2024 has proven to be a transformative year for the crypto market, marked by increased institutional participation, significant on-chain activity, and expanding adoption of blockchain. In this article, we take stock of the year 2024 for cryptocurrencies, using data to highlight the market's evolution and emerging opportunities.
Market Growth from 2023
The crypto market rebounded strongly throughout 2024, growing by double and even triple digits in primary metrics:
The total market cap surpassed the previous all-time high set in 2021, almost reaching $3.9 trillion by mid-December 2024. This recovery indicates enhanced interest in digital assets from both retail and institutional investors.
Beyond market capitalisation growth, the number of active users and the volume of transactions have also shown substantial increases. In fact, the number of crypto users almost doubled by mid-June compared to 2023.
These metrics point to healthy ecosystem utilisation and growing adoption across various sectors, suggesting that crypto is firmly establishing itself as a mainstream financial instrument.
Crypto ETF Launches and Institutional Flows
One of the most significant catalysts this year was the launch of Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs), with Bitcoin ETFs debuting in January 2024, and Ethereum ETFs following in July. These instruments have made it easier for traditional investors to gain exposure to crypto assets, driving substantial capital inflows into the market.
The total on-chain holdings of Bitcoin ETFs have grown to an estimated 1.1 million BTC, doubling from the start of the year. This growth highlights the increasing appetite from institutional investors seeking regulated and secure exposure to cryptocurrencies.
Major Companies Increasing Crypto Exposure
Major corporations, both within and beyond the crypto industry, have continued to increase their exposure to Bitcoin and other digital assets. A notable example is MicroStrategy, led by Michael Saylor, which has consistently doubled down on its Bitcoin holdings. By the end of 2024, the company had accumulated 439,000 BTC.
This trend reflects a growing belief among traditional companies that digital assets can serve as a hedge against macroeconomic uncertainties and offer long-term growth potential.
The Stablecoin Opportunity
Stablecoins remain a critical component of the crypto ecosystem, facilitating seamless on- and off-ramps and providing stability in trading between assets. In 2024, the total supply of stablecoins hit a record high of $187.5 billion, surpassing previous all-time highs. Additionally, transaction volumes and the number of transactions have both increased by over 30-40%:
Notably, stablecoin volumes have remained steady even during periods of market volatility, indicating strong use cases beyond speculative trading. Stablecoins are increasingly being used for payments, remittances, and cross-border transactions, further cementing their role in finances.
On-chain stablecoin transactions are predominantly processed by several blockchains: Tron, Ethereum, BNB Chain, and Solana. Meanwhile, Layer 2 (L2) chains such as Arbitrum and Base have seen significant growth in USDC volume and user activity. There are a handful of widely used stablecoins with different collateral. Read our article to learn more about the stablecoin types, leaders and promising players in this sector.
While centralised exchanges (CEXs) still process a larger share of stablecoin transactions, decentralised exchanges (DEXs) are gaining traction. The launch of USDtb by BlackRock and Ethena Labs has provided traditional funds with a regulated pathway to access DeFi, potentially driving more institutional inflows on-chain.
Stablecoin adoption has also surged in regions such as Latin America and Africa, with market sizes growing by 40-50%. These regions are increasingly turning to stablecoins for currency hedging and as a trustless means of preserving value. Companies like Tether and Circle are actively investing in these markets, launching educational programmes and expanding payment infrastructure.
On-Chain Activity and Sector Growth
On-chain activity has seen robust growth across various blockchain networks. L2 networks, including Base, Arbitrum, and Optimism, along with non-EVM chains such as Solana, recorded the highest net flows. Users are increasingly opting for these networks due to their lower costs and faster transaction speeds.
The fastest-growing sectors in 2024 were perpetual trading and decentralised exchanges, both experiencing over 150% growth in volume and a 2-3x increase in total value locked (TVL). The surge in memecoin trading, ignited by the Pump.fun initiative, drove trading volumes across platforms like Raydium Protocol and had trickle-down effects on other ecosystems.
The popularity of trading bots, such as Photon and BONKbot, has also soared. These bots continue to see high utilisation rates and rank among the top fee-generating protocols in the crypto space.
Opportunities for Further On-Chain Growth
Despite the progress made in 2024, there remains significant potential for further growth in on-chain activity. Currently, only an estimated 5-10% of crypto owners actively engage with on-chain services, leaving ample room for expansion.
One successful example of improving user engagement is TON Blockchain's mini-app ecosystem within Telegram, which has onboarded over 50 million users. By integrating blockchain services into familiar platforms and offering mobile-friendly interfaces, protocols can lower the barriers to entry and improve user retention.
Going forward, the focus on enhancing user experience and retention mechanisms will be crucial for driving protocol growth and boosting on-chain participation.
Conclusion
2024 has been an incredible year for the crypto industry, marked by significant milestones in market growth, institutional adoption, and technological advancements, with strong tailwinds carrying the market into 2025.
At DWF Ventures, we remain committed to supporting builders and innovators in this evolving landscape. Projects seeking collaboration, investment, or strategic guidance from the crypto venture capital (VC) institution, can reach out to DWF Ventures via our website.
Related Articles
DWF Ventures on the key market drivers: stablecoins, consumer crypto, DeFAI, AI x Crypto, and more
According to Foresight News, Ordiswap, a Bitcoin DeFi project, has announced its collaboration with
DeFi has been steadily gaining mindshare since Trump’s re-election in 2024