Binance Research, the research arm of the major cryptocurrency exchange Binance, has released its monthly “Market Insights” report for October 2023. The report highlights that September was a relatively calm month for the crypto market, shaped by events such as Telegram’s TON wallet integration and the increasing adoption of Account Abstraction (AA). Additionally, significant changes were observed in the DeFi sector, with the value of the stablecoin market continuing to decline and ApolloX making a noteworthy entry. The report also notes the prominent role of Ethereum’s Layer 2 solutions in scaling blockchain technology throughout the month.
According to the latest issue of Binance Research’s “Market Insights” report, September was a relatively stable month with low volatility in the market value of the crypto market. Despite a few notable events causing short-term disruptions, such as the asset liquidation announcement from the cryptocurrency exchange FTX and the Federal Open Market Committee (FOMC) meeting, the market quickly absorbed shocks and regained balance. The most significant event of the month was the integration of the TON wallet by Telegram, which triggered a significant increase in the value of TON coin.
The report highlights that one of the most significant developments in September was the increasing adoption of Account Abstraction. Over 2.3 million successful ERC-4377 smart contract transactions took place in more than 870,000 unique AA accounts. Ethereum’s Layer 2 solutions played a crucial role in this growth, and most transactions occurred on networks such as Polygon, Optimism, and Arbitrum.
The report emphasizes that September marked the 18th consecutive month of decline in the market value of the stablecoin market. With this decline, the market value dropped to $123.8 billion, reaching a level unseen since September 2021.
Surprisingly, despite challenging conditions, USDT and DAI managed to reverse this trend with a slight increase in market value.
According to Binance Research’s report, the largest decentralized cryptocurrency exchange, Uniswap, maintained its leadership in terms of Ethereum gas consumption throughout September. The report indicates that the insatiable appetite of the decentralized exchange for gas continues to make it a vital player in the DeFi ecosystem.
The report also confirms the significant role of L2 solutions in advancing blockchain scalability through their high activity. The zkSync Era mainnet surpassed Ethereum by recording over 30.58 million transactions in 30 days. Arbitrum also experienced a significant increase in interest, partly due to the relaunch of its highly anticipated campaign, Arbitrum Odyssey.
Furthermore, Binance Research’s report reveals notable changes in the DeFi Perpetuals market in September, with ApolloX emerging as a significant player and recording an impressive 450% growth in trading volume and market share compared to the previous month. This development indicates a highly dynamic landscape challenging the dominance of established protocols such as dYdX and GMX.