Gate Research: Monthly Market Review Highlights (December 2024)

This month, Gate Research focused on the key developments in the Web3 industry, including financing, technological innovation, security, and policy, all of which saw significant progress. Total financing reached $3.08 billion, setting a new annual high, with CeFi and social projects driving the investment surge. On the technical front, the launch of the Sophon mainnet and advancements in the LayerZero protocol spurred ecosystem growth. Security incident losses dropped to $4.11 million, though smart contract vulnerabilities remain a major threat. The EU's MiCA regulations offer a chance for regulatory advancement while policy shifts in the US and Hong Kong continue to shape market expectations.

Web3 Funding Report
In December, the Web3 industry secured $3.08 billion across 159 financing rounds, setting a new annual record with a notable month-on-month increase. CeFi and social projects attracted more investment, while interest in DeFi declined. Financing methods became more diverse, with equity, debt, and OTC deals all seeing activity. Animoca Brands emerged as the most active investor, focusing mainly on blockchain infrastructure.

Full Report: Gate Research: Web3 Funding Report for December 2024


Web3 Security Incident Summary
In December, 27 security incidents were reported, resulting in around $4.11 million losses. Smart contract vulnerabilities were responsible for 72% of these incidents, remaining the primary threat. Notable incidents included the FEG cross-chain vulnerability, Clober DEX liquidity attack, and flash loan exploits, underscoring ongoing cross-chain and contract security risks. The report recommends stronger audits, real-time monitoring, and multi-layered defenses to bolster security.

Full Report: Gate Research: Security Incident Summary for December 2024


Web3 Events and Crypto Technology Developments
December saw several major developments in the Web3 space, including the launch of the StakeStone platform, the Sophon mainnet, and LayerZero fee voting, showcasing ongoing technical and community-driven innovations. Key project updates, such as Stacks adding Bitcoin deposit functionality, injected fresh momentum into the industry, further advancing technology integration and ecosystems.

Full Report: Gate Research: Summary of Web3 Events and Crypto Technology Development in December 2024


Web3 Policy and Macro Report
In December, the Web3 industry saw significant policy and market behavior shifts. The EU's MiCA regulations came into effect, marking a key milestone in crypto asset regulation. The US released important economic data, including PMI and CPI, while Hong Kong clarified its stance on crypto legislation. These developments help establish clearer industry rules, bolstering market stability and credibility.

Full Report: Gate Research: Web3 Policy and Macro Report - December 2024

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Gate Team
January 9th, 2025