After experiencing the harsh winter of 2022, the cryptocurrency industry has been reborn in 2024. Even without Donald Trump's grand slogan of 'the global crypto capital', 2024 is destined to be a significant chapter in the history of cryptocurrency development, as it integrates into the mainstream financial system at an unprecedented pace. Patrick Kirby, a policy advisor for the Crypto Innovation Committee, stated at an industry conference in 2024: 'The approval of spot Bitcoin ETFs and Ethereum ETFs is undoubtedly an important turning point for the industry's development. Looking back at the journey of cryptocurrencies, we must 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 stage. The BiT推 editorial team will take you through some significant developments in the crypto field over the past 12 months. Mainstream embraces cryptocurrency. The pace at which cryptocurrency is moving towards mainstream acceptance has become increasingly firm, and the most notable evidence is the traditional financial giants opening their arms to embrace this emerging asset class—its medium being the highly favored investment tool: Exchange-Traded Funds (ETFs). ETFs, which trade on exchanges like stocks, cleverly build a bridge that allows investors to easily participate without directly holding digital assets, 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 United States. According to statistics from Bitcoin.com, as of December 24, the holdings of U.S. spot Bitcoin ETFs exceeded 1.13 million BTC in less than a year, demonstrating their ability to attract capital. Ethereum ETFs have also performed impressively, attracting $14.28 billion in inflows, accounting for 2.93% of Ethereum's market cap, becoming a highlight in the cryptocurrency investment field this year. The vigorous development of ETFs clearly confirms 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 occupy 10%, 20%, or even a higher proportion of Bitcoin's market cap.' Memecoins break through and create wealth effects. The wealth effect and cultural output of Memecoins once again confirm the powerful force of 'entertainment above all' in the internet era. Amid the trend of cryptocurrencies becoming institutionalized and professionalized, Memecoins are a force that cannot be ignored. According to data from Artemis, meme coins were the third-largest profitable narrative in 2024, with an average annual return rate as high as 201%, far exceeding the market's average return rate of 128%. For example, Fartcoin rapidly rose in valuation to $836 million after its launch in October; the Patriot token, which emerged due to Trump's re-election, skyrocketed by 626% in just one week, with a market cap exceeding $73 million, and its community even spent heavily to create a 22-foot tall bronze statue of Trump to celebrate this 'victory', showcasing the magic of Memecoins. The technological support behind the Memecoin craze is Solana, which, with its high performance and low cost advantages, attracted 89% of new Memecoin projects to take root here, becoming a true Memecoin fertile ground. Cryptocurrency influences 'politics'. The 2024 presidential election has transformed the status of cryptocurrencies from a niche movement to a strong participant in American politics. According to data compiled by blockchain analysis platform Breadcrumbs and FOX Business, the cryptocurrency industry set a record of $238 million in donations during this election season. Some campaign advertisements did not mention cryptocurrencies, and some advocacy groups criticized this, with Public Citizen author Ray Claypool stating: '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 surged 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 more diverse range of investors. A research report from Coinbase noted that the voting behavior of cryptocurrency holders is not uniform and does not always conform to the stereotype of 'hoodie-wearing tech people'. The study found that 18% of cryptocurrency holders are stay-at-home moms, 10% are small business owners, and 41% listen to country music. Legislative progress. A cryptocurrency legislation that has been brewing for nearly a year was passed in the U.S. House of Representatives in May, marking a key step for the U.S. in regulating the digital asset space. This bill, known as the 'Financial Innovation and Technology Act of the 21st Century' (FIT21), was passed with rare bipartisan cooperation, which is particularly noteworthy. In an increasingly polarized U.S. political landscape, 71 Democratic representatives joined over 200 Republican representatives in voting in favor, fully demonstrating the bill's significance. Patrick Kirby of the Crypto Innovation Committee stated that the passage of this market structure bill is 'an important turning point in the industry's development.' The FIT21 bill aims to provide clearer regulatory guidance for cryptocurrency companies, clarifying which digital assets should be classified as securities and which as commodities, thus ending the 'tug-of-war' between the SEC and the Commodity Futures Trading Commission (CFTC) over cryptocurrency regulation and clearing obstacles for industry development. The bill has now been submitted to the Senate for review, and some analysts believe the Senate may launch more forward-looking legislation based on this to better address the challenges posed by the rapidly evolving digital asset market, such as regulation of stablecoins. U.S. states prepare to embrace cryptocurrency. BiT推 previously reported that Ohio State Representative Derek Merrin proposed a bill to establish a Bitcoin reserve in the state treasury, authorizing the state government to invest in Bitcoin. In fact, Ohio is not alone in this. Pennsylvania and Texas have also passed similar bills, indicating that some state governments in the U.S. are actively exploring the possibility of incorporating cryptocurrency into their financial strategies. Texas State Representative Giovanni Capriglione frankly stated that inflation is 'the biggest enemy of our investments', and he believes that establishing a strategic Bitcoin reserve would be a 'win-win' for the state government. This view has also been endorsed by some other legislators. The scarcity of Bitcoin gives it certain anti-inflation properties, which is also an important reason why some legislators support including it in state financial reserves. Although there are still many challenges on the path forward, the trend towards mainstream acceptance 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.

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