All Eyes on BTC
Binance VIP & Institutional
Tailored digital asset solutions for institutions and high-net-worth clients on the world's largest crypto exchange
In November, the cryptocurrency market continued its upward trend, recording an 11% month-over-month increase in total market capitalization. The initial half of the month saw a dynamic surge, achieving a 12% gain. However, the latter part experienced fluctuations, notably on November 16 and 21, resulting in approximately 5% dips in total market capitalization. These pullbacks were typical market corrections following earlier rapid growth. Since October, the overall crypto market capitalization has risen by over 35%. As key bullish factors are gradually priced in, the market exhibits oscillations between bullish and bearish sentiments.
In a notable shift, November witnessed a departure from the historical trend of Ethereum consistently having higher transaction fees than Bitcoin. Surprisingly, for more than two-thirds of the month, average transaction fees on Bitcoin surpassed those on Ethereum, marking the widest gap in over two years, peaking at US$6.73 on November 22. While this trend had been observed on several days in October, November's disparity was particularly significant. The surge in Bitcoin fees was primarily attributed to increased activity on the Ordinals protocol, driven by a renewed interest in minting Bitcoin NFTs. This surge culminated in November recording the highest monthly sales of Bitcoin NFTs, exceeding US$376 million.
Read more in the December edition of Binance Research Monthly Market Insights.
DEX Ups & Downs
November saw considerable fluctuations in the Decentralized Exchange (DEX) transaction volumes, primarily driven by diverse market events. Despite these events causing a 20% drop from the start of the month, DEX volume managed to peak at $4.06 billion, coinciding with these events. In contrast to the DEX volume's decline, the total value locked (TVL) in DeFi managed to grow by 13%. Interestingly, alongside these economic movements, the NFT market on Arbitrum observed a notable surge. This growth, particularly significant due to the associated Arbitrum Odyssey and Arbitrum Day campaigns, reflected the broader trend of the burgeoning NFT space.
Binance VIP Piloting Banking Triparty Agreement
Binance has executed a groundbreaking cryptocurrency triparty arrangement with a banking partner and a pilot client. This solution enhances security for institutional investors managing off-exchange trading collateral. Addressing counterparty risk, it mirrors traditional financial frameworks, allowing tailored crypto-asset allocation based on risk tolerance.
Binance, the exclusive exchange offering this triparty solution, pioneers a secure avenue for institutional crypto trading. Open to Binance VIP, Institutional clients, and new investors seeking market liquidity, read the blog to find out more on our Banking Triparty solution.
Binance Blockchain Week Highlights
Over the two comprehensive days of insightful conversations at Binance Blockchain Week in Istanbul this month, we had one standout discussion with our Head of VIP & Institutional, Catherine Chen, alongside thought leaders from Keyrock, Skynet Trading, and the Gravity Team. The discussion delved into opportunities within the maturing crypto market and liquidity provision landscape.
Did you miss it live? Watch the panel here.
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Binance VIP Voices: Institutional Trader's Toolkit with Kaiko
This month, we had our fourth episode installment of Binance VIP Voices featuring Clara Medalie, Head of Growth at Kaiko, exploring the fundamental factors driving the evolution of crypto liquidity and beyond.
Watch the full episode here.
Spotlight: Things We're Keeping Our Eye On
JPMorgan Chase and Apollo executives announced the development of a tokenized enterprise mainnet as part of the Monetary Authority of Singapore’s Project Guardian pilot. This collaboration aims to enhance digital asset functionality for institutional banks, broker-dealers, and asset managers, ensuring KYC compliance. The enterprise mainnet, designed for scalability, enables the addition of applications to the network. The initiative, introduced in conjunction with five additional industry pilots by MAS on Nov. 15, focuses on testing various asset tokenization use cases. The collaboration between JPMorgan and Apollo addresses seamless investment, discretionary portfolio management, and automated portfolio rebalancing at scale.
In November, MicroStrategy, a business intelligence firm, added 16,130 Bitcoins (BTC) to its holdings, reaching a total of over $6 billion. Co-founder Michael Saylor revealed the acquisition cost around $593.3 million, with a per-Bitcoin price of $36,785. As of November 29, MicroStrategy reported holding 174,530 BTC, valued at approximately $6.6 billion, at an average price of $37,726.
Blockchain-based firm Superstate secured $14 million in a venture capital round for developing regulated, on-chain funds accessible to U.S. investors, aiming to leverage the benefits of tokenized assets as traditional finance and blockchain converge.
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