Written by: BitpushNews
Having endured the winter of 2022, the cryptocurrency industry of 2024 has been reborn.
Even without Donald Trump's grand slogan of 'the world's 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, policy advisor for the Cryptocurrency Innovation Committee, stated at an industry conference in 2024: 'The approval of spot Bitcoin ETFs and Ethereum ETFs is undoubtedly an important turning point in the development of the industry. Looking back on the journey of cryptocurrency, we cannot help but marvel at its rapid development.'
With Bitcoin surpassing $100,000 and a series of key regulatory developments and election results, cryptocurrency will undoubtedly play a more important role on the political and economic stage in the future. This article by the Bitpush editorial team will take you through some significant developments in the cryptocurrency field over the past 12 months.
Mainstream is eagerly embracing cryptocurrency.
The steps toward mainstreaming cryptocurrency are becoming more and more resolute, and the most significant evidence is that traditional financial giants are opening their arms to embrace this emerging asset class — with the favored investment tool being exchange-traded funds (ETFs).
ETFs, which are funds traded on exchanges like stocks, cleverly build a bridge that allows investors to easily participate in 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 and trading of 11 spot Bitcoin ETFs, marking the beginning of a new era in U.S. cryptocurrency investment.
According to Bitcoin.com statistics, as of December 24, the holdings of U.S. spot Bitcoin ETFs surpassed 1.13 million BTC in less than a year, highlighting 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 value, becoming a major highlight in the cryptocurrency investment field this year.
The flourishing development of ETFs clearly confirms that mainstream institutions are increasingly accepting cryptocurrency. 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.'
The Memecoin phenomenon and its wealth creation effects.
The wealth creation effect and cultural output of Memecoin once again confirm the powerful force of 'entertainment first' in the internet age. Amidst the wave of cryptocurrency becoming institutionalized and professionalized, Memecoin is a trend that cannot be ignored.
According to Artemis data, meme coins were the third-largest profitable narrative in 2024, with an average annual return rate of 201%, far exceeding the market's average return rate of 128%.
For example, Fartcoin's valuation surged to $836 million shortly after its launch in October; the Patriot token, born from Trump's re-election, skyrocketed 626% in just one week, with a market cap exceeding $73 million. Its community even spent a fortune to create a 22-foot tall bronze statue of Trump to celebrate this 'victory,' showcasing the magic of Memecoin.
The technology supporting the Memecoin craze is Solana, which, due to its high performance and low cost advantages, has attracted 89% of new Memecoin projects to take root here, becoming a veritable Memecoin fertile ground.
Cryptocurrency influences 'politics.'
The 2024 presidential election will transform the status of cryptocurrency from a niche movement to a strong participant in American politics.
According to data compiled by the blockchain analysis platform Breadcrumbs and FOX Business, donations from the cryptocurrency industry during this election season reached a record of $238 million.
Some campaign ads do not mention cryptocurrency, and some advocacy groups have criticized this. Public Citizen author Ray Claypool stated: 'This tsunami of money is a blatant attempt by for-profit enterprises to prioritize private economic interests over the public good.'
The number of crypto users has soared 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.
Coinbase's research report states that the voting behavior of cryptocurrency holders is not uniform and does not always conform to the stereotype of 'tech people in hoodies.' The study found that 18% of cryptocurrency holders are stay-at-home parents, 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 this May, marking a key step in the regulation of digital assets in the U.S. This bill, named the 21st Century Financial Innovation and Technology Act (FIT21), was passed with rare bipartisan cooperation, which is particularly noteworthy. In an increasingly polarized American political landscape, 71 Democratic representatives and over 200 Republican representatives jointly cast votes in favor, reflecting the importance of this bill. Patrick Kirby of the Cryptocurrency Innovation Committee stated that the passage of this market structure bill is 'an important turning point in the development of the industry.'
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, 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 currently been submitted for Senate review, and some analysts believe the Senate may introduce more forward-looking legislation to better address the challenges posed by the rapidly evolving digital asset market, such as the regulation of stablecoins.
States in the U.S. are preparing to embrace cryptocurrency.
Bitpush 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. 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 bluntly stated that inflation is 'the biggest enemy of our investments,' believing that establishing a strategic Bitcoin reserve would be a 'win-win' for state governments. This view has also been echoed by several other legislators. The scarcity of Bitcoin gives it certain anti-inflation properties, which is also an important reason why some legislators support its inclusion in state financial 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.
