Annual review: The core force driving the growth of the crypto market in 2024

Author: Lei, Jinse Finance

In 2024, the cryptocurrency market saw remarkable growth, with multiple tokens and projects standing out with technological breakthroughs, community support, and real-world applications, redefining the future of the industry. From the innovations in Decentralized Finance (DeFi) and Layer-1 blockchains, to the deep integration of Meme coins and AI blockchains, each track has shown strong vitality and differentiated advantages. These trends not only highlight the vast potential of the diversified development of the crypto market, but also open up a new window of opportunities for investors. However, in the pursuit of high returns, investors need to be aware of the high volatility of the crypto market and carefully evaluate the actual value and long-term sustainability of each project.

Bitcoin

Bitcoin (BTC)

Category: Store of Value, Digital Gold

Gain: +120% (Broke the $100,000 mark)

Driving Factors:

• Institutional Adoption: Institutions like MicroStrategy and Tesla continue to increase their Bitcoin holdings, and the recognition of Bitcoin by financial institutions and sovereign wealth funds is constantly improving.

• Regulatory Clarity: The approval of Bitcoin ETFs has boosted market confidence and attracted more institutional investors.

• Hedge Against Inflation: Bitcoin is seen as a tool to hedge against fiat currency devaluation and geopolitical risks, especially in emerging markets.

Data Performance:

• Market Cap: The market capitalization of Bitcoin has remained above $2 trillion, maintaining a dominant market position.

• Price Growth: In 2024, the price of Bitcoin broke through $100,000, setting a new historical high.

Layer1

Ethereum (ETH)

• Category: Smart Contract Platform, Layer1

• Gain: +87%

Driving Factors:

• Ethereum 2.0 Transition: The transition to the Proof-of-Stake (PoS) mechanism has significantly improved the network's scalability and reduced energy consumption.

• DeFi and NFT Dominance: Ethereum remains the core platform for DeFi and NFTs, and its ecosystem continues to grow.

• Layer-2 Solutions: The launch of solutions like Arbitrum and Optimism has improved transaction throughput and reduced transaction fees.

Data Performance:

• Market Cap: The peak market capitalization of Ethereum reached nearly $450 billion, and the Total Value Locked (TVL) in DeFi exceeded $100 billion.

• Market Share: Ethereum controls about 70% of the DeFi market share, with several leading platforms (such as Uniswap and MakerDAO) running on Ethereum.

Solana (SOL)

• Category: High-Speed Blockchain, Smart Contract Platform

• Gain: +134%

Driving Factors:

• Speed and Scalability: Solana's throughput of 50,000 transactions per second and low transaction fees have made it the preferred platform for DeFi, NFTs, and Web3 applications.

• Institutional Investment: Supported by venture capital firms like Andreessen Horowitz, and integrated by platforms like Google Cloud.

• Ecosystem Growth: The rapid expansion of the Solana ecosystem, covering areas such as DeFi, NFTs, and gaming.

Data Performance:

• Market Cap: Solana's market capitalization exceeded $110 billion.

• Price Growth: Solana's price broke through $255, setting a new historical high.

Sui ($SUI)

• Category: Layer-1 Blockchain

• Gain: +516%

Driving Factors:

• High Scalability and Low Fees: Utilizing the unique Move programming language, Sui provides a high-speed and low-cost transaction experience.

• Grayscale Sui Trust: The partnership with Grayscale has significantly increased the awareness of Sui among institutional investors.

Data Performance:

• Sui's ecosystem has grown rapidly, attracting the participation of multiple developers and projects. It has established a stablecoin partnership with Binance. The ecosystem's TVL has grown more than 6-fold.

DEX&Middleware

Chainlink (LINK)

• Category: Oracles, Data Layer for Smart Contracts

• Gain: +80%

Driving Factors:

• Critical Technical Role: Chainlink provides decentralized oracles to smart contracts, ensuring the seamless connection between blockchains and real-world data.

• Partnership Relationships: Collaborations with platforms like Ethereum, Polkadot, and Solana have strengthened its applications in cross-chain and decentralized finance (DeFi).

Data Performance:

• Market Cap: Chainlink's market capitalization exceeded $28 billion.

• Utilization: Chainlink's oracles support thousands of smart contracts, with the cross-chain total value transferred exceeding $287 million.

