Binance Research

Could AI agents become the next big players in crypto markets?

Our latest #Binance research report dives into the convergence between AI agents and crypto, discussing its origins, major projects, challenges, and future implications.

Check it out ⬇️
https://www.binance.com/en/research/analysis/exploring-the-future-of-ai-agents-in-crypto

1/ Robinhood, Paxos, Anchorage Digital, among others, have launched the Global Dollar Network to drive adoption of a new stablecoin, USDG. Issued by Paxos in Singapore, USDG complies with the Monetary Authority of Singapore's (“MAS”) upcoming stablecoin framework. The network aims to distribute income from USDG’s reserves among partners, as distinct from majors like USDT and USDC.

2/ The MAS announced plans to advance tokenization in financial services, focusing on creating commercial networks, developing market infrastructure, fostering industry frameworks, and enabling shared settlement facilities. MAS also launched the Global Layer One (“GL1”) initiative for cross-border digital infrastructure and published industry frameworks for tokenized fixed income and funds.

3/ Magic Labs and Polygon have launched Newton, a cross-chain network designed to make using dApps across multiple blockchains seamless. Built on Polygon’s AggLayer, Newton lets developers build dApps that work across different chains without requiring users to manage multiple wallets. Magic Labs will also integrate its chain-agnostic crypto wallet, Passport, into Newton.

Time to look at November's market insights!

Discover the current market landscape and key insights on:

🔸 BTC & S&P500 Correlation
🔸 Application Revenues
🔸 New Token Launches
🔸 Memecoins Growth

…and more.

Read here ⬇️
https://www.binance.com/en/research/analysis/monthly-market-insights-2024-11

In case you missed it:
- Donald Trump is returning to the White House (Inauguration is in Jan 2025).
- The Republicans look likely to control both the Senate and the House.
- Overall, these give the Republicans powerful leverage in policy making (e.g., tax/fiscal spending).

Here's how the markets have reacted:
- Crypto market is on fire: BTC hit a new ATH, with altcoins and memecoins rallying. Trump's win is seen by many as positive for crypto. Remember, he also has crypto exposure through his NFT collections and World Liberty Financial (DeFi).
- Equity markets are up: Stock futures are positive, with S&P 500 on track for a potential record high. Trump's plans for deregulation, tax cuts and increased government spending is expected to stimulate the economy. Though, look out for higher tariffs.
- Higher treasury yields/long-term interest rates: 10-year yields have surged to 4.5%, a six-month high, driven by expectations that Trump's agenda could drive inflation higher (here we go again).
- Stronger U.S. dollar: At risk of over simplification, higher inflation = higher interest rates = stronger dollar.
- China stocks/Yuan feeling the impact: The yuan declined 1% v.s. USD, marking its largest decline in over a year. China H-shares tumbled, with the Hang Seng China Enterprises Index (HSCEI) down around 2.6% today.

What's next:
- Short-term: Expect more volatility in the coming days. Markets have the tendency to whipsaw. Liquidations may cause huge moves in the market.
- Medium-term: More fiscal spending, lower taxes, supportive regulations (hopefully) bode well for crypto.
- Others: Fed's FOMC meeting happens on Thursday. Markets still expect a 0.25% rate cut, which aligns with our view. However, we expect the number of rate cuts ahead to be fewer than initially expected, especially if inflation picks up with increased spending.

Memecoins - love them or hate them, they're certainly the talk of the town.

Dive into an analysis of the rise of memecoins, and their potential impact on the crypto industry.

Check it out ⬇️
https://www.binance.com/en/research/analysis/understanding-the-rise-of-memecoins/

Highlights 🧵:
1/ Binance has announced a partnership with Amazon Web Services (“AWS”) to leverage its generative AI capabilities for improving user onboarding, customer support, and internal system diagnostics. This collaboration has already led to significant improvements and Binance plans to further expand the use of AWS's generative AI technologies across various operational domains to drive innovation.

2/ The U.S. Treasury Department highlighted in its Q4 2024 Fiscal Year Report that stablecoin growth drove increased demand for U.S. Treasuries, estimating that US$120B of stablecoin collateral is invested in Treasuries. Tether, the largest stablecoin issuer, reportedly holds US$81 billion in T-bills.

3/ The U.S. Securities and Exchange Commission (“SEC”) has issued a Wells notice to blockchain gaming platform Immutable, signaling potential enforcement action. The notice allegedly concerns the listing and private sales of the platform's native IMX token in 2021. Immutable has vowed to contest the notice, arguing that the SEC's allegations are unfounded.

In under a year, spot #Bitcoin ETFs have drawn US$18.9B+ in net inflows, now holding US$63.3B, making them the third-largest segment of BTC holders.

