search

Binance Research: The cryptocurrency market will continue to grow in 2025, driven by institutional adoption and the expansion of DeFi, which will promote market prosperity

ChainCatcher message, according to the latest monthly market insights report from Binance Research, the crypto market is expected to continue growing in 2025, driven by accelerated institutional adoption, evolving regulatory frameworks, and the expansion of the DeFi ecosystem.The Binance report emphasizes that Bitcoin's dominance in global assets has increased, and despite a significant pullback in late December last year, the overall market still shows strong fundamentals.December last year was a significant milestone for the cryptocurrency market, as the Federal Reserve decided to reduce the planned interest rate cuts for 2025 from four to two, leading the cryptocurrency market cap to rise to a record $3.91 trillion before falling to $3.41 trillion.This pullback wiped out $500 billion in market cap, but Bitcoin remains firmly in the seventh position among global assets (by market cap), surpassing Saudi Aramco and silver.Bitcoin's market cap grew by 123.4% last year, driven by the approval of spot Bitcoin ETFs and their subsequent record growth, as well as MicroStrategy's inclusion in the Nasdaq 100 index and continued adoption by institutional investors. This year's growth made Bitcoin the second-best performing asset among the top ten global assets, only behind Nvidia.The report points out that speculation around the U.S. potentially adopting Bitcoin as a strategic reserve asset further fueled Bitcoin's momentum. As capital shifts from altcoins to Bitcoin, its dominance continues to strengthen, solidifying its position as a leading asset class.Although the market has experienced volatility, Bitcoin's strong fundamentals and the increasing adoption in traditional finance may pave the way for continued growth in 2025.The report indicates that if current trends continue, Bitcoin could challenge higher positions in the global asset rankings, coming closer to gold.The DeFi sector has also witnessed significant growth, with decentralized spot and perpetual contract trading volumes reaching new highs of $326 billion and $356 billion in December, respectively.Hyperliquid is a major driver of this surge, accounting for over 60% of the total trading volume in decentralized perpetual contracts. Meanwhile, lending and liquid staking protocols also set historical highs of $55 billion and $71 billion, respectively.The stablecoin market has undergone a significant shift, with Ethena's USDe surpassing USDS to become the third-largest stablecoin by market cap at $5.9 billion.Additionally, Binance Research highlights the emerging role of AI agents in the crypto ecosystem. Leading AI agent tokens now have a market cap in the billions, with increasing adoption rates in trading and entertainment sectors.Despite adjustments at the end of the year, the report concludes that favorable regulatory developments, rising institutional participation, and technological advancements in DeFi and AI will enable the cryptocurrency market to continue expanding in 2025.

Binance Research: After soaring to a historic high of $3.91 trillion in December, the crypto market has retreated, with BTC's annual increase exceeding 123%

According to the "Market Insights for January 2025" report published by Binance Research, the crypto market capitalization soared to a historic high of $3.91 trillion in December 2024, driven by regulatory optimism, institutional adoption, and Bitcoin reaching an all-time high of $108,000. However, as the Federal Reserve reduced its interest rate cut plans for 2025 from four times to two, the market experienced a correction at the end of December, with a market cap evaporation of over $0.5 trillion.Bitcoin's market cap grew by approximately 123.4% for the year, becoming the seventh-largest asset globally, surpassing Saudi Aramco and silver, only behind Nvidia's performance. Key drivers included the approval of spot ETFs, Bitcoin halving, changes in monetary policy, and more crypto-friendly regulatory expectations.Additionally, the market cap of Ethena's USDe has reached $5.9 billion, surpassing DAI to become the third-largest stablecoin, thanks to its high yield and use as collateral on Aave. Decentralized spot and perpetual contract trading volumes reached historic highs of $326 billion and $356 billion in December, respectively, while decentralized perpetual trading volume grew over 370% for the year, primarily driven by Hyperliquid.The TVL in the DeFi sector also hit a new high, with lending protocols and liquid staking protocols reaching $55 billion and $71 billion, respectively. AI agents are gradually becoming an emerging hotspot in the crypto space, with related tokens reaching billions in market cap and an average daily exposure of about 100,000 times, with representative projects including Virtuals and ai16z's Eliza framework, as well as individual agents like aixbt.

10x Research: The cryptocurrency trading environment remains complex and volatile, with Bitcoin in a consolidation phase

ChainCatcher news, 10x Research stated in its latest report that the cryptocurrency trading environment remains complex and volatile during the U.S. Federal Open Market Committee (FOMC) meeting in December 2024 and the subsequent holiday season. However, there are still profit opportunities in specific areas. Bitcoin is in a consolidation phase during this period, showing no signs of a sustained upward trend, but fluctuating within a tactical trading range, which provides opportunities for strategic positioning rather than a simple bullish trend. While some initial enthusiasm is expected at the beginning of the new year, it is not the time to recreate the bullish sentiment seen from late January to March or from late September to mid-December 2024. A positive performance is anticipated at the start of the year, followed by a slight pullback before the release of the Consumer Price Index (CPI) data on January 15. If the inflation data is favorable, it may reignite optimism and drive the market up before Trump's inauguration on January 20. However, this momentum may weaken, and the market could slightly retreat before the FOMC meeting on January 29.From January to mid-November 2024, Bitcoin's dominance surged from 50% to 60%, creating significant resistance for altcoin performance. Although the dominance metric briefly plummeted to 53% within three weeks, igniting hopes for an altcoin season, it quickly rebounded to nearly 58% and then consolidated around 55%. This consolidation highlights Bitcoin's enduring dominance as the main driving force in the cryptocurrency market while also indicating that altcoins may face potential challenges—unless Bitcoin's dominance metric declines again.
ChainCatcher Building the Web3 world with innovators