Author: CoinGecko
Compiled by: Bai Hua Blockchain
The fourth Bitcoin halving in 2024 marks the beginning of the fourth crypto marketbull run, although not in the way many expected. The market momentum was significantly driven by changes in macroeconomic policies around the 15th anniversary of Bitcoin's birth, including the approval of a US spot ETF, central bank rate cuts, and the re-election of Donald Trump. These changes have brought cryptocurrencies back into the mainstream spotlight after the FTX collapse, and ETFs have provided new channels for capital inflows. Bitcoin hit a new all-time high of $108,135 on December 17, driving the total crypto market capitalization to a new record of $3.91 trillion.
Our 2024 annual crypto industry report covers everything from the crypto market landscape to analyses of Bitcoin and Ethereum, delving deep into thedecentralized finance(DeFi) and non-fungible token (NFT) ecosystems, and reviewing the performance of centralized exchanges (CEXs) and decentralized exchanges (DEXs).
We have summarized the key seven highlights, and you can read the full 53-page report if needed:
1) In Q4 2024, the total crypto 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 2024 and Q4.
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 trading volume of the top 10 Ethereum Layer 2s grew by 48.3%, with Base accounting for 48.3% of the trading volume.
6) In Q4 2024, the spot trading volume of centralized exchanges 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 crypto market capitalization grew by 45.7% to close at $3.91 trillion
In Q4 2024, the total crypto 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 US presidential election.
In 2024, the total crypto market capitalization nearly doubled, growing by 97.7%. It reached a new all-time high of $3.91 trillion in mid-December before retracing to $3.40 trillion. Meanwhile, the average daily trading volume in Q4 was $200.7 billion, up 128.2% from $88.0 billion in Q3.
2. Bitcoin's market share increased, now accounting for 53.6% of the total crypto market capitalization
Bitcoin's (BTC) market share continued to rise, albeit at a slower pace, growing by 0.9% in Q4 2024. In this quarter, XRP was the standout performer, with its market share increasing by 2.0% to 3.5%, propelling it from the 7th 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 is the first time since April 2021 that USDC has failed to make the top 7. Meanwhile, 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 2024 and Q4
Q4 2024 was a milestone quarter for Bitcoin (BTC), as it breached the $100,000 mark for the first time and reached a high of $108,135 on December 9, before slightly retracing to close the year at $93,508. This means Bitcoin has gained +121.5% since 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 US presidential election. This uptrend was further supported by the Federal Reserve's rate cuts, with the market broadly expecting the accommodative monetary policy to continue into 2025.
Meanwhile, the average daily trading volume surged from $31.1 billion in Q3 to $62.6 billion in Q4, an increase of +101.3%. On December 6, when Bitcoin breached $100,000, the spot trading volume exceeded $190 billion, a new annual high.
The stock markets also performed strongly in Q4, with the Nasdaq rising +8.0% and the S&P 500 gaining +3.0%. The US 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 unwinding of Yen carry trades.
4. The market capitalization of AI agents grew by 322.2% in Q4 2024, from $4.8 billion to $15.4 billion
The AI agent category saw a rapid rise after the launch of GOAT on Solana in early October. Although the "Terminal of Truths" narrative around AI agent KOLs in the X prototype has largely faded, this 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 places with significant AI agent presence. 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 trading volume of the top 10 Ethereum Layer 2s grew by 48.3%, with Base accounting for 48.3% of the trading volume
Ethereum Layer 2s continued to grow in Q4 2024, with the top 10 Layer 2s reaching a daily average trading volume of 15 million transactions. The growth was primarily driven by Base, which saw its daily average trading 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. In Q4, 48.3% of the top 10 Layer 2 transactions occurred on Base.
Meanwhile, Taiko emerged as the second-largest and most active Layer 2, surpassing Arbitrum. Taiko accounted for 20.6% of the trading volume in Q4, ahead of Arbitrum's 13.7%. Taiko's trading 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 reached a new all-time high of $6.45 trillion, up 111.7% quarter-over-quarter
In the fourth quarter of 2024, the total spot trading volume of the top 10 centralized exchange (CEX) platforms reached $6.5 trillion, an increase of +111.7% quarter-on-quarter.
This was the first time the quarterly trading volume exceeded $6 trillion. The total trading volume of the top 10 CEXs in 2024 was $17.4 trillion, compared to $7.2 trillion in 2023.
BN maintained its dominant position, with a market share of 34.7% among the top 10 CEXs by the end of December. Notably, BN's trading volume surpassed the $1 trillion mark in December, the second time it 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 growth of +314.8%. With South Korea's declaration of a state of emergency on December 3, Upbit's trading volume surged. During this turbulent period, the daily average trading volume reached around $21 billion, six times its normal daily average.
Solana surpassed Ethereum to become the dominant chain for decentralized exchange (DEX) trading in the fourth quarter of 2024, accounting for over 30% of all transactions
In the fourth quarter of 2024, Solana became the dominant chain for decentralized exchange (DEX) trading, with a market share exceeding 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%. However, 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 to take the leading position 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 solution backed by Coinbase reached a 19.0% market share 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.
Link to the article: https://www.hellobtc.com/kp/du/01/5639.html
Source: https://www.coingecko.com/research/publications/2024-annual-crypto-report?utm_campaign=2024-annual-crypto-industry-report&utm_source=x&utm_medium=social
