Total Capitalisation of Digital Assets Rose by 44 Percent in H1 2024: Binance

The global crypto sector has seen an increase in adoption this year, according to a report by crypto exchange Binance. The firm claims that the overall capitalisation of the crypto sector rose by 44 percent or $720 billion (roughly Rs. 60,45,112 crore) in the first half of 2024. The launch of crypto ETFs earlier this year has been named as one of the leading factors behind the growth of virtual assets among the global community of traditional investors. Crypto ETFs allow traders to engage with crypto assets through traditional market platforms, eliminating the need to enter an exchange to do so.

Digital Assets Market Capitalisation Reportedly Rose by 44 Percent

Between January and June, the report said, Bitcoin has continued to show growth followed by major events like the launch of BTC ETFs, the network's fourth halving, and the launch of Runes – a protocol created to address issues associated to Bitcoin-based token systems that depend on off-chain data and native tokens used for operations on the blockchain. Ether also tailed closely behind BTC through these months to show significant growth.

Bitcoin ETFs in the US have already managed to draw $17 billion (roughly Rs. 1,42,733 crore) in net inflows while also pulling in an average of $2.3 billion (roughly Rs. 19,310 crore) in everyday trading volume.

“While major stock indices such as the Hang Seng Index and FTSE 100 have shown only single digit returns, Bitcoin and Ethereum have significantly outpaced these indices, alongside notable stocks like Alphabet, Amazon, and Apple,” the report said. “This highlights the growing appeal and performance of VDAs in comparison to conventional investment options, contributing to the overall acceptance of VDA as an asset class.”

This year, Bitcoin attained its new all-time high after three years. In March, the price of BTC reached 73,737.94 (roughly Rs. 61.9 lakh). In the backdrop of regulatory challenges, geopolitical tensions, and political changes, BTC was trading at $59,446 (roughly Rs. 49.9 lakh) on Tuesday.

“Bitcoin's market dominance has grown from around 50 percent to over 55 percent this year,” the report noted.

Other Parameters That Reflect Growth of VDAs

In the report, Binance claimed that the prediction markets have seen a rise of 212 percent in its total value locked (TVL) since the start of 2024. With this, the amount linked to the prediction markets has spiked above the mark of $108 million (roughly Rs. 906 crore) for the first time ever – indicating that digital assets are intriguing more people to experiment with market predictions.

The influx of stablecoins into the crypto market has also shown a significant rise this year. Stablecoins are those crypto assets that are backed by traditional assets like fiat currencies. As per Binance, the rise in the supply of stablecoins acts as a crucial indicator of inflows being attracted by the digital assets market. Tether has emerged as the leader in the stablecoin market that reaped the benefits of the high interest rates. At present, Tether is trading at $1 (roughly Rs. 83) with its current market cap at $61.4 billion (roughly Rs. 5,15,547 crore), as per CoinMarketCap.

“Stablecoin supply has reached approximately $165 billion (roughly Rs. 13,85,354 crore), the highest level since May 2022. This figure is nearing the all-time high of around $188 billion (roughly Rs. 15,78,527 crore), reflecting strong investor confidence and interest in this space,” the report noted.

Along with stablecoins, memecoins as a category of crypto assets, have surfaced among the best performing class so far this year -- returning over 280 percent.

In a statement, Binance CEO Richard Teng said that the first six month of 2024 has seen a remarkable growth in the VDA market.

“The substantial growth in market capitalization, driven by significant events such as the approval of US spot ETFs and the launch of Bitcoin Halving, underscores the resilience and expanding influence of the ecosystem. At Binance, we are committed to creating more opportunities within the VDA and larger Web3 space, ensuring that our users and the broader community continue to benefit from this dynamic market in a safe and secure way,” Teng said.