2024 is a critical year for the cryptocurrency industry, characterized by a combination of regulatory changes, technological innovations, and market milestones. The re-election of Trump, the breakthrough of Bitcoin's price to a new all-time high, and the approval of crypto ETFs mark a significant turning point in the mainstream adoption of cryptocurrencies. Meanwhile, significant progress has been made in areas such as Layer-2 scaling, DePIN (Decentralized Physical Infrastructure Network), and AI integration, demonstrating the industry's continued vitality. However, challenges such as regulatory pressure, quantum computing threats, and market volatility will continue to impact the future of the crypto industry.
Top 10 influential events in the crypto industry in 2024:
1. Trump's Re-election and Shift in Crypto Policy
Background:
Donald Trump was re-elected as the President of the United States in 2024, reigniting optimism for an improved regulatory environment for cryptocurrencies. Trump has expressed a desire to make the US a "global crypto capital" and has criticized the SEC for over-regulation, proposing to give the CFTC more regulatory authority over the digital commodity spot market, including Bitcoin and Ethereum.
Impact:
Regulatory Clarity: The Trump administration's policies are expected to relax restrictions and reverse the SEC's harsh enforcement stance under Gary Gensler.
Institutional Adoption: A clearer regulatory framework will boost the confidence of institutional investors, driving capital inflows into the market. For example, the BlackRock-owned Bitcoin ETF (IBIT) has surpassed $54 billion in assets under management.
Geopolitical Competition: The US will take measures to compete with Asia, Europe, and other regions for the global dominance of the crypto industry. Bitcoin strategic reserves have become a topic of discussion.
Details:
Trump Elected TIME's 2024 Person of the Year: What's Next for Trump's Next 4 Years
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2. Bitcoin Price Breaks $100,000
Background:
Driven by inflationary pressures, widespread institutional adoption, and the launch of a Bitcoin spot ETF, the price of Bitcoin reached a new all-time high of $100,000 in 2024.
Impact:
Mainstream Acceptance: Breaching this psychological barrier further solidifies Bitcoin's status as "digital gold," highlighting its anti-inflationary and store-of-value properties, but also its correlation with the US stock market.
Capital Influx: Institutional investors and retail traders have flooded the market, with the Bitcoin price rally also fueling the market boom of Altcoins such as Ethereum, Solana, and Cardano.
Network Security: The high valuation will attract more miners to invest in the Bitcoin network, enhancing its security and decentralization.
Details:
3. Approval of Bitcoin Spot ETF
Background: After years of debate, the US SEC finally approved the first Bitcoin spot ETFs in early 2024, allowing investors to gain direct exposure to Bitcoin through a regulated financial product.
Impact:
Market Liquidity: ETFs have brought billions of dollars in capital to Bitcoin, improving its liquidity and price stability.
Institutional Adoption: Pension funds, hedge funds, and traditional investors have gained a legitimate channel to allocate Bitcoin assets.
Industry Validation: The approval signifies an increasing acceptance of Bitcoin as a legitimate asset class.
Details:
11 Facts About the BTC ETF Listing in the US
Bloomberg: Major Funds Continue to Enter, Bitcoin ETF Attracts $17 Billion in Net Inflows This Year
Goldman Sachs and Morgan Stanley Bought Over $600 Million in Bitcoin Spot ETFs in Q2
4. Ethereum ETF and Post-Merge Upgrades
Background: Following the success of Bitcoin, Ethereum ETFs have also gained increasing popularity. Meanwhile, the Ethereum development team continues to push forward upgrades such as proto-danksharding (EIP-4844) to improve network scalability and reduce fees.
Impact:
Scalability: Proto-danksharding will reduce Layer-2 transaction costs and increase Ethereum's throughput, enhancing its competitive edge.
Institutional Interest: Ethereum ETFs will accelerate institutional adoption of ETH and decentralized finance (DeFi).
DeFi Growth: Lower gas fees will promote the adoption of decentralized applications (dApps) on Ethereum.
Details:
Why is the Ethereum Spot ETF Underperforming?
Why is Ethereum Demand Lacking After the ETF Launch?
