The global crypto market is on an upward trajectory, bolstered by an 8% increase in total market capitalization in September 2024. This growth is fueled by favourable macroeconomic factors and innovations within the virtual digital asset (VDA) ecosystem, according to Binance Research, setting the stage for a promising final quarter.
Key economic developments, including the Federal Reserve’s decision to lower interest rates and China’s move to inject liquidity into its economy, have contributed to this resurgence. These actions have created a positive environment for both traditional equities and crypto assets, allowing for broad market growth.
Leading digital assets like AVAX, DOGE, and SOL saw notable gains in September, driven by technological upgrades and active community engagement. Wrapped Bitcoin (wBTC) continues to dominate the wrapped Bitcoin market, reaching an all-time high in weekly transactions and maintaining over 65% market share. This highlights wBTC’s deep liquidity and trusted position within decentralized finance (DeFi) markets.
Additionally, tokenized treasuries have more than doubled in value since the beginning of 2024, growing from $769 million to over $2.2 billion. This demonstrates increasing institutional interest in blockchain-based financial products, which offer secure and return-generating investment opportunities.
The DeFi sector has experienced substantial growth, with Total Value Locked (TVL) increasing by 9.6% in September. Emerging networks such as Sui, Base, and Sei saw significant gains, with Sei witnessing an impressive 102% surge in TVL. New DeFi protocols like Aerodrome on Base continue to attract capital inflows, highlighting the growing maturity and appeal of decentralized lending, staking, and trading platforms.
A key factor supporting the crypto market’s growth is its improved security measures. Total losses from hacks have decreased significantly, with $1.3 billion in losses reported in 2024, a reduction from previous years. Initiatives like Binance’s Secure Asset Fund for Users (SAFU) have played a vital role in restoring trust and confidence in the ecosystem.
Vishal Sacheendran, Head of Regional Markets at Binance, remarked, “The positive trends reflect the resilience and adaptability of the VDA ecosystem. With real-world asset tokenization reaching new milestones and DeFi gaining momentum, we see tremendous opportunities for both individual investors and institutions. Crypto’s role in the future financial system is becoming increasingly clear.”
As the crypto market continues to evolve, innovations in decentralized governance, institutional adoption, and technological advancements are expected to further bolster its growth. With real-world asset tokenization and DeFi driving expansion, the crypto market is positioned for sustained integration into global financial systems.
For the full report, Binance Research.