Author: CoinGecko
Compiled by: Bai Hua Blockchain
The fourth Bitcoin halving in 2024 marked the beginning of the fourth bull market cycle for the cryptocurrency market, although not in the way many had expected. The market's momentum was significantly driven by changes in macroeconomic policies, including the approval of a U.S. spot ETF, central bank rate cuts, and the re-election of Donald Trump, at the 15th anniversary of Bitcoin's birth. These changes brought cryptocurrencies back into the mainstream spotlight after the FTX collapse, with ETFs providing new channels for capital inflow. Bitcoin hit a new all-time high of $108,135 on December 17, driving the total cryptocurrency market capitalization to a new record of $3.91 trillion.
Our 2024 annual crypto industry report covers analysis from the crypto market landscape to Bitcoin and Ethereum, delving into the decentralized finance (DeFi) and non-fungible token (NFT) ecosystems, and reviewing the performance of centralized exchanges (CEXs) and decentralized exchanges (DEXs).
We have summarized the 7 key highlights, and the full 53-page report is available upon request:
1) In Q4 2024, the total cryptocurrency market capitalization grew by 45.7% to close at $3.91 trillion, a 97.7% year-over-year increase.
2) Bitcoin increased its market dominance, now accounting for 53.6% of the total crypto market capitalization.
3) Bitcoin outperformed major asset classes in both the full year and Q4 2024.
4) The market capitalization of AI Agents grew by 322.2% in Q4 2024, from $4.8 billion to $15.4 billion.
5) In Q4 2024, the transaction volume of the top 10 Ethereum Layer 2s grew by 48.3%, with Base capturing 48.3% of the transaction volume.
6) In Q4 2024, the spot trading volume of centralized exchanges (CEXs) reached a new all-time high of $6.45 trillion, up 111.7% quarter-over-quarter.
7) In Q4 2024, Solana surpassed Ethereum to become the dominant chain for DEX trading, accounting for over 30% of all DEX transactions.
1. In Q4 2024, the total cryptocurrency market capitalization grew by 45.7% to close at $3.91 trillion
In Q4 2024, the total cryptocurrency market capitalization increased by 45.7% (or $1.07 trillion) to close at $3.40 trillion. Although the market lost some momentum in Q3, it rebounded in the mid-Q4, particularly after Donald Trump's victory in the U.S. presidential election.
In 2024, the total cryptocurrency market capitalization nearly doubled, growing by 97.7%. It reached a new all-time high of $3.91 trillion in mid-December before retreating to $3.40 trillion. The average daily trading volume in Q4 was $200.7 billion, up 128.2% from $88.0 billion in Q3.
2. Bitcoin's market dominance increased, now accounting for 53.6% of the total crypto market capitalization
Bitcoin's (BTC) market dominance continued to rise, albeit at a slower pace, growing by 0.9% in Q4 2024. XRP was the standout performer in the quarter, with its market share increasing by 2.0% to 3.5%, propelling it to the 4th position, surpassing BNB and Solana (SOL).
Additionally, Dogecoin (DOGE) became a new entrant in the top 7 by market cap, replacing USDC. This marks the first time since April 2021 that USDC has fallen out of the top 7. Ethereum (ETH) continued to decline in Q4, with its market share dropping from 13.4% in Q3 to 11.8%, the lowest level since April 2021.
3. Bitcoin outperformed major asset classes in both the full year and Q4 2024
Q4 2024 was a milestone quarter for Bitcoin (BTC), as it breached the $100,000 mark for the first time, reaching a high of $108,135 on December 9th before slightly retreating to close the year at $93,508. This represents a +121.5% gain from the start of the year.
Bitcoin's rally began from the $54,000 low in Q3, but saw another significant surge after Donald Trump's victory in the U.S. presidential election, further supported by the Federal Reserve's interest rate cuts, with expectations of continued monetary easing policies in 2025.
Meanwhile, the average daily trading volume surged from $31.1 billion in Q3 to $62.6 billion in Q4, a +101.3% increase. On December 6th, when Bitcoin broke above $100,000, the spot trading volume exceeded $190 billion, a new annual high.