5. MEME Mania and PumpFun Explosion
Background: MEME coins, represented by DOGE and SHIB, have risen again in 2024 due to social media hype and community-driven momentum, particularly during the US election period. The PumpFun trading platform has further fueled this trend, with its low-barrier MEME coin issuance and trading mechanisms, as well as its gamified and entertainment-focused trading model, successfully attracting a large number of young investors. Since its launch, PumpFun has generated nearly $300 million in revenue.
Impact:
User Base Expansion: The MEME coin frenzy and the rise of the PumpFun platform have lowered the entry barrier for retail investors to participate in the crypto market, accelerating the growth of the user base.
Community Influence: The success of MEME coins has highlighted the power of grassroots communities in driving crypto adoption.
Volatility Risks: The speculative nature of MEME coins has led to violent market fluctuations, increasing the potential risks for investors.
Details:
Current State of the Memecoin Market: From Doge to Shiba Inu to Pepe
Doge Hits New High: AI Meme Storytelling is Captivating and Sustainable
6. Rise of DePIN (Decentralized Physical Infrastructure Network)
Background: DePIN projects have demonstrated the potential of blockchain technology in the physical infrastructure domain, using incentive mechanisms to build decentralized networks for data storage, computing resources, and more.
Impact:
Real-world Applications: DePIN will connect blockchain to the physical world, expanding into areas such as cloud computing and energy networks.
Capital Influx: Decentralized infrastructure has attracted significant venture capital and institutional attention.
Cost Optimization: DePIN networks have reduced the costs of data transmission, storage, and energy supply, improving economic efficiency.
Details:
7. Layer-2 Expansion and the "Rollup War"
Background: Ethereum Layer-2 solutions such as Arbitrum, Optimism, and ZK-Rollups are fiercely competing for market share, providing low-cost and efficient blockchain experiences.
Impact:
User Growth: Layer-2 technology makes transactions faster and cheaper, driving widespread adoption of DeFi and NFTs.
Interoperability: Layer-2 solutions are bridged to other chains, enhancing the overall usability of the blockchain ecosystem.
Accelerated Innovation: Competitive pressure drives technological innovation, further reducing user costs.
Details:
In-depth Thoughts on Solving Interoperability and Rollup Fragmentation Issues
What is Based Rollup? What are its Advantages?
8. Regulatory Crackdown in Europe and Asia
Background: The European MiCA (Crypto Asset Markets) regulation has officially taken effect, and Asian countries are also gradually strengthening crypto market regulation, introducing stricter compliance requirements.
Impact:
Compliance Costs: Projects will face high compliance costs, and some small businesses may exit the market.
Market Consolidation: Regulatory pressure will accelerate market consolidation, with the strong getting stronger.
Global Arbitrage: Crypto projects may migrate to regions with more lenient regulations, highlighting the competitive global policy environment.
Details:
Compliance Highlights for Stablecoin Issuers Facing MiCA in Europe
Europe's MiCA is Finally Here, How Will the US Respond?
9. Artificial Intelligence Integrating with the Crypto Sector
Background: By 2024, AI technology will achieve breakthroughs in trading algorithms, security audits, and decentralized governance (DAO), enhancing the practicality of blockchain technology.
Impact:
Automated Trading: AI-driven trading algorithms will improve market efficiency and accuracy.
Enhanced Security: AI tools will help detect and prevent smart contract vulnerabilities.
DAO Optimization: AI applications in DAO governance will increase transparency and execution efficiency, such as ai16z.
Details:
Why AI Agents May Be the Key Breakthrough in This Cycle
The Next Stop for AI Agents - The Transition from Intelligent Agents to Economic Agents
10. Binance's Settlement with the US Government
Background: Binance founder CZ was indicted and sentenced for violating anti-money laundering laws and failing to fulfill compliance obligations. Ultimately, Binance reached a settlement with the US government, paying a fine of over $4 billion, with CZ resigning as CEO and serving a four-month prison sentence before being released.
Impact:
Compliance as the New Norm: The CZ incident has prompted crypto companies to actively cooperate with regulators, improving transparency and compliance standards.
Rising Compliance Costs: Leading exchanges (such as Coinbase, OKX, and Kraken) will face stricter anti-money laundering (AML) and know-your-customer (KYC) scrutiny, significantly increasing their operating costs.
Accelerated Market Consolidation: Smaller exchanges may face bankruptcy or acquisition by industry giants due to the inability to bear compliance costs.
Details:
Despite Facing New Class Action Lawsuits, CZ May Be Released from Prison on Time