Aerodrome ($AERO)

• Category: Decentralized Exchange (DEX) Token

• Gain: +2,083%

Driving Factors:

• Innovative Liquidity Pool: The introduction of the Slipstream liquidity pool has greatly improved the attractiveness for traders and liquidity providers.

• Base Network Integration: The integration with the Base network has provided a solid technical support for DeFi trading and token swaps, driving the market performance.

Data Performance:

• Aerodrome's innovative liquidity pool has made it a leading position in the decentralized exchange space. Its TVL has grown more than 10-fold.

AI Agent+MEME

Goatseus Maximus ($GOAT)

• Category: AI&Meme Token

• Gain: +415%

Driving Factors:

• Integration of Artificial Intelligence: GOAT is not just a typical Memecoin, it combines the functionality of AI and the capabilities of decentralized finance (DeFi), enhancing its unique technological features.

• Memecoin Culture: As a Memecoin, GOAT has benefited from the "cultural fever" of Memecoins, while its unique brand image and AI-integrated innovation have differentiated it from traditional Memecoins.

• Community Driven: GOAT has further enhanced the participation and loyalty of community members through a decentralized autonomous organization (DAO) governance model.

Data Performance:

• The daily trading volume of the GOAT token has reached a historical high on multiple decentralized exchanges (DEXs) and centralized exchanges (CEXs), peaking at nearly $500 million, demonstrating the market's high attention to it.

ELIZA

• Category: Early Chatbot / AI Token

• Gain: +23,873%

Driving Factors:

• Technological Innovation: ELIZA is described as an open-source modular architecture for building AI agents that seamlessly interact with users and blockchain systems, showcasing its technological differentiation from other tokens.

• Financial Incentives: 10% of the tokens are allocated to pre-snapshot platform users, demonstrating ELIZA's strategy of using distribution mechanisms to incentivize community participation.

• Human-AI Dialogue Research: The development of ELIZA aims to study human-AI dialogue and the important cognitive processes of explanation and misunderstanding.

Data Performance:

• After its launch, ELIZA's market capitalization surpassed $80 million within a short period, reaching a peak of $120 million, indicating the market's rapid acceptance and investment enthusiasm. It is currently priced at $62 million.

Virtuals Protocol (VIRTUAL)

• Category: AI and Metaverse Protocol / AI Token

Driving factors:

• Integration of Artificial Intelligence and Metaverse: Virtuals Protocol is committed to changing virtual interactions through its AI and Metaverse protocols, providing co-owned, AI-curated, and plug-and-play game AI infrastructure.

• Rapid Deployment of AI Agents: The project allows users to deploy their own AI agents (using their own tokens) in just 5 minutes, enhancing its appeal in the fields of artificial intelligence and the Metaverse.

Data Performance:

• The price of the VIRTUAL token has recently reached a new all-time high, with a market capitalization exceeding $3 billion. The VIRTUAL token has been traded on multiple cryptocurrency exchanges, including Bitget, BiKing, Hibt, BitMart, and BingX.

Animal MEME

Dogecoin ($DOGE)

• Category: Meme Token

• Increase: +356%

Driving factors:

• Celebrity Effect: Supported by celebrities like Elon Musk, Dogecoin has gained widespread recognition on social media and in actual transactions.

• Community Support: A strong and active community, with ongoing development and activities, has maintained the token's appeal.

Data Performance:

• Dogecoin's wide range of applications, including micropayments and tipping, have driven its price increase. Its market capitalization remains the top in the MEME sector.

dogwifhat ($WIF)

• Category: Meme Token

• Increase: +1,828%

Driving factors:

• Community-Driven Growth: Relying on strong community support and social media marketing, dogwifhat has quickly become one of the most popular meme tokens.

• Decentralized Characteristics: The decentralized management of the token has attracted a large number of community members, driving the price increase.

Data Performance:

• The community activity and decentralized characteristics of dogwifhat have helped it become a hot project in the market. The 24-hour trading volume is close to $1 billion.

Pepe ($PEPE)

• Category: Meme Token

• Increase: +1,794%

Driving factors:

• Strong Community Support: Pepe has expanded its market awareness through airdrops and community activities, receiving widespread community support.

• Social Media Influence: Leveraging the power of social media, Pepe has attracted a large amount of attention, driving demand and price increases.

Data Performance:

• Pepe's ongoing community activities and social media marketing have provided it with strong market momentum. Its market capitalization has risen to the third position in the MEME sector.