Author: BitpushNews
After experiencing the winter of 2022, the cryptocurrency industry of 2024 has already been reborn.
Even without Donald Trump's grand slogan of 'The Crypto Capital of the World,' 2024 is destined to be a remarkable chapter in the history of cryptocurrency development, as it integrates into the mainstream financial system at an unprecedented pace.
Patrick Kirby, a policy advisor at the Cryptocurrency Innovation Committee, stated at an industry conference in 2024: "The approval of spot Bitcoin ETFs and Ethereum ETFs is undoubtedly a significant turning point in the industry's development. Looking back at the journey of cryptocurrencies, we cannot help but marvel at its rapid growth."
With Bitcoin breaking 100,000, along with a series of key regulatory developments and election results, cryptocurrencies will undoubtedly play an increasingly important role on the political and economic stage in the future. This article will take you through some significant advancements in the cryptocurrency space over the past 12 months.
Mainstream institutions are eager to embrace cryptocurrencies
The pace at which cryptocurrency is moving toward the mainstream is increasingly firm, and the most significant evidence is that traditional financial giants are opening their arms to embrace this emerging asset class—its medium is the highly favored investment tool: exchange-traded funds (ETFs).
ETFs, which are funds traded on exchanges like stocks, cleverly build a bridge that allows investors to easily participate and enjoy the growth dividends of the cryptocurrency market without directly holding digital assets.
In January 2024, the U.S. Securities and Exchange Commission (SEC) historically approved the listing of 11 spot Bitcoin ETFs, opening a new era of cryptocurrency investment in the U.S.
According to Bitcoin.com, as of December 24, the holdings of the U.S. spot Bitcoin ETF exceeded 1.13 million BTC in less than a year, demonstrating its strong capital-raising ability.
Ethereum ETFs have also performed impressively, attracting $14.28 billion in inflows, accounting for 2.93% of Ethereum's market value, becoming a major highlight in the cryptocurrency investment field this year.
The booming development of ETFs clearly indicates 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 may even account for 10%, 20%, or even higher proportions of Bitcoin's market value."
Memecoins break through barriers and create wealth
The wealth creation effect and cultural output of Memecoins once again confirm the powerful force of 'entertainment first' in the internet age. In the wave of cryptocurrencies moving toward institutionalization and professionalization, 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 up to 201%, far exceeding the market's average return rate of 128%.
For example, Fartcoin rapidly rose to a valuation of $836 million since its launch in October; the Patriot token, born out of Trump's re-election, skyrocketed 626% in just one week, with a market cap exceeding $73 million, and its community even spent a fortune to build a 22-foot tall bronze statue of Trump to celebrate this "victory," showcasing the magic of Memecoin.
The technological support behind the Memecoin craze is Solana, which, with its high performance and low cost advantages, has attracted 89% of new Memecoin projects to take root 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 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, which prompted criticism from some advocacy groups. Public Citizen author Ray Claypool stated: "This tsunami of money is a blatant attempt by profit-making enterprises to prioritize private economic interests over the public good."
The number of cryptocurrency users has skyrocketed 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 more diverse types of investors.
A research report from Coinbase stated that the voting methods of cryptocurrency holders are not uniform and do not always match the stereotype of "tech people in hoodies." 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 in the works for nearly a year passed in the U.S. House of Representatives this May, marking a key step for the U.S. in regulating the digital asset space. The bill, named the (21st Century Financial Innovation and Technology Act) (FIT21), was passed with rare bipartisan cooperation, making it particularly noteworthy. In an increasingly polarized U.S. political landscape, 71 Democratic lawmakers joined over 200 Republican lawmakers in voting in favor, reflecting the bill's significance. Patrick Kirby from the Cryptocurrency Innovation Committee stated that the passage of this market structure bill is "a significant 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 should be classified as commodities, thereby ending the 'tug-of-war' between the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) over 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 introduce more forward-looking legislation based on this to better address the challenges posed by the rapidly evolving digital asset market, such as the regulation of stablecoins.
U.S. states are preparing to embrace cryptocurrencies
Bitpush previously reported that Ohio State Representative Derek Merrin proposed a bill to establish a Bitcoin reserve at 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 stated bluntly that inflation is "the biggest enemy of our investments" and believes that establishing a strategic Bitcoin reserve would be a "win-win" for state governments. This view has also been endorsed by some other legislators. The scarcity of Bitcoin gives it a certain anti-inflation property, which is one of the important reasons why some legislators support including it in 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 an even more important role in the global economy and politics.
