Global crypto market cap surges 104% YoY

Bengaluru: The market capitalisation of global virtual digital assets (VDA) has clocked a growth of over $720 billion in the current calendar year, marking a 44% rise in terms of year-to-date and 104% jump year-on-year (YoY). In fact it has added over $1.2 trillion since July 2023, according to a report by VDA infrastructure provider Binance.

The report highlighted that the crypto market growth has outpaced traditional investments. While some major stock indices such as Hong Kong’s Hang Seng Index and UK’s FTSE 100 have seen just single digit growth in the first half of the calendar, Bitcoin and Ethereum have outperformed them. It equated the performance of these two crypto currencies to that of bluechip stocks such as Alphabet, Amazon and Apple.

Richard Teng, CEO, Binance said, "The first half of 2024 has been remarkable for the global VDA market.”

Bitcoin has continued to be a standout performer, with its market dominance growing from around 50 per cent to over 55 per cent this year. This has been driven by events including the approval of US BTC exchange-traded funds (ETFs) in January, the fourth Bitcoin Halving event, and the launch of Runes in April. 

The launch of spot ETFs in the US has attracted over $17 billion in net inflows along with an average $2.5 billion in daily trading volume, further legitimising their position as an asset class, from a traditional finance perspective. In effect, they contributed to the overall acceptance of VDA as an asset class.

Teng added, “Bitcoin's increased market dominance and the enthusiastic reception of both Bitcoin and Ether ETFs highlight the growing appeal of VDAs."

Stablecoin supply, a key indicator of inflows into the VDA market, has reached approximately $165 billion, the highest level since May 2022. This figure is nearing the all-time high of around $188 billion, reflecting strong investor confidence and interest in this space.

Tether continues to lead the stablecoin market, benefiting from a high interest rate environment and increasing adoption. Its profitability has surpassed that of major Wall Street investment banks such as Morgan Stanley and Goldman Sachs, highlighting its pivotal role in the VDA ecosystem.

According to the report, prediction markets have experienced exponential growth, with total value locked increasing by approximately 212% since the beginning of the year, surpassing $108 million for the first time.

Memecoins have emerged as the best-performing narrative of the year, delivering returns of more than 280%. This success can be attributed to structural factors, including complete token unlocks and limited venture capital involvement, which have fostered broad community engagement and interest.