The Bybit Institutional Report for 2024 disclosed a notable rise in the monthly trading volumes at various centralized exchanges (CEXs) between October 2023 and March 2024.
Within that time period, the value of the crypto market grew from just over a trillion dollars to more than two and a half trillion dollars.
Bullish Trends and BTC as a Hedge
The report indicates that trading volumes at OKX have experienced a significant jump of 278% since last October. Binance comes in second place with a notable rise of 239%.
Bybit Exchange emerged as one of the fastest-growing platforms, showing a remarkable 264% growth in trading volumes. Additionally, the U.S.-based exchange Coinbase experienced an uptick in volumes, rising by 193%, slightly below the industry’s average growth rate of 255%.
The significant increase in CEX trading activity is mainly due to Bitcoin‘s price jumps, happening around the same time as the approval of US Bitcoin Spot ETFs.
The report’s results show a positive outlook for the derivatives market, specifically in Bitcoin (BTC) and Ethereum (ETH), with increasing tendencies.
In March and April, there were some fluctuations in investor behavior. However, their overall attitude remained optimistic, as indicated by the significant increase in the price of call options for Bitcoin and Ethereum futures contracts.
The upward trend indicates that investors have a positive outlook for the future value of these two cryptocurrencies, believing they will increase in price as the year goes on.
The report brings to light how Bitcoin (BTC) functions as a protective asset in conventional finance (TradFi) investments. The correlation between BTC, Ethereum (ETH), and traditional financial assets like stock markets and bonds, typically remains under 3%.
Investing 5% of your portfolio in Bitcoin and Ethereum, with an equal split between the two, could enhance the risk-adjusted gains of your S&P 500 investment. This allocation might boost the Sharpe ratio from 2.20 to 3.15, which equals a noteworthy improvement of 43.6%.
The impact becomes more pronounced when investors choose to take on greater risk by investing larger amounts in cryptocurrencies.
Challenger Chains and VC Funding Resurgence
In the past quarter of 2023, the tokens of challenger platforms have surpassed Ethereum’s performance, bringing about noteworthy growth for Challenger chain assets.
Among the challenger tokens, Solana (SOL) stood out as a front-runner. Since last year, it has continued to gain ground with a substantial TVL (Total Value Locked) and high transaction volume.
The revival of crypto venture capital (VC) financing is evident. Though infrastructure initiatives continue to draw significant VC investment, recent reports unveil funds allocated to diverse fields such as gaming and artificial intelligence projects.
In the last quarter of 2023, there were 174 venture capital deals announced, a 21% increase from the previous quarter, with a total funding amount disclosed at $1.42 billion, which is a 29% rise. The first quarter of 2024 witnessed a significant jump, with 243 deals and a disclosed funding amount of $1.94 billion, signifying a further increase of 36% compared to the last quarter.
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2024-04-21 19:30