locked (TVL). In April, the sector supplanted decentralized exchanges (DEXs) from the leading DeFi category in terms of TVL. Moreover, in three months, the TVL of liquid staking increased by 460%
In terms of funding, the top 10 funds raised a total of $3.6 billion in the first half of the year. Binance also notes an increase in institutional adoption, noting the growth of testing of digital national currencies (CBDCs), corporate blockchain projects and real assets on the network.
How the crypto market has changed
Bitcoin (BTC) trading volume has grown by 185% since the beginning of the year, while its network transactions have grown by 58% and average transaction fees by 143%. The increase in activity on the network may be due to the development of Bitcoin Ordinals.
In addition, the report examines the market performance of leading stablecoins and their new competitors who increased market share in 2023. These include USDD, crvUSD, GHO, and LUSD, with LUSD's market cap up 54% year-to-date.
What Binance thinks
Overall, analysts believe that the crypto market has benefited greatly from the surge in the number of applications for spot bitcoin ETFs. This will stimulate the growth of the market and increase investor confidence.
Therefore, Binance is looking forward to further innovation, wider adoption, and an even "brighter future" for the cryptocurrency market in the second half of 2023.