Our latest #Binance research dives deeper into how these ETFs are shaping crypto markets.

Check it out ⬇️
https://www.binance.com/en/research/analysis/spot-etfs-in-crypto-markets

Highlights 🧵:
1/ Stripe acquired stablecoin platform Bridge for US$1.1B, furthering its expansion into digital asset infrastructure. This move underscores Stripe's commitment to stablecoins and crypto, aiming to streamline stablecoin transactions for businesses and highlighting the growing importance of them in the financial sector.

2/ VanEck introduced staking rewards for its Solana exchange-traded note in Europe, allowing investors to earn passive income that is auto-reinvested daily. This non-custodial process has a 25% staking fee deducted before adding rewards to the ETN's NAV, ensuring max liquidity and proportional reward distribution. Meanwhile, VanEck is awaiting SEC approval for a Solana ETF in the U.S., which will not include staking rewards.

3/ ApeChain launched mainnet on Arbitrum Orbit, introducing native staking yield to APE holders. Apechain is also integrated with LayerZero for cross-chain capabilities. Yuga Labs, in partnership with Wire Network, aims to enhance creator capabilities on ApeChain with AI-driven tools. Additional features include the Yuga ID for simplified account management.

Highlights 🧵:
1/ Radiant Capital, a multichain lending protocol, lost over US$50M in a security exploit. The attacker gained control of the protocol by obtaining three out of 11 private keys needed to upgrade its smart contracts. This is the second exploit Radiant has faced this year, following a US$4.5M loss in January.

2/ Worldcoin has rebranded to "World," and introduced a new version of its Orb biometric scanning device, which is now more efficient and powerful, and will eventually be available in self-service kiosks. World also revealed new identity verification options, including NFC-enabled passport verification and a service called World ID Deep Face to combat deepfakes. The company has reached 15 million users, with seven million verified.

3/ According to CryptoQuant, Bitcoin exchange reserves have dropped to their lowest levels since October 2021, with over 51,000 BTC withdrawn from major exchanges in the past month. The decline is partly due to the Mt. Gox distribution and Coinbase reserves moving to institutional custody, as well as investors transferring BTC to cold storage.

Stablecoins have proven to be a significant use case in the blockchain industry.

In our latest report, we provide an overview of global stablecoin regulation, focusing on 6 major jurisdictions.

Dive in here ⬇️
https://www.binance.com/en/research/analysis/overview-of-global-stablecoin-regulation

Highlights 🧵:
1/ Uniswap Labs has introduced Unichain, a new L2 developed using the OP Stack, designed to enhance transaction speed, cost-efficiency, and liquidity. Unichain will feature one-second block times, 250ms sub-blocks, and will be part of Optimism’s Superchain.

2/ Solana has led in token creation, accounting for 87% of new tokens since September. Platforms like Pump.fun have made it easier to create tokens at low costs, contributing to Solana's dominance. Despite the launch of a competitor on Tron, Solana remains the top platform for new token launches, though it faces potential risks from declining volumes as the memecoin market slows down.

3/ According to a survey by Alternative Investment Management Association (AIMA) and PwC, 47% of traditional hedge funds now have exposure to crypto, up from 29% last year. In 2024, 58% of active crypto funds traded derivatives, up from 38% in 2023, while spot market trading dropped to 25% from a peak of 69% last year. Among those already invested, 67% plan to maintain their current holdings, while the rest intend to increase their investments by year-end.

A summary of the latest U.S. CPI Inflation release ⬆️

Time to look at October's market insights!

Discover the current market landscape and key insights on:

🔸 Wrapped BTC
🔸 ETH Issuance
🔸 Real-World Assets
🔸 Crypto Hacks

…and more.

Read here ⬇️
https://www.binance.com/en/research/analysis/monthly-market-insights-2024-10

1/ Visa has introduced the Visa Tokenized Asset Platform (“VTAP”), a new product designed to help banks issue and manage fiat-backed tokens on blockchains. Major international bank, BBVA, will be among the first to use VTAP, creating tokens on Ethereum with live pilots expected in 2025.

2/ Bitwise has filed the first Form S-1 for a spot XRP ETF with the U.S. SEC. If approved, the ETF will provide direct exposure to the value of XRP. Additionally, Ripple has received in-principle license approval from the Dubai Financial Service Authority, allowing it to establish a presence in the UAE for cross-border payment services.

3/ Beginning in 2025, banks in North America, Europe, and Asia will use Swift's network to conduct live trials of digital asset and currency transactions. These trials aim to demonstrate Swift's ability to facilitate the transfers of value between over four billion accounts across 200 countries and territories. The focus will be on payments, FX, securities, and trade.