The cryptocurrency sector has entered a new phase of maturity in 2024, with over 400 million wallets having a positive balance, notes a new report by Chainalysis.
“When we examine the progress of the crypto ecosystem, it is clear that we’re experiencing a seismic shift in both perception and usage,” says the report.
“Though one wallet does not imply one user, as institutions and individuals can manage multiple wallets, the sheer volume of growth suggests that cryptocurrency adoption is steadily growing.”
Bitcoin (BTC) achieved all-time highs (ATH) several times in 2024, notably climbing above $70,000 in March 2024 and again in December 2024, surpassing $100,000.
MILESTONE | #Bitcoin Surpasses the $100,000 Mark for the First Time in History
Since the start of 2024, Bitcoin is up by over 120% and by over 50% in the last one month since the election victory of U.S. President Donald Trump.https://t.co/Zc1PC4lDbM #Bitcoin100K pic.twitter.com/GnJYFtHqS4
— BitKE (@BitcoinKE) December 5, 2024
Furthermore, transfer activity across all digital assets has surpassed the previous peaks of late 2020 and 2021, highlighting that this market cycle has been considerably more dynamic than the previous bull run.
At the same time, the decentralized finance (DeFi) sector, which reached record levels of activity between 2021 and 2022 has neared those levels again.
Stablecoins however have emerged as an important use-case, particularly in emerging markets, stealing the headlines from the likes of Bitcoin and Ethereum. According to Chainalysis, stablecoins have outpaced all other types of cryptocurrencies in adoption, accounting for over half – and in some cases up to 75% – of recent on-chain transaction volumes.
The other major sector driving adoption took off in 2024, with the launch of BTC and ETH ETFs.
🇺🇸 MILESTONE | ‘We Do not Approve Nor Endorse Bitcoin,’ Says United States SEC as it Approves 11 Spot #Bitcoin ETFs
This development represents a historic milestone in the integration of Bitcoin into traditional financial markets.
Below are the 11 approved products.… pic.twitter.com/Zn41cG9Ji0
— BitKE (@BitcoinKE) January 11, 2024
According to Chainalysis, daily Bitcoin ETF volumes have soared, nearing $10 billion in March 2024. Additionally, BTC ETF flows are surpassing those of the first net gold ETF from its 2005 launch positioning it as the fastest-growing ETF in history.
Indeed, the price of BTC started climbing shortly after news of the Bitcoin ETF approval was announced on January 10, 2024 with trading commencing soon thereafter.
Going forward, another sector to watch out for is the Real World Assets (RWA), tangible or intangible assets that derive value outside of the blockchain.
According to data compiled by asset management firm 21.co, the market capitalization of tokenization projects has collectively exceeded $100 billion.
“While still in its early stages, the emerging relevance of RWAs is a major step toward a future where the majority of value transfer occurs on the blockchain, fostering a unified, open, and less frictional global market.”
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