Written by: BitpushNews
After the harsh winter of 2022, the cryptocurrency industry in 2024 has truly undergone a rebirth.
Even without Donald Trump's grand slogan of 'the world's crypto capital,' 2024 is destined to be a significant chapter in the history of cryptocurrency development, as it rapidly integrates into the mainstream financial system.
Patrick Kirby, a policy advisor for the Cryptocurrency Innovation Committee, stated at an industry conference in 2024: 'The approval of spot Bitcoin ETFs and Ethereum ETFs is undoubtedly an important turning point in the development of the industry. Looking back at the journey of cryptocurrencies, we cannot help but marvel at the speed of their development.'
With Bitcoin breaking 100,000, along with a series of key regulatory advancements and election results, cryptocurrencies will undoubtedly play a more important role in the future political and economic landscape. In this article, the Bitpush editorial team will review some significant developments in the cryptocurrency field over the past 12 months.
Mainstream entities are competing to embrace cryptocurrencies.
The pace of cryptocurrencies moving towards the mainstream is becoming increasingly firm, and the most significant evidence is that traditional financial giants are opening their arms to embrace this emerging asset class—the medium being the highly favored investment tool: exchange-traded funds (ETFs).
ETFs, funds that are traded like stocks on exchanges, cleverly build a bridge that allows investors to participate easily without directly holding digital assets, thus enjoying the growth dividends of the cryptocurrency market.
In January 2024, the U.S. Securities and Exchange Commission (SEC) historically approved the listing of 11 spot Bitcoin ETFs, marking the beginning of a new era for cryptocurrency investment in the U.S.
According to Bitcoin.com, as of December 24, the holdings of Bitcoin spot ETFs in the United States have exceeded 1.13 million BTC in less than a year, showcasing its ability to attract investment.
Ethereum ETFs have also performed remarkably, attracting $14.28 billion in inflows, accounting for 2.93% of Ethereum's market capitalization, making it a highlight in the cryptocurrency investment field this year.
The booming development of ETFs clearly demonstrates that mainstream institutions are increasingly accepting cryptocurrencies. As ETF.com senior analyst Sumit Roy predicted, 'It is conceivable that in the future, spot Bitcoin ETFs could even account for 10%, 20%, or even a higher percentage of Bitcoin's market capitalization.'
The phenomenon of Memecoin breaking through and wealth creation effects.
The wealth creation effect of Memecoins and cultural export once again confirms the powerful force of 'entertainment first' in the internet age. In the wave of cryptocurrencies moving towards institutionalization and specialization, Memecoins are a trend that cannot be ignored.
According to Artemis data, Meme coins are the third largest profitable narrative in 2024, with an average annual return rate of 201%, far exceeding the market's average return rate of 128%.
For example, Fartcoin's valuation quickly soared to $836 million since its launch in October; the Patriot token, which emerged due to Trump's re-election, surged 626% in just one week, with a market value surpassing $73 million. Its community even spent a fortune to create a 22-foot tall bronze statue of Trump to celebrate this 'victory'; the magic of Memecoin is evident.
The technological support behind the Memecoin frenzy is Solana, which, with its high performance and low-cost advantages, has attracted 89% of new Memecoin projects to settle here, becoming a true Memecoin fertile ground.
Cryptocurrency influences 'politics'.
The 2024 presidential election will transform the status of cryptocurrencies from a niche movement to a strong player in American politics.
According to data compiled by blockchain analysis platform Breadcrumbs and FOX Business, contributions from the cryptocurrency industry in this election season have set a record of $238 million.
Some campaign advertisements do not mention cryptocurrencies, and some public advocacy groups have criticized this. Public Citizen author Ray Claypool stated, 'This tsunami of money is a blatant attempt by profit-driven enterprises to prioritize private economic interests over the public good.'
The number of cryptocurrency users has soared to a historic high.
According to data from Token Terminal, as of early December, the number of cryptocurrency holders reached 18.7 million. The industry has also attracted a greater variety of investors.
A research report from Coinbase states that the voting behaviors of cryptocurrency holders are not uniform, and they do not always fit the stereotype of 'tech people in hoodies.' The study found that 18% of cryptocurrency holders are stay-at-home parents, 10% are small business owners, and 41% listen to country music.
Legislative progress.
A cryptocurrency legislation that has been brewing for nearly a year passed the U.S. House of Representatives in May, marking a key step for the U.S. in regulating the digital asset space. This legislation, known as the (21st Century Financial Innovation and Technology Act) (FIT21), was passed with rare bipartisan cooperation, which is particularly noteworthy. In an increasingly polarized American political landscape, 71 Democratic representatives and over 200 Republican representatives voted in favor, reflecting the importance of this bill. Patrick Kirby from the Cryptocurrency Innovation Committee stated that the passage of this market structure bill is 'a significant turning point in the development of the industry.'
The FIT21 bill aims to provide clearer regulatory guidance for cryptocurrency companies, clarifying which digital assets should be classified as securities and which should be classified as commodities, thus ending the 'tug-of-war' between the SEC and the CFTC regarding cryptocurrency regulation and clearing obstacles for industry development.
The bill has currently been submitted for Senate review, and some analysts believe that the Senate may propose more forward-looking legislation based on this to better address the challenges posed by the rapidly evolving digital asset market, such as stablecoin regulation.
States in the U.S. are ready to embrace cryptocurrencies.
Bitpush previously reported that Ohio State Representative Derek Merrin proposed a bill to establish Bitcoin reserves in the state treasury, authorizing the state government to invest in Bitcoin. In fact, Ohio is not an isolated case. Pennsylvania and Texas have also passed similar bills, indicating that some state governments in the U.S. are actively exploring the possibility of incorporating cryptocurrencies into their financial strategies.
Texas State Representative Giovanni Capriglione bluntly stated that inflation is 'the biggest enemy of our investment' and believes that establishing strategic Bitcoin reserves would be a 'win-win' for state governments. This viewpoint is also shared by some other legislators. The scarcity of Bitcoin gives it certain anti-inflation attributes, which is an important reason why some legislators support incorporating it into state financial reserves.
Although there are still many challenges ahead, the trend of mainstreaming is irreversible. We have reason to expect that, in the near future, cryptocurrencies will play a more important role in the global economy and politics.