The stock market also performed strongly in Q4, with the Nasdaq rising +8.0% and the S&P 500 gaining +3.0%. The U.S. Dollar Index (DXY) also performed well, increasing by +7.0%, driven mainly by the depreciation of other major currencies. The Japanese Yen (JPY) was the worst performer in Q4, declining -8.0%, nearly erasing the gains from the end of the Yen carry trade.
4. The market capitalization of AI Agents grew by 322.2% in Q4 2024, from $4.8 billion to $15.4 billion
The AI Agents category saw a rapid rise after the launch of GOAT on Solana in early October. While the "Terminal of Truths" narrative around AI agent KOLs has largely subsided, the category saw an astounding 322.2% growth in market capitalization in Q4 2024, from $4.8 billion to $15.4 billion.
Currently, Solana and the Base blockchain are the only significant platforms for AI Agents. By the end of 2024, the Base blockchain has significantly captured market share from Solana and GOAT through projects like AIXBT and Virtuals Protocol (VIRTUAL). However, Solana has started to regain some market share after launching GRIFFAIN and AI Rig Complex (ARC) in late December.
5. In Q4 2024, the transaction volume of the top 10 Ethereum Layer 2s grew by 48.3%, with Base capturing 48.3% of the transaction volume
Ethereum Layer 2s continued to grow in Q4 2024, with the top 10 Layer 2s reaching a daily average transaction volume of 15 million. The growth was primarily driven by Base, which saw its daily average transaction volume surge from 4 million in Q3 to 7.2 million in Q4, an increase of +78.7%. In comparison, the Ethereum mainnet processed around 1.2 million transactions per day in Q4. 48.3% of the transactions on the top 10 Layer 2s occurred on Base in Q4.
Taiko also emerged as the second-largest and most active Layer 2, surpassing Arbitrum. Taiko captured 20.6% of the transaction volume in Q4, compared to Arbitrum's 13.7%. Taiko's transaction volume grew by +85.5% quarter-over-quarter, while Arbitrum's grew by only +14.0%. Taiko's significant growth can be attributed to the onboarding of several DeFi protocols on this relatively new chain.
6. In Q4 2024, the spot trading volume of centralized exchanges (CEXs) reached a new all-time high of $6.45 trillion, up 111.7% quarter-over-quarter
In Q4 2024, the spot trading volume of the top 10 centralized exchanges (CEXs) reached $6.45 trillion, up 111.7% quarter-over-quarter.
This is the first time the quarterly trading volume has exceeded $60 trillion. The total trading volume of the top 10 CEXs in 2024 was $174 trillion, compared to $72 trillion in 2023.
BN continues to maintain a dominant position, with a market share of 34.7% among the top 10 CEXs at the end of December. It is worth noting that BN's trading volume exceeded $1 trillion in December, which is the second time it has reached this milestone in 2024.
Upbit was the fastest growing CEX in the fourth quarter, with its trading volume increasing from $135.5 billion to $561.9 billion, a quarter-on-quarter increase of +314.8%. With the declaration of martial law in South Korea on December 3, Upbit's trading volume surged. During this turbulent period, the daily trading volume reached about $21 billion, six times its average daily trading volume.
7. Solana surpassed Ethereum to become the dominant chain for decentralized exchange (DEX) trading in the fourth quarter of 2024, accounting for more than 30% of all transactions
In the fourth quarter of 2024, Solana became the dominant chain for decentralized exchange (DEX) trading, with a market share of over 30%. In the fourth quarter, Solana's trading volume reached $219.2 billion, a quarter-on-quarter increase of +152.0%. In comparison, Ethereum's trading volume was $184.3 billion, with a market share between 25% and 28%. Nevertheless, Ethereum still led Solana on an annual basis, accounting for 33.5% of DEX trading volume, while Solana's market share was 25.2%.
Meanwhile, Base successfully surpassed Arbitrum and took the lead in the fourth quarter. Its market share exceeded 14% in the fourth quarter, while Arbitrum's market share remained between 10% and 11%. The Layer 2 supported by Coinbase reached a market share of 19.0% in December, a quarter-on-quarter increase of +206.5%. Base's trading volume was $116.7 billion, while Arbitrum's was $79.2 billion.
Tron was the fastest growing chain among the top ten, with a quarter-on-quarter increase of +232.7%. Its trading volume grew from $2.9 billion in the third quarter to $9.6 billion in the fourth quarter. In December 2024, Tron's market share was 2.1%, making it the sixth largest chain.
