Written by: Alvis, Mars Finance
In 2024, the crypto market seems to have returned to the violent bull market of 2017, and the craze has swept the entire digital asset world. The market led by Bitcoin is no longer a lone battle. This time, the old Layer 1 projects have rushed to new highs, and every inch of the market is burning. From BNB to XRP, to Tron and Ethereum, they were once regarded as "altcoins", but they are breaking through historical highs at an astonishing speed and ushering in their own golden age.
All this seems to be the explosion of pent-up demand in the past few years. Market sentiment has quickly turned optimistic, and capital has poured back into these projects with strong technical foundations. Just like the market frenzy in 2017, this time, the surge in the old Layer 1 is not just a doubling of prices, but also a profound change in the entire crypto ecosystem and market structure.
The current crazy rise in the crypto market is no longer a one-man show of Bitcoin, but a number of projects with strong ecological support have stepped onto the stage together and ushered in their own frenzy moment.
Bitcoin sets new record, starts consolidation before surge
The performance of Bitcoin is really remarkable. In the past few days, Bitcoin CME futures and Binance 0328 delivery contracts have broken through the psychological barrier of $100,000, leading the entire market into a new round of madness. However, the surge in Bitcoin did not happen overnight. The high-level fluctuations in prices are precisely what it is preparing for the next take-off. This time, the shock consolidation has not only failed to weaken the market's enthusiasm for Bitcoin, but has made full preparations for its future breakthroughs.
Bitcoin: What’s Next? $100,000 Is Just the Beginning
BTC/USDT, 4-hour chart
After Bitcoin broke through $99,600, the market experienced a short correction, but this wave of adjustments did not cause panic. On the contrary, many investors saw it as an opportunity to buy on dips and actively poured into the market. Judging from the price fluctuations in early December, Bitcoin fell slightly in the short term, but most market participants remained optimistic and sought new opportunities to enter the market.
On December 3, Bitcoin once fell below $93,600. However, judging from the trading data, different types of market participants are still interested in Bitcoin and have used the pullback period to buy. At this time, the Bitcoin market is forming a relatively stable range with clear support and resistance levels, which helps it accumulate energy at this stage and prepare for the next wave of rise.
During the US trading hours of the same day, after South Korean President Yoon Seok-yeol announced martial law and briefly withdrew it, the lack of liquidity in the South Korean market caused Bitcoin to fall below $65,000 on the Upbit exchange, while on the Binance exchange, the price of Bitcoin remained around $95,000. Although this market volatility caused short-term shocks, it did not change investors' confidence, but made them more convinced that this was a "healthy adjustment period."
Looking back at the bull market in the crypto market in 2017 and 2021, each adjustment period after a sharp rise was a prelude to a violent rise.
Today, the price of Bitcoin is completing this correction and gradually preparing for the next round of breakthrough of $100,000. This time, the market's target is no longer the psychological price of $50,000 or $60,000, but directly aims at a higher target - breaking through the historical high of $200,000. The realization of this goal does not seem to be out of reach.
Catalysts for violent rise: institutional funds and favorable policies
The recent violent rise in Bitcoin is not accidental, but is driven by multiple factors, among which the continued inflow of institutional funds is undoubtedly one of the key catalysts.
In particular, in early December, MicroStrategy announced that it would purchase 15,400 bitcoins at a price of $95,976 per BTC, with a total amount of $1.5 billion. This move not only provided strong support for the price of Bitcoin, but also once again demonstrated the firm confidence of institutional investors in Bitcoin. On the same day, the listed company Marathon announced that it plans to raise funds through a private placement of $800 million convertible notes, which will be used specifically to purchase more Bitcoin. This series of actions shows that institutional funds are constantly flowing into the Bitcoin market, which has far-reaching significance for the rise in Bitcoin prices.
In addition, another catalyst that could be a catalyst for the rise in Bitcoin prices is the upcoming voting decision by Microsoft shareholders on December 10. At that time, Microsoft shareholders will decide whether to add Bitcoin to the company's balance sheet. If the vote is passed, it will mark an important step forward in Bitcoin's asset allocation as a mainstream enterprise, further consolidating its status as "digital gold."
At the same time, there are rumors in the market that the United States may establish a strategic reserve of Bitcoin, and some Middle Eastern countries are also planning to establish similar reserves. Once this news is confirmed, it will undoubtedly inject more support and momentum into the long-term trend of Bitcoin.
