November 2023 Web3 Industry Monthly Development Report Blockchain

In November, driven by macroeconomic improvements and events, the crypto market gradually picked up. Last month, the market sentiment brought about by spot ETFs continued to increase, there was continuous good news from the US regulatory authorities, and retail investors' entry signals were obvious. The positions of small-scale investors with positions below 10 BTC continued to rise, pushing BTC to remain strong. The benefits gradually spread to the Bitcoin ecosystem. The inscription market was reborn this month. The price of the leading project Ordi soared 593.45% to US$49.33 within 30 days. Bitcoin once again set off the craze for animal inscriptions, with Sats and Rats becoming typical representatives. Outside of the market, the most popular event this month was the sky-high US$4.3 billion settlement agreement reached between Binance and U.S. regulators, which directly led to founder Changpeng Zhao’s exit and a major change within Binance. Although Binance had already taken control of this move, it still caused some panic. After the announcement, Binance’s capital outflow reached US$1 billion. However, Binance’s fundamentals have not changed, so the funds quickly returned. The market also generally believed that This incident will promote the development of industry compliance. Back in China, the industry has maintained steady development, convergence policies have been intensively introduced, and there are good news about banks supporting digital renminbi. However, the rotation of domain names for digital collections in the application direction has once again failed.

Policy direction, as the end of the year approaches, blockchain policies have increased instead of falling. This month, 18 new blockchain-related policies have been released, covering 10 provinces and cities including Shanghai, Guangdong, Yunnan, and Ningbo. Among them, Shanghai has the most intensive policy releases, with relevant releases There are 4 policies and one new special auxiliary policy. As of the end of November this year, my country's blockchain-related policies have reached 86, and the number has basically reached the level of last year. However, the number of special projects has decreased significantly, and the integration of data elements and the metaverse have become the main growth items.

In terms of investment and financing, the improvement in the secondary market has rotated to the primary market this month. The investment and financing market recovered significantly in November, with 93 incidents, a month-on-month increase of 22.37%, and the investment and financing amount reached 88.73 billion, which was 2.36 times the total amount of finance in October, an increase of 51.18% year-on-year, setting a record this year. The average financing amount reached US$95 million, soaring 92.94% from the previous month. Blockchain industry applications continue to be the sector with the most concentrated investment and financing events this month, with 68 cases occurring, an increase of 4 from the previous month, accounting for 73.12% of the total number of events. However, in terms of amount, the digital currency field is the most concentrated area this month. The main driving force of the investment and financing market was only 12 events that raised an amount of 4.579 billion yuan. This amount was more than five times that of the previous month and accounted for 51.6% of all investment and financing amounts this month.On the whole, the market has gradually recovered from the deep bottoming cycle, the early bull market has begun to appear, and the investment and financing market has gradually returned to the level before the FTX chain thunder incident last year. While the leading currencies led the rise, ALT is relatively Stability is precisely one of the phenomena that reflects the laws of the market.

Application direction, judging from the number of blockchain applications implemented, from 2020 to the present, although blockchain application registrations are still expanding year by year, with 3,632 cases so far, due to the lag in registration, many It is an existing product before. Judging from the launch of new applications, blockchain applications are still shrinking. As of the end of November 2022, according to incomplete statistics from public data, the number of blockchain industry applications in my country is 74, a year-on-year decrease of 41.26% after adjustment. On the one hand, the increase in filing projects is closely related to the previous digital collection bubble. Most digital collection projects were filed in batches after a time lag, thus becoming the main driver of the number of filings. Judging from the data, in the seventh batch of filings in 2022, the proportion of new filings for data storage business was only 3.8%, but since the ninth batch of filings in 2022, its proportion has rapidly increased to more than 40%. As of the end of November 2023, the data storage business has maintained more than 40% of new filings for five consecutive batches, becoming the main area of filing projects. On the other hand, from the perspective of industrial applications, since the previous basic deployment has been effective, the demand for blockchain, as the underlying infrastructure of applications, is on a downward trend, and the expansion of application directions will still take time.

In the direction of digital renminbi, the list of banks supported by the digital renminbi APP has been expanded again, adding two new foreign banks, Hang Seng China and Standard Chartered China. In addition to HSBC China and Fubon Huayi, which have been connected before, the current digital renminbi APP foreign investment The number of banks connected has reached 4. In addition to the above four banks, in order to enrich local business and enhance user stickiness, overseas foreign banks have joined the digital renminbi ecosystem this year. BNP Paribas, Kasikornbank (China), and DBS Bank have all launched digital renminbi wholesale Class business scenarios. Compared with the previous focus on corporate transactions, the access of foreign banks this time allows them to extend their transaction reach from the interbank or corporate side to the consumer side, and also provides overseas users with the opportunity to adopt RMB internationalization Created an opportunity.

The following is an excerpt from the monthly report: