Bankless 2024 Mid-Year Review: The Bull Market Continues, Don't Get Left Behind

Crypto in 2024: Mid-Year Reflections

Author: Banklesss

Compiled by: Mary Liu, BitpushNews

Encryption technology is advancing at such a rapid pace that it is hard to keep up.

The first half of 2024 is no exception, with new chains and applications emerging every day and the crypto industry gradually gaining mainstream recognition in the financial community.

In the frenzy of shill and bullish price action, it’s easy to lose sight of the bigger picture. So let’s zoom out and focus on the real signals amidst the “noise”.

TL;DR: Encryption is just getting started, don’t get left behind.

In this article, we will review the key developments in the industry in the first half of 2024 and explore the landmark events and trends.

1. Cryptocurrency is now mainstream

Remember when encryption was just the stuff of cypherpunks? Those days are gone.

In the first half of 2024, cryptocurrencies force their way into the mainstream.

The turning point was the long-awaited approval of a spot Bitcoin ETF in January. Suddenly, Wall Street had easy access to the cryptocurrency market, and they moved in aggressively. Eleven ETFs were launched in one day, with record trading volumes.

Wall Street isn’t stopping at Bitcoin. The U.S. Securities and Exchange Commission (SEC) finally approved key filings for eight Ethereum spot ETFs in May, further validating the entire crypto ecosystem and opening the door to broader institutional adoption.

It’s not just ETFs. Fortune 500 companies are getting in on the action, too. Record numbers of companies are launching crypto projects, from consumer payments to tokenized treasuries to a dizzying array of other projects.

What is the bottom line? Cryptocurrency is no longer a fringe product. It is gaining favor among the bigwigs of the financial world, from Wall Street to Silicon Valley. Everyone knows that the future of finance is cryptocurrency.

 Source: The State of Crypto: The Fortune 500 Moving Onchain

2. Cryptocurrency adoption accelerates

The pace of cryptocurrency adoption is remarkable. The number of active users on the blockchain has increased significantly, with the number of active addresses reaching an all-time high of 42.92 million in April.

 Source: State of Crypto Index

This isn’t just a passing trend; it shows that users can do something meaningful on-chain.

One factor could be the proliferation of different types of applications and services in the crypto ecosystem, from social finance applications like Farcaster, Friend.tech, and Fantasytop, to new chains and innovative DeFi primitives like restaking.

Another factor is the resurgence of DeFi. DeFi activity and attention are rising again, indicating a renewed interest and activity in the chain that has moved beyond simple speculation and perhaps toward real-world utility, such as stablecoins for payments and asset tokenization for RWAs such as government securities.

The momentum is clear: more and more people are joining the chain, and they are finding more reasons to stay.

3. Ethereum is still dominant, but Solana is on the rise

Ethereum remains the dominant force in the cryptocurrency space. More than 60% of the total value locked in DeFi is on Ethereum, and the Ethereum ecosystem is the foundation for countless applications and chains.

This dominance is not only about where the hot money is flowing, but also about the technological progress on the roadmap. Ethereum is scaling through L2s like Base, which have seen widespread adoption this year, and thanks to the recent Dencun upgrade, provide users with significantly lower gas fees.

However, cryptocurrencies are now more than just Ethereum and its ecosystem. Today, we have ecosystems like Solana that are competing for the market.

Forget the hype for a moment and let’s focus on the numbers.

Solana’s daily active users are 2-3x higher than they were this time last year, near the peak of the 2021 frenzy. This user growth isn’t illusory; it’s translating into real usage — Solana’s DEX volume has even surpassed Ethereum multiple times this cycle as it has become a venue for memecoin trading.

Additionally, Solana’s innovation engine is thriving. Technical advances like zk-compression and user-friendly features like Blinks are laying the foundation for broader adoption, and we can see Solana’s network effects taking root.

Make no mistake: Ethereum is not going away. Its mature network effects and large developer community ensure its continued relevance in the cryptocurrency space.

But Solana’s amazing progress can’t be ignored. Both ecosystems are thriving in their own unique ways. This parallel adoption is a win for cryptocurrency users because it accelerates innovation and moves the entire industry forward.

4. Keep moving forward, and keep going up

Bitcoin hit a record high in March, breaking through the $70,000 mark. Although the carnival seems to have ended rather suddenly, we should not be too depressed, as this bull run is far from over.

Let’s be honest, the market has been a bit crazy, hasn’t it? Stocks are hitting all-time highs, meme coins are soaring, and every celebrity is launching their own token. The reality check was probably overdue, hence the big drop we experienced in June. But here’s the key point: sentiment may have fallen sharply, but the long-term outlook for cryptocurrencies remains positive.

Market sentiment may be shifting, but don’t ignore the bullish signals.

The long-awaited ETH ETF is on the horizon, the Federal Reserve is about to cut interest rates, and with potential positive policy shifts, cryptocurrencies are likely to continue to have a place on the political stage during the US election.

This pullback may feel like the end, but in crypto, it is often a buying opportunity. So unless you are facing a margin call, hold on and enjoy the ride.

Conclusion

So, will the first half of 2024 be smooth sailing for cryptocurrencies? Not really.

We’ve seen our fair share of noise — regulatory FUD, narrative bubbles, meme coin mania, celebrity coins, volatile price action, and disappointing airdrops.

But hey, this is crypto. Zoom out and things look a lot brighter. Crypto adoption is accelerating, institutional interest is at an all-time high, and the regulatory environment is improving. All of these signs point to the industry continuing to grow as fundamentals are strong and future catalysts are already in play.

The bull market has to continue.