NFT, BTC ETF Buzz Boosts Crypto Cap, Revitalizes Market Before 2023 Ends: Binance

A report compiled by Binance over the weekend said the market valuation of the crypto sector has increased by 110 percent year-to-date. In the fourth quarter of 2023, the value of the crypto market increased by $870 billion, representing a 55 percent increase from the third quarter that ran between July and September of this year. The buzz around a Bitcoin ETF awaiting approval in the US, along with an improvement in non-fungible token (NFT) sales in recent months, has emerged as one of the top reasons why the crypto market cap value has climbed the ladder.

This change in market conditions has come as a breath of fresh air for investors who were part of the slow market since the end of 2021.

As Bitcoin climbed to its nineteen-month high of nearly $44,000 (roughly Rs. 36 lakh), NFTs built on the Bitcoin blockchain also saw their values ​​rise. Ordinary NFTs, which are minted on the smallest unit of BTC called a Satoshi, not only generated hype this year but became a tool that drew the market’s attention back to the NFT sector.

Binance said that over the past two months, two other important developments around Bitcoin have contributed to bringing life back into the crypto sector. The application by asset management firms like BlackRock to offer a BTC ETF in the US and the emergence of BTC’s first BRC-20 token Ordee – two notable events that helped Bitcoin prices surge, resulting in dragging other altcoins into a yearly recovery. taken.

“NFT volumes have broken their eight-month downtrend and are up nearly 200 percent month-on-month (MoM) in November. Bitcoin was the most popular chain, with NFT volume exceeding $375 million (roughly Rs. 3,128 crores), which was even higher than Ethereum NFTs, which earned $348 million (roughly Rs. 2,903 crores), the report said. “Bitcoin has had an eventful year with Ordinals and BRC-20 seeing a resurgence in interest in November. “The news of a spot Bitcoin ETF looks positive.”

Binance said that along with Bitcoin’s revived market performance, other factors have also contributed to the rise of the crypto market cap to its current valuation of more than $1.6 trillion (approximately Rs 133,48,856 crore).

The report notes that several alternative layer-1 blockchains have recently overtaken Ethereum. Both eco-friendly blockchain Solana and Telegram-related blockchain Toncoin have clearly managed to break into the market.

Similarly, the advent of Zero-Knowledge (ZK) protocols also started discussing broader use cases of blockchain technology.

In November, fees for the top 20 crypto projects also increased by 84 percent compared to October and 100 percent higher than September this year.

“The past few weeks have been exciting and a helpful change of pace compared to the building-focused months that came before. As the noise increases, new entrants join the market, and things become more frenetic, it is important to ensure you are tracking the right metrics and following important narratives,” the report said. Has gone.

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