VICTORIA, Seychelles--(BUSINESS WIRE)--KuCoin Research, the dedicated research arm of KuCoin, a top 5 global cryptocurrency exchange, has released its monthly report for January 2024, providing in-depth insights into the latest developments in the cryptocurrency market. The report offers a comprehensive analysis of macroeconomic factors, stablecoins, public chains, Layer2 trends, inscriptions, investment projects, and regulatory policies.
The cryptocurrency market showcased an optimistic atmosphere around the end of 2023, fueled by factors such as the Federal Reserve's dovish turn, record highs in the US stock market, and increased positions in the Bitcoin options market. Net long positions of asset management institutions, and large holders remained high, indicating strong performance amid global macroeconomic changes. Stablecoin issuance continues to rise, driven by the growing issuance of USDT, while USDC stabilizes. The Bitcoin and inscription ecosystems have risen unexpectedly, triggering a wealth effect from the BRC20 tokens, which led to an influx of CEX, crypto veterans, and VCs into the inscription market.
High-speed public chains like Solana and Avalanche exhibited a strong rebound, propelling uptrends in sectors such as MEME, DePIN, and GameFi, resulting in inscription markets across various ecosystems to flourish. Layer2 trends, particularly in ETH Layer2, show a rebound in Total Value Locked (TVL) after a slowdown. Projects like Metis and Manta set historical highs in TVL, benefiting from expectations surrounding the Cancun upgrade in Q1 2024. Overall, public chain ecosystems, including Solana, Avalanche, and Cardano, demonstrate impressive TVL growth.
Despite the number of investment projects remaining high, seed rounds and strategic financing remained primary, with a notable increase in projects with financing exceeding $10 million. In contrast to the November cryptocurrency investment and financing market, the proportion of projects with financing below 10 million tokens decreased from 85% to 68.25% and the proportion of projects with financing between $10 million and $100 million increased to 22.22%. Sectors like Infrastructure, NFT, and Gaming attract the most attention, establishing a tripartite dominance alongside the Ethereum Virtual Machine (EVM) ecosystem. These changes in the proportion of projects and financing amounts reflect the resurgence of investment and financing in the Web3 market as well as the potential shifts in investor behavior.
The KuCoin Research January 2024 Monthly Report provides a thorough analysis of these key trends, offering valuable insights for investors, traders, and enthusiasts in the cryptocurrency space. For the full report, please visit KuCoin Blog.
About KuCoin
Launched in September 2017, KuCoin is a global cryptocurrency exchange with its operational headquarters in Seychelles. As a user-oriented platform with a focus on inclusiveness and community action reach, it offers over 800 digital assets and currently provides Spot trading, Margin trading, P2P Fiat trading, Futures trading, Staking, and Lending to its 30 million users in more than 200 countries and regions. KuCoin is currently one of the top 5 crypto exchanges according to CoinMarketCap. In 2023, KuCoin was named one of the Best Crypto Exchanges by Forbes and recognized as a highly commended global exchange in Finder's 2023 Global Cryptocurrency Trading Platform Awards. Learn more at https://www.kucoin.com/.
About KuCoin Research
KuCoin Research is a leading provider of research and analysis in the cryptocurrency industry. With a team of experienced analysts and researchers, KuCoin Research aims to deliver high-quality insights and reports to empower investors and industry professionals.
