According to Binance Research's latest research report, the cryptocurrency market experienced a historic surge in December 2024, with the market capitalization reaching a record high of $3.91 trillion, setting a new market peak. This surge was mainly driven by an optimistic regulatory environment, the continued influx of institutional investors, and the record-high price of Bitcoin.
Bitcoin broke through $108,000 in December 2024, reaching an all-time high. Factors driving this surge include MicroStrategy's successful inclusion in the Nasdaq-100 Index and the company's continued large-scale purchase of Bitcoin.
However, the market's optimism was dampened at the end of December. The Federal Reserve's announcement of a 0.25% rate cut in December, along with a reduction in the planned number of rate cuts in 2025 from four to two, triggered a severe market correction, resulting in the cryptocurrency market's total market capitalization shrinking by over $500 billion in just a few days.
Despite the market turmoil, 2024 was a remarkable year for Bitcoin, with its market capitalization growing by approximately 123.4%, making it the seventh-largest asset globally, surpassing traditional giants like Saudi Aramco and Silver.
Another standout performance came from Ethena's stablecoin USDe, which quickly grew to a market capitalization of over $5.9 billion, surpassing DAI to become the third-largest stablecoin globally. USDe's success can be attributed to its high-yield staking mechanism and the inclusion of sUSDe as a collateral asset in the Aave protocol in November 2024.
The decentralized spot and perpetual contract trading volumes reached new highs of $326 billion and $356 billion, respectively, in December 2024, indicating strong demand for decentralized trading. The growth of decentralized perpetual contract trading volume exceeded 370%, with platforms like Hyperliquid being the main drivers.
Additionally, the total value locked (TVL) in lending protocols and liquid staking protocols reached new highs of $55 billion and $71 billion, respectively. The rapid growth of the DeFi (Decentralized Finance) ecosystem is closely related to the incoming Trump administration's supportive policies towards cryptocurrencies.
AI agents have also emerged as a new force in the cryptocurrency market, with the market capitalization of leading AI agent platforms and individual agents already reaching billions of dollars, with daily exposure approaching 100,000 times. The main AI agent platforms include Virtuals and ai16z (the development team of the Eliza framework), which provide users with tools to create and operate their own AI agents.
Binance Research's latest report: AI agent development is eye-catching
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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