After experiencing the harsh winter of 2022, the crypto industry in 2024 has been reborn.
Even without Donald Trump’s grand slogan of “Crypto Capital of the Earth”, 2024 is destined to be a significant year in the history of cryptocurrency development, as it is being integrated into the mainstream financial system at an unprecedented speed.
Patrick Kirby, policy advisor to the Crypto Innovation Committee, said at an industry conference in 2024: "The approval of the spot Bitcoin ETF and Ethereum ETF is undoubtedly an important turning point in the development of the industry. Looking back on the history of cryptocurrency, we have to marvel at its rapid development."
With Bitcoin breaking 100,000, as well as a series of key regulatory developments and election results, cryptocurrencies will undoubtedly play a more important role in the future political and economic arena. In this article, the BitPush editorial team will take you through some of the important developments in the cryptocurrency field in the past 12 months.
Mainstream Efforts to Embrace Cryptocurrency
Crypto is moving more firmly into the mainstream, and the most obvious evidence of this is that traditional financial giants are opening their arms to embrace this emerging asset class - and its medium is the favored investment tool: exchange-traded funds (ETFs) .
ETFs, which are funds traded on exchanges like stocks, have cleverly built a bridge that allows investors to easily participate and enjoy the growth dividends of the cryptocurrency market without having to directly hold digital assets.
In January 2024, the U.S. Securities and Exchange Commission (SEC) historically approved the listing and trading of 11 spot Bitcoin ETFs, ushering in a new era of cryptocurrency investment in the United States.
According to Bitcoin.com statistics, as of December 24, the holdings of U.S. spot Bitcoin ETFs exceeded 1.13 million BTC in less than a year, which shows its ability to attract money.
The Ethereum ETF also performed well, attracting inflows of US$14.28 billion, accounting for 2.93% of Ethereum's market value, becoming a highlight in the cryptocurrency investment field this year.
The booming development of ETFs clearly demonstrates that mainstream institutions are increasingly accepting cryptocurrencies. As Sumit Roy, senior analyst at ETF.com, foresees, "It is conceivable that in the future, spot Bitcoin ETFs may even account for 10%, 20%, or even more of the Bitcoin market value."
Memecoin’s Breakthrough and Wealth-Creating Effect
Memecoin's wealth-creating effect and cultural output once again confirm the powerful force of "entertainment first" in the Internet era. In the wave of cryptocurrency moving towards institutionalization and professionalization, Memecoin is a trend that cannot be ignored.
According to Artemis data, Meme Coin is the third most profitable narrative in 2024, with an average annual return of 201%, far exceeding the market average return of 128%.
For example, Fartcoin’s valuation has quickly climbed to $836 million since its launch in October; Patriot’s token, which came into being due to Trump’s re-election, soared 626% in just one week, with a market value of over $73 million. Its community even spent a huge amount of money to build a 22-foot-high bronze statue of Trump to celebrate this “victory.” The magic of Memecoin is evident.
The technical support behind the Memecoin craze is Solana. With its high performance and low cost advantages, it has attracted 89% of new Memecoin projects to take root here, making it a veritable fertile ground for Memecoin.
Crypto influences politics
The 2024 presidential election will transform cryptocurrency’s status from a niche movement to a powerful player in American politics.
The cryptocurrency industry has raised a record $238 million in donations this election season, according to data compiled by blockchain analytics platform Breadcrumbs and FOX Business.
Some campaign ads did not mention cryptocurrencies, which some public interest advocacy groups criticized, with Public Citizen writer Ray Claypool saying: "This tsunami of money is a naked attempt by for-profit corporations to put private economic priorities above the public interest."
Number of Crypto Users Soars to All-Time High
According to Token Terminal, as of early December, the number of cryptocurrency holders reached 18.7 million. The industry is also attracting a wider variety of investors.
The Coinbase study reports that cryptocurrency holders don’t vote in a uniform way, nor do they always conform to the stereotype of “techies in hoodies.” The study found that 18% of cryptocurrency holders are 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 was passed by the U.S. House of Representatives in May, marking a key step in the U.S.’s efforts to regulate digital assets. The passage of the bill, called the Financial Innovation and Technology Act for the 21st Century (FIT21), in a rare bipartisan gesture is particularly noteworthy. In an increasingly partisan political arena, 71 Democratic lawmakers voted in favor of the bill alongside more than 200 Republicans, fully demonstrating its importance. Patrick Kirby of the Crypto Innovation Commission said the passage of the market structure bill was “a major turning point in the history of the industry.”
The FIT21 Act aims to provide cryptocurrency companies with clearer regulatory guidance, 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 the development of the industry.
The bill has now been submitted to the Senate for deliberation. Some analysts believe that the Senate may introduce more forward-looking legislation on this basis to better respond to the challenges brought by the rapidly developing digital asset market, such as the regulation of stablecoins.
US states ready to embrace cryptocurrencies
Bitpush previously reported that Ohio Congressman Derek Merrin proposed a bill to establish a Bitcoin reserve in the state treasury and authorize 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 United States are actively exploring the possibility of incorporating cryptocurrencies into their fiscal strategies.
Texas Congressman Giovanni Capriglione said that inflation is "the biggest enemy of our investment" and he believes that establishing a strategic Bitcoin reserve will be a "win-win" for the state government. This view is also shared by some other legislators. The scarcity of Bitcoin gives it a certain anti-inflation attribute, which is also an important reason why some legislators support its inclusion in the state's fiscal reserves.
Although there are still many challenges on the road ahead, the trend of mainstreaming is irreversible. We have reason to expect that in the near future, cryptocurrency will play a more important role in the global economy and politics.
