Binance Research’s latest report reveals a booming crypto market in February 2024, with a 40% increase in total market capitalization driven by spot BTC ETF inflows and strong DeFi and NFT performance.
Binance Research, the research arm of the world’s largest cryptocurrency exchange, has released its latest report outlining key crypto market trends for February 2024. The report highlights a booming crypto market, with total market capitalization increasing by an impressive 40 % every month.
One of the main drivers behind this surge was the sustained inflows from spot bitcoin ETFs that were launched in the United States in January. According to the report, these ETFs attracted over $4.9 billion in net inflows in February, while outflows from Grayscale’s Bitcoin Trust were down significantly from the previous month.
The top 10 cryptocurrencies by market cap saw significant price gains in February, with Dogecoin (DOGE), Bitcoin (BTC), and Ethereum (ETH) leading the way with monthly gains of 46%, 45.5%, and 44.5%, respectively. The report notes that increased speculative appetite in bullish market conditions tends to favor meme coins, as evidenced by the strong performance of other popular tokens such as Shiba Inu (SHIB), Bonk (BONK), Pepe (PEPE) and Wifi (WIF).
The decentralized finance (DeFi) sector also saw steady growth, with total value locked (TVL) increasing by 50% in February. Ethereum, in particular, stood out among the top 10 chains by TVL, posting a 57% increase. DeFi derivatives volume hit a new all-time monthly high of $208 billion, a 62% increase from January, signaling a return to market speculation and growth in the DeFi derivatives infrastructure.
In the non-fungible token (NFT) market, trading volume remained relatively stable, with a modest increase of 3.3% from January to $1.23 billion. The Pandora NFT collection, which uses the experimental ERC404 token standard, took the spotlight with sales of $147 million, the highest among all collections.
Looking ahead, the Binance Research team has summarized notable events and token unlocks for March 2024, encouraging users to stay informed about the latest developments in the blockchain space. These include the Arbitrum token airdrop, the Cosmos Interchain Security launch, and the Polygon zkEVM Mainnet launch.
As the crypto market continues to develop and mature, reports like these from reputable sources like Binance Research provide valuable information for investors, traders, and enthusiasts. With spot Bitcoin ETFs driving significant inflows and the DeFi and NFT sectors showing strong growth, the outlook for the crypto market in 2024 looks promising.
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