In addition to institutional funds and favorable policies, the continued demand for spot Bitcoin ETFs is also one of the important factors driving the rise in Bitcoin prices. According to SoSoValue data, the inflow of funds to spot Bitcoin ETFs reached US$3.38 billion from November 21 to November 25, and the inflow of funds in early December remained strong, with inflows exceeding US$100 million for three consecutive days. The inflow of funds to spot ETFs shows that the market's confidence in Bitcoin remains strong, and this trend is expected to continue to boost Bitcoin prices in the coming months.
Ethereum: The second largest engine of the crypto market
Of all the altcoins, Ethereum is undoubtedly one of the assets with the most potential. In 2024, Ethereum's performance was amazing. Not only did it achieve significant breakthroughs at the technical level, but market sentiment and capital inflows also showed unprecedented growth momentum.
As the second largest cryptocurrency in the world by market value, Ethereum is right behind Bitcoin, but its wide application in multiple fields such as decentralized finance (DeFi), smart contracts, NFTs, etc., makes it a core asset that cannot be ignored in the crypto market.
Since the beginning of 2021, the price of ETH has generally shown a bullish trend. Although it has experienced several adjustments and consolidations, Ethereum's upward momentum has never changed. Currently, ETH is breaking out of its price triangle pattern and is aiming for higher prices. With the continued growth of on-chain activities, the price of ETH is expected to break through $4,000 and move towards the target of $10,000.
Ethereum: Influx of institutional funds helps ETH enter a new stage
This year, Ethereum (ETH) has hit a new high in capital inflows, reaching a total of $2.2 billion so far, breaking the 2021 historical record. Especially recently, ETH inflows have reached $634 million, significantly boosting market sentiment and reflecting increased investor confidence.
The main driving force behind this surge came from the strong performance of Ethereum ETFs. As an investment tool, ETFs have become a popular choice for investors because they provide investors with the opportunity to participate in Ethereum investment without directly holding digital currencies. As Ethereum ETFs continue to attract a large amount of capital inflows, institutional investors are becoming more interested, further accelerating the market's attention to ETH.
Although market volatility still exists, the overall trend of Ethereum remains bullish, especially the participation of institutions has laid a more solid foundation for the future growth of ETH. This is consistent with the overall growth trend of funds in the crypto ETP market, and Ethereum and Bitcoin have become the leaders of capital inflows in the cryptocurrency field.
It is particularly noteworthy that the net inflow of ETH spot ETFs has also increased significantly, reaching US$24.23 million in the recent period alone, and has achieved net inflows for six consecutive days. BlackRock's ETHA ETF performed particularly well, with a single-day net inflow of US$55.92 million, while Fidelity's FETH ETF also performed strongly, with a single-day net inflow of nearly US$20 million. Overall, the total net assets of ETH spot ETFs have climbed to US$11.13 billion, further demonstrating the market's recognition of the importance of Ethereum as a crypto asset and its continued growing interest.
Ethereum’s ecosystem is booming: TVL hits a record, Layer-2 reaches a new high
According to Lookonchain, Ethereum attracted a whopping $4.81 billion in capital inflows over the past week, a growth that directly drove its total value locked (TVL) to rise significantly. As a result, Ethereum's Layer-2 network has reached a new height, with total TVL reaching a record high of $51.5 billion, a year-on-year surge of 205%, demonstrating strong market vitality.
At the same time, the performance of Ethereum's ecosystem cannot be ignored. The TVL of the Base network increased by US$302 million during the same period, further reflecting that the liquidity and scalability of the Ethereum network have been significantly improved. These capital inflows not only brought DeFi's TVL back to its high point in November 2021, but also prompted the Ethereum ecosystem to achieve a higher degree of diversification and scalability with the increase in liquidity staking options, Bitcoin DeFi integration, and the collaborative contributions of Solana and other Layer-2 networks.
All this shows that Ethereum's technological and ecological advantages are attracting more capital and users, driving it to maintain its leading position in the DeFi field while injecting new impetus into the entire crypto market.
BNB: From exchange token to ecosystem leader
CZ has kept a low profile since he was released from prison. With recent rumors that Trump may pardon CZ and allow him to return to Binance, BNB experienced a violent rise after 8 pm yesterday.
In the past 24 hours, BNB has risen by more than 18%, with a 24-hour trading volume of 5.2 billion US dollars and a current price of 760 US dollars. It has broken through the historical high in 2021 and set a new record high.
