The cryptocurrency market grew significantly during the first half of 2024, surpassing a market capitalization of $2,43 trillion.
This is revealed in the semi-annual report published by the Binance platform, which offers a detailed overview of the factors that influenced the recovery of cryptocurrency prices, as well as the dominant technological trends and advances in the market.
One of the report’s most notable findings is the impressive growth in cryptocurrency market capitalization. Between January and June, the report details, the market value of all existing crypto assets increased by 37,3%, reaching approximately $2,27 trillion at the time of the report.
However, the cryptocurrency market's peak this year was in March, when its market capitalization surpassed $2,76 trillion. At press time, the cryptocurrency market remains at a high level. Market capitalization of $2,43 trillion, according to data from CoinMarketCap.
Source: CoinMarketCap
The impressive growth that the market has experienced this year has been driven mainly by a strong performance in the price of cryptocurrencies in the first quarter, led by Bitcoin, which continued the positive trend observed in 2023.
Key factors that have contributed to the growth of the cryptocurrency market
As mentioned, Bitcoin has been the main driver of the cryptocurrency market recovery during the first months of the year.
During this period, el Bitcoin Dominance in the market grew significantly, driven by fundamental events such as the arrival of the fourth halving of the blockchain network and the approval of spot ETFs in the United StatesThe latter sparked massive interest and appetite from institutional investors, generating more than $15.000 billion in net inflows in just a few months.
According to the report, the approval of Bitcoin exchange-traded funds provided a positive boost for the leading cryptocurrency and the crypto market, in general.
The rise of DeFi and stablecoins
On the other hand, The rise of the decentralized finance (DeFi) sector, which saw a remarkable 72,8% increase in its TVL (Total Value Locked) in the first half, has also benefited the broader crypto market. According to data from DeFi platform Llama, DeFi TVL reached $94.100 billion in the first half.
The influx of capital experienced by the sector has benefited most projects within the DeFi ecosystem, facilitating the emergence of new protocols that are making previously inaccessible financial services now available to everyone on the blockchain, the report said.
Source: DeFi Llama
La stablecoins recovery has also been an influential factor in the growth of the cryptocurrency market. According to data cited in the report, stablecoin capitalization hit a two-year high, exceeding $161.000 billion. This represents a significant recovery that is only 14,5% below the peak reached in April 2022.
According to the report, the recovery of the stablecoin sector indicates the growing confidence that users have in these digital currencies and their important role in the crypto ecosystem.
GameFi and AI
El Web3 gaming sector witnessed strong user growth during the first quarter of the year, leading the sector to reach a peak market capitalization of $32.000 billion by the end of March.
Although enthusiasm for this sector has since cooled, the report highlights its significant participation and contribution to the growth of the crypto market during the first half of the year.
On the other hand, The synergies between Artificial Intelligence and cryptocurrencies have become increasingly evident, supporting the development of decentralized computing systems, AI agents capable of performing complex tasks, and solutions for identity verification. All of this has led AI-related tokens to outperform the broader market, recording a total market capitalization of over $26.000 billion.
According to the report, AI is taking advantage of the benefits offered by cryptocurrencies to carry out secure and direct transactions without the need for intermediaries.
Finally, the report notes: the growing institutional adoption and the evolution of regulatory frameworks as other factors that influenced the growth of the cryptocurrency market this year.
In line with the above, the report again highlighted the approval of Bitcoin spot ETFs as a significant milestone that is driving the massive institutional adoption of cryptocurrencies and as a key factor in the growth of the market. It also pointed out the evolution of macroeconomic conditions in the United States and the advances in the regulation of cryptocurrencies in the world, which have helped to create a more favorable environment for investment in the emerging digital asset market.
Trends for the second half of 2024
Considering the above, the report notes that institutional adoption of Bitcoin and cryptocurrencies will continue to be key to market growth. It also highlighted several technological advancements that are in development, such as solutions to improve Bitcoin scalability, the creation of new real-world asset (RWA) tokenization applications, the continued immersion of gaming companies in the Web3 gaming sector, and the growing investor confidence and participation in decentralized finance as factors that will continue to trend in the crypto market and will help further drive market recovery and growth in the second half of the year.
In conclusion, the growth of the cryptocurrency market in the second half of 2024 will continue to be influenced by the combination of factors that accelerated its recovery in the first half of the year, the report concluded.
