Preface
2024 is seen as a key year for the development of the crypto market. From large-scale inflows of institutional funds to significant growth in on-chain activities, this year showcases the strong vitality and development potential of the crypto industry. Here, we review the performance of the crypto market in 2024 from four core dimensions and discuss possible trends and opportunities for the future.
I. Healthy Growth of the Market
In 2024, the total market value of the crypto market surpassed the historical high of 2021, rebounding to $3.7 trillion. This growth is reflected not only in increased liquidity but also in the dual growth of user numbers and trading volumes, showcasing a healthy development trend in the market.
User Growth: An increasing number of individuals and institutions are entering the crypto space, driving the market's popularization.
Transaction Activity: On-chain transaction volume has significantly increased, indicating that users' usage rates and reliance on crypto assets have further risen.
Technical Support: Continuous optimization of underlying technologies and improvement of infrastructure provide solid support for market growth.
This stage of growth is not just about rising prices, but also represents a healthy ecological expansion, indicating the maturation trend of the crypto market.
II. Influx of ETFs and Institutional Funds
The crypto market in 2024 welcomed two major milestones: the launch of Bitcoin ETF (BTC ETF) in January and Ethereum ETF (ETH ETF) in July. The introduction of these financial instruments not only lowered the entry barrier for traditional investors into the crypto market but also highlighted institutional investors' strong interest in crypto assets.
Growth of On-chain Holdings in Bitcoin ETFs: By the end of the year, the on-chain total holdings of Bitcoin ETFs reached 1.1 million BTC, doubling compared to the beginning of the year.
Expansion of Institutional Investment: Several large companies, including MicroStrategy, have significantly increased their holdings of Bitcoin. For example, MicroStrategy's Bitcoin holdings have reached 439,000 BTC.
Market Signals: The successful launch of ETFs has not only brought capital inflows but also provided strong endorsement for the legitimacy and mainstream acceptance of crypto assets.
The influx of institutional funds injects new vitality into the crypto market, while also laying the foundation for the introduction of more innovative financial products in the future.
III. The Rise of Stablecoins and Regional Opportunities
Stablecoins continue to play an irreplaceable role in 2024, with a total supply reaching $187.5 billion, setting a new historical high. The popularization of stablecoins not only facilitates asset trading but also becomes an important indicator of new capital inflows.
1. The Core Role of Stablecoins
Liquidity Bridge: Stablecoins enable seamless switching between assets, greatly enhancing trading efficiency.
Market Stability: Even in a volatile market environment, the trading volume of stablecoins remains stable, indicating their importance in payment and storage scenarios.
2. Regional Growth
Latin America and Africa: The stablecoin market in these regions grew by 40%-50% year-on-year. Due to strong demand for trustless currency, stablecoins have performed well in these areas.
Industry Investment: For example, Tether launched an educational program, and Circle expanded its payment services to Latin America, supporting further growth in the regional market.
3. New Products and Trends
Innovative Products: Products like USDtb launched by BlackRock and Ethena Labs provide a safe and convenient way for traditional funds to enter DeFi.
Regulatory Driven: As the regulatory environment improves, more funds will flow into the blockchain, further promoting the prosperity of the stablecoin ecosystem.
The growth of stablecoins is not only a reflection of market demand but also an important sign of the crypto industry gradually integrating into the mainstream economy.
IV. Explosion of On-chain Activities
In 2024, on-chain activities ushered in a comprehensive explosion, showcasing strong growth momentum in trading volume, user activity, and technological innovation.
1. Expansion of On-chain Ecosystem
The Rise of Layer 2: L2 solutions such as Base, Arbitrum, and Optimism, along with non-EVM chains like Solana, have attracted a large number of users to switch to on-chain transactions that are cheaper and faster.
TVL Growth: The trading volume of decentralized exchanges (DEX) and perpetual contracts increased by 150% year-on-year, with total locked value (TVL) growing by 2-3 times.
2. Highlights in Emerging Fields
Meme Coin Craze: The meme coin wave triggered by pump.fun led to a surge in trading volume and boosted the growth of ecosystems like Raydium.
Trading Bots: The usage of trading bots like Photon and BONKbot continues to rise, making them some of the highest revenue-generating protocols in the crypto space.
3. User Experience and Retention
Mobile-Friendly Interface: The TON mini app successfully attracted over 50 million users, providing strong support for the growth of on-chain activities.
Future Development Directions: Optimizing user experience and improving user retention rates will become key to protocol development.
The growth of on-chain activities reflects not only technological advancements but also indicates broader user participation and the realization of application scenarios in the future.
V. Summary and Outlook
2024 is a milestone year in the development of the crypto market. From healthy market growth to the influx of institutional funds, from the rise of stablecoins to the explosion of on-chain activities, the entire industry has demonstrated unprecedented vitality and potential.
Looking ahead to 2025, we have reason to believe:
Institutional participation will deepen further: With the introduction of more financial instruments, traditional capital will accelerate its influx into the crypto market.
Technological innovation will drive growth: Layer 2 solutions, cross-chain technology, and user-friendly applications will become the engines of future growth.
Acceleration of Global Trends: Emerging markets such as Latin America and Africa will become important growth points for the crypto industry.
In summary, the crypto market is standing at a new starting point, with opportunities and challenges coexisting in the future. We look forward to 2025 continuing the strong momentum of 2024, bringing greater breakthroughs and transformations to the industry.
