🖥 North America: Chainalysis Analysis on Prospects

According to the latest Chainalysis report, North America has once again proven its leadership in the crypto industry.

From July 2023 to June 2024, $1.3 trillion flowed into the region’s blockchains, accounting for 22.5% of global activity.

◽️ Institutional Momentum in Action

70% of transactions exceeding $1 million confirm that large financial players dominate the North American crypto market.

Institutional money has become a significant driver of market growth — it’s no longer just "Bitcoin for enthusiasts," but a fully integrated part of the financial landscape.

The primary focus here, of course, is on the U.S., where 2024 has been a landmark year.

After the bear market triggered by the collapse of FTX and the bankruptcy of Silicon Valley Bank, the crypto market showed remarkable recovery.

In March 2024, Bitcoin reached $73,000, confirming increased trust and stability in the crypto infrastructure.

◽️ The Merger of TradFi and Crypto

One of the key events was the massive adoption of Bitcoin ETPs (exchange-traded products), launched by giants like BlackRock.

These instruments allowed institutional and retail investors to invest in Bitcoin safely and easily, without dealing with wallets and private keys.

This was a game-changer: the capital inflow into Bitcoin ETFs even surpassed that of gold funds.

◽️ Stablecoins: A Slowdown

In recent years, stablecoins like USDC and Tether (USDT) have become essential tools for global payments.

They offer stability by being pegged to the dollar, making them ideal for countries with volatile economies.

While stablecoin activity in the U.S. has somewhat declined, we see an increase in their use in emerging markets like Latin America.

However, the problem remains: regulatory uncertainty in the U.S. is stalling further stablecoin growth.

While regions like Europe (through MiCA), the UAE, and Singapore are providing clearer legal frameworks for digital assets, the U.S. risks falling behind.

Circle, the issuer of USDC, warns that the lack of clear rules in America could weaken the country’s leadership in this area.

◽️ What’s Next?

North America remains the largest player in the crypto market, but it needs to address the regulation of stablecoins and digital assets to maintain its position against other regions.

Institutional players like BlackRock and Goldman Sachs will continue to expand the market, and Bitcoin ETFs are paving the way for mass crypto adoption.

Crypto has become part of the global financial system, and the U.S. now plays a key role in its development.

However, whether they continue to lead will depend on their ability to adapt quickly to new challenges.

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📈 $BTC on the Rise: Opinions from Forbes, the European Central Bank, and Ecoinmetrics

Open interest in Bitcoin futures has hit a record $40.37 billion, while Bitcoin's price has surged to $69K.

Leading the way are CME ($12.43 billion) and Binance ($8.25 billion), together capturing more than half of the total interest.

Amid this rapid growth, various perspectives on Bitcoin’s future are emerging.

1️⃣ Forbes: Bitcoin is Changing the Game

Forbes claims that Bitcoin is ready to revolutionize global finance and public markets.

With a market capitalization of $1.3 trillion and millions of users, Bitcoin has proven its strength.

BlackRock, the largest asset manager, has shifted from skepticism to support, and their Bitcoin ETF has already attracted over $23 billion.

In just 10 months, Bitcoin ETFs have drawn in nearly $20 billion, while gold funds attracted only $1.4 billion.

The clear signal: institutions are betting on Bitcoin.

⚪️ MicroStrategy and the ‘Endless Financial Glitch’

MicroStrategy, led by Michael Saylor, is showcasing a new approach to Bitcoin — using it not just as an investment, but as a strategic asset.

Their strategy, based on issuing convertible bonds to buy Bitcoin, allows them to benefit from both global liquidity and Bitcoin’s scarcity.

2️⃣ European Central Bank: Caution Above All

However, the European Central Bank sees things differently.

They warn that Bitcoin’s growth could lead to wealth concentration among early holders, exacerbating inequality.

Despite Bitcoin’s promise to become a global payment system, it has yet to fulfill that role.

They caution that the rising price could pose a societal risk.

3️⃣ Ecoinmetrics: No Limits for $BTC Growth... or Stimulation

The U.S. labor market is currently stable, providing the economy some relief, despite early-year recession fears.

A strong labor market is good news for the economy, but for Bitcoin, it may mean a slower reduction in Federal Reserve rates.

This adds short-term uncertainty, but if a recession is avoided, Bitcoin will be in a strong position.

✅ Conclusion

On one hand, Bitcoin is gaining more supporters among giants like BlackRock and MicroStrategy.

On the other hand, traditional institutions like the European Central Bank are warning of risks.

Ecoinmetrics, meanwhile, points to labor market stability and its impact on Bitcoin’s further growth.

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🟠 Is Binance Losing Ground? 0xScope’s Annual CEX Report

Binance is losing its footing, while its competitors are gaining momentum.

0xScope’s 2024 report shows that the leading exchange is facing significant challenges.

Other exchanges like Bybit, OKX, and Bitget are actively capturing market share.

🔸 Spot Trading: Binance Loses 13%, Bybit Rises to 2nd Place

Over the past 12 months, the 22 largest exchanges processed $14.6 trillion in spot trading volume.

Binance remains the leader with $5.78 trillion (39.54% market share), but its share has decreased by 13% compared to last year.

In 2023, Binance's share was 52.5%, indicating a continued decline.

