2024 Ushers in Crypto Milestones: Spot ETFs, DeFi Volatility, & Regulatory Challenges
Summary:
The year 2024 began with significant strides in the crypto sector, including the U.S. SEC's approval of 11 Bitcoin spot ETFs, fuelling speculations for other cryptocurrencies. January saw a volatile DeFi market, with an impressive increase in the total value locked (TVL) in Sui and Pulse Chain. Meanwhile, regulatory complexities have impacted retail derivatives trading worldwide, leading to operation downsizing of major platforms like Crypto.com and Binance. Cointelegraph’s Research division released a comprehensive report offering a thorough industry overview.
The dawn of 2024 has been marked by considerable leaps in crypto industry circumstances. The notable approval of 11 American Bitcoin spot ETFs by the SEC on January 10th represents a crucial turning point in crypto's timeline. They outdid silver ETPs in merely a week of trading activity, promoting Bitcoin as the second-largest commodity traded on exchanges, stirring conjecture related to spot ETFs for diverse cryptocurrencies. The ensuing air of certainty amid various sectors regarding probable value escalations, particularly with the forthcoming Bitcoin halving in April, builds hope for future value appreciation.
The Cointelegraph Research Monthly Trends Report for February gives an account of the industry’s reaction to the inception of Bitcoin spot ETFs within the US. This study dissects an array of sectors, ranging from crypto-mining operations, derivatives markets, to the field of decentralized finance (DeFi), and many more. Offering a comprehensive insight into the current milieu while making sound predictions, the report promises a detailed directory for readers. A free downloadable version of the report can be attained from Cointelegraph's research portal.
January 2024 witnessed the decentralized finance domain reflecting the volatile and unpredictable nature of the larger cryptocurrency market. The unexpected compromise on Socket's security leading to a loss of $3.3 million in ETH added to the volatility. However, swift resolution of the exposed vulnerability by Socket's team and recovery of most of the stolen amount offered a silver lining.
Despite the rise in the price of numerous DeFi tokens and the total value locked at the month's onset, a slight dip was seen in the later part. However, Sui and Pulse Chain experienced a commendable enhancement in their TVL, with a growth of 107% and 189%, respectively. The spike in Pulse Chain's value is attributed to the growth of its native decentralized exchange, PulseX, while Sui's TVL increment rides high on two promising lending platforms, Navi Protocol, and Scallop Lend.
Stringent regulations and their lack of consistency across regions have largely tethered retail derivatives trading worldwide. Mounting difficulty in securing trading licenses signaled a halt in the operations for centralized exchanges (CEXs) and DeFi projects. These limitations forced key industry players, including Crypto.com and Binance, to downsize their services.
The Cointelegraph Research division comprises passionate brains from the blockchain realm, combining academic depth with practical insights. Devoted to content that's both insightful and precise, the team strives to present the finest of industry information.
With accumulated expertise in areas like traditional finance, technology, engineering, business, and research, the Cointelegraph Research team is perfectly poised for the newest Investor Insights Report.
Published At
2/9/2024 5:00:00 PM
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