In September 2024, the cryptocurrency market experienced an 8 per cent increase in total market capitalisation, driven by positive sentiment from the Federal Reserve’s decision to lower the federal funds rate and improved US labour market data, says a Binance Research report. The People’s Bank of China also reduced interest rates and the reserve requirement ratio to counteract deflationary pressures, injecting 1 trillion Yuan into the banking system.
These global macroeconomic developments led to rallies in major equity markets and the crypto market. However, future economic reports and central bank policies remain crucial to watch.
Tokenised treasuries have increased more than 2X since the beginning of 2024, growing from $769 million to over $2.2 billion. DeFi platforms have also experienced significant growth, with Total Value Locked (TVL) increasing by 9.6% last month.
This momentum continues into October, with several leading virtual digital assets (VDAs) reporting gains. Notably, AVAX, DOGE, and SOL saw substantial growth, benefiting from technological upgrades and community engagement.
The report indicated that Wrapped Bitcoin (wBTC) has maintained its leadership in the market, reaching an all-time high in weekly transactions. It continues to dominate with over 65 per cent market share in the wrapped Bitcoin market.
Networks such as Sui, Base, and Sei saw gains, with Sei witnessing a 102 per cent surge in TVL. The rise of innovative DeFi projects and protocols, such as Aerodrome on Base, continues to attract capital inflows, supporting the overall market expansion.
Security remains a top priority for the crypto industry, with total losses from hacks continuing their downward trend. As of 2024, hacks have resulted in $1.3 billion in losses, lower compared to previous years. The introduction of initiatives such as Binance’s Secure Asset Fund for Users (SAFU) has contributed to these improvements.
Vishal Sacheendran, Head of Regional Markets at Binance, said, “The recent positive trends in the crypto market reflect the resilience and adaptability of the virtual digital assets ecosystem. With real-world asset tokenisation reaching new milestones and DeFi continuing to gain momentum, we are seeing great opportunities for both individual investors and institutions alike. As global economic conditions improve, crypto’s role as a key component of the future financial system is increasingly becoming clearer.”