Bybit has been the main beneficiary of this drop, rising from 7th place to 2nd, increasing its share from 3.2% to 8.51%.

OKX, in 3rd place, also slightly improved its position, increasing from 5.4% to 6.38%.

🔸 Here’s how the top five look:

1. Binance — 39.54% (-13%)
2. Bybit — 8.51% (+5.31%)
3. OKX — 6.38% (+0.98%)
4. Upbit — 5.77% (-1.03%)
5. Coinbase — 5.68% (-0.12%)

Binance's market share continues to shrink for the second year in a row.

In 2022, it held 62% of the market, but by November 2023, its share dropped to 30%.

🔸 Derivatives: OKX, Bybit, and Bitget Grow as Binance Declines

Similar trends are seen in the derivatives market.

Binance lost 8.4% of its share, dropping from 50.9% to 42.5%.

Meanwhile, exchanges like OKX, Bybit, and Bitget are strengthening their positions:

◽️ OKX grew from 15.5% to 19.83%, becoming the second-largest player.

◽️ Bybit increased its share from 11.3% to 13.98%.

◽️ Bitget secured 4th place, rising from 8.2% to 12.73%.

These three exchanges also took market share from MEXC Global, which fell from 7.3% to 4.27%.

🔸 Total Volume: Binance Losing Position, Competitors Rising

In 2024, Binance still holds first place with $22.5 trillion out of the total $54 trillion volume, but its share dropped from 51.2% to 41.68%.

The most successful competitors were:

◽️ OKX — from 13.4% to 16.19%.
◽️ Bybit — from 9.6% to 12.5%.
◽️ Bitget — from 7.0% to 10.28%.

The trends show that Binance is gradually losing its dominance, while its competitors are steadily gaining ground.

🟠 What’s Next?

The decline in Binance's share in both spot and derivatives trading indicates that its monopoly is weakening.

Meanwhile, Bybit, OKX, and Bitget are rapidly expanding, and the battle for dominance is only intensifying.

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🌐 UAE: A Leading Country for Cryptocurrency Development

The United Arab Emirates (UAE) has made a significant step towards becoming a global hub for cryptocurrency.

Recent changes in tax laws make the Emirates even more attractive to crypto companies and investors.

Let’s look at how the country is advancing in the crypto market.

📊 VAT Exemption on Cryptocurrency Transactions

Starting November 15, 2024, all cryptocurrency transactions in the UAE will be exempt from Value Added Tax (VAT).

This is made possible by Cabinet Resolution No. 100 of 2024.

The change aims to encourage investment and simplify regulations for working with virtual assets.

Now, individuals and businesses dealing with cryptocurrencies will save 5% on every transaction.

Additionally, there is a consideration for VAT refunds on crypto transactions dating back to 2018.

This could make the UAE an even more advantageous jurisdiction for virtual asset operations.

📊 Cryptocurrency Regulations and Licenses in the UAE

2024 has brought important new developments in the UAE's cryptocurrency regulatory landscape.

In May, the Central Bank approved a new licensing framework for stablecoins.

In April, Binance was granted a Virtual Asset Service Provider (VASP) license in Dubai.

This highlights the UAE’s proactive efforts to create a favorable environment for the growth and development of the crypto market.

📊 Tax Benefits and Advantages for Investors

One of the main advantages for UAE tax residents is the absence of tax on cryptocurrency income.

This benefits both active traders and those passively holding digital assets.

Moreover, investors who establish companies in Dubai’s free zone can access tax incentives and obtain residency permits.

📊 Headquarters and Offices

Many major crypto companies have already moved their headquarters to Dubai or opened offices there.

These include Binance, OKX, Crypto.com, Q9 Capital, and TON.

This reflects a broader trend, with crypto firms and hedge funds choosing Dubai for its business-friendly environment.

📊 Growth of the Web3 Ecosystem

Currently, the UAE is home to approximately 1,500 Web3 companies employing nearly 7,000 professionals.

The ecosystem of cryptocurrency and decentralized finance (DeFi) in the region is expanding rapidly.

The total value of DeFi services has grown by 74% compared to last year.

📊 Major Crypto Events in the UAE

Dubai has become a hub for major international cryptocurrency events, such as the Wiki Finance Expo Dubai 2024, Global Blockchain Show, and Crypto Expo Dubai.

On October 22-23, Dubai hosted Blockchain Life 2024, drawing over 10,000 participants from 120 countries.

Speakers included industry leaders like Paolo Ardoino (Tether), Yat Siu (Animoca Brands), Pascal Gauthier (Ledger), who discussed the market outlook for 2025.

This further underscores the UAE’s intention to maintain its leadership in the crypto world.

📊 UAE: A Global Hub for Crypto Innovation?

With VAT exemptions on cryptocurrency transactions and supportive regulatory policies, the UAE is becoming an attractive hub for blockchain companies.

However, as highlighted by Henley & Partners’ study, the UAE does not yet hold the absolute top spot.

Among the 28 countries surveyed, Singapore scored the highest with 45.7 out of 60, thanks to strong government support and broad access to digital technologies.

Hong Kong, scoring 42.1, stands out with its developed infrastructure and favorable tax policies.

Currently, the UAE ranks third with 41.8 points but continues to strengthen its position.

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