Since 2024, the price of BNB has shown amazing resilience and explosiveness. Although the market once had doubts about the prospects of Binance ecology and platform coins, BNB has now overcome all doubts and become a force that cannot be ignored in the crypto market.
The surge in BNB is not only due to the growth and technological innovation of Binance Exchange, but more importantly, its in-depth layout in DeFi, NFT and other fields. With the expansion of the Binance Smart Chain (BSC) ecosystem, BNB has gradually transformed from a simple exchange platform currency to a core asset of a powerful blockchain ecosystem. Whether it is DeFi applications, cross-chain bridging, or decentralized applications, BNB is constantly expanding its application scenarios in the market.
As BNB continues to rise, it has gradually surpassed the traditional "exchange coin" positioning and become a core pillar of the entire crypto ecosystem. The market is generally optimistic that BNB will continue to move towards higher goals in the next few years, and may even become the second largest crypto asset, on par with Bitcoin and Ethereum.
XRP: Regulatory clouds dissipate, market confidence recovers
The rise of XRP is undoubtedly the biggest highlight of the recent crypto market. In the past two months, the price of XRP has risen dramatically, from a market value of 30 billion US dollars to nearly 150 billion US dollars in just over a month, and the highest price has risen to 2.9 US dollars, setting a new high in seven years.
The core driving force behind this wave of growth is undoubtedly the significant progress in the lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC). As the market's optimistic expectations for the Ripple case become stronger and stronger, XRP has gradually gotten rid of the long-term regulatory haze and ushered in new market opportunities.
This regulatory uncertainty has gradually dissipated, giving investors more confidence, especially with the gradual launch of financial products such as spot ETFs, the market demand for XRP has shown explosive growth.
Behind this increase is not only the recognition of XRP as a payment tool, but also the market's full expectation for its future potential after it may break through the regulatory bottleneck.
TRX hits a new record high after seven years
So far, the token price of Tron (TRX) has soared from $0.21 to $0.43, setting a new all-time high of $0.4, further than the peak in June 2018. In just one month, the price of TRX has risen by 157%. In the past two years, TRX has risen nearly 9 times from the bottom, showing the market's strong recognition of its potential.
The gain was particularly notable because as Bitcoin (BTC) fell to $93,000, Tron performed well, becoming the only coin among the top cryptocurrencies by market cap to achieve an intraday gain of 104%.
The explosion of Tron is not accidental. The deep technical advantages and market demand behind it have driven the rapid rise of this token.
First, due to its key role in stablecoin payments, Tron has become one of the most useful blockchains in the crypto industry. According to TronScan data, the Tron network has processed more than $196 billion in Tether (USDT) token transactions, and its average daily transaction volume is even higher than Visa. This data reflects Tron's huge advantages in the payment and settlement field, especially in the application of stablecoin transactions and cross-border payments, Tron has demonstrated its strong market position.
In addition, Tron is also a highly deflationary token, and its supply continues to decline. According to data, the total number of Tron tokens in circulation in 2022 exceeded 101 billion, and this number has dropped to 86 billion. With the continuous growth of the Tron ecosystem and the popularity of decentralized applications, Tron's deflationary effect will continue to increase, further boosting the value of its tokens.
Tron not only relies on technological progress, but also wins market recognition with its strong revenue performance. This year, Tron's revenue exceeded 1.75 billion US dollars, making it the blockchain project second only to Ethereum and Tether. This figure highlights Tron's economic strength in the blockchain industry and proves its great potential as a decentralized finance (DeFi) platform.
It is worth mentioning that Tron also has a fast-growing young meme coin ecosystem - sunpump. As Solana has shown, these meme coins can not only enhance the value of the blockchain, but can even drive the expansion of the entire ecosystem. By supporting meme coin projects, Tron is further enriching the application scenarios of its platform, increasing its market appeal, and enhancing the liquidity of its tokens.
Conclusion: The “summer” of the bull market has just begun
The current crypto market is experiencing an unprecedented bull market. This time, the performance of altcoins is more dazzling than ever. From BNB to XRP, Ethereum, and many other projects, the entire market is undergoing a profound change. Under the leadership of Bitcoin, altcoins have taken over and started a surge of their own.
This is not only a reconfiguration of capital, but also a reshaping of the crypto market. In the next few years, we will witness the rise of more altcoins, whose technological innovation, market application and institutional support will bring unprecedented growth to the crypto market. For investors, this is a golden age full of opportunities. Seizing this violent bull market may become a turning point for their wealth.
