Key indicators such as adoption, transaction volume, and activity levels have reached new highs in 2024, giving blockchain technology a major boost. Despite ongoing regulatory hurdles, blockchain technology is thriving, as evidenced by this increase.
Blockchain The networks have proven their ability to thrive and are moving toward wider use, even as regulators closely monitor the industry.
Cross-chain transactions have reached new heights
However, the most notable achievement achieved by blockchain technology in 2024 has been the volume of transactions. In December, the value of cross-chain trades reached $817 million, well above the previous record of $730 million in January 2022. This means that the development has raised a staggering annual run rate of $10 trillion.
Frederik Haga, CEO of Dune Analytics, said the number of transactions showed that activity levels were similar to the peak in 2021. This shows that blockchain is becoming more important in the global banking system.
Okay, prices are up, but what will actual onchain adoption look like in 2024!? Let’s take a look at the data 👇
In 2024, Unchain adoption has reached 2021 levels while also exceeding previous highs in terms of transfer volume and number of transactions!
Onchain adoption in general – almost… pic.twitter.com/IImeJjNtIj
— hagaetc.eth (@hagaetc) January 2, 2025
Low transaction fees lead to its adoption
Another significant change in 2024 was the sharp decline in blockchain transaction fees. Transaction costs fell from $2 billion in November 2021 to $500 million by December 2024.
This decline removes a major barrier to the adoption of blockchain technology in all walks of life, such as individuals and businesses. This can make blockchain more viable and scalable as transactions are cheap and thus make their way towards many applications spanning various industries.
Organizational challenges during rapid growth
Blockchain networks have experienced exceptional growth while navigating a difficult regulatory context. While popularity has risen, the industry has faced increased scrutiny, especially regarding decentralized finance (DeFi) and Cryptocurrencies.
Regardless of some expected problems and issues, the cross-chain industry still continues to follow decentralized structures, however, expanding the role that blockchain has played in the global economy.
In 2024, a significant event occurred – the approval of the Spot Bitcoin ETF by the US Securities and Exchange Commission – which provided the broader cryptocurrency market with great enthusiasm and optimism. This gave legitimacy to Bitcoin and most other leading cryptocurrencies, thus bringing huge institutional investment into the digital market.
By January 2024, Bitcoin ETFs had received more than $35 billion in net inflows. BlackRock’s IBIT Lead the way.
In addition to these market events, Donald Trump’s victory in November revived regulatory hope for cryptocurrencies once again. His promises to make the US the “crypto capital of the planet” and his pledge for clearer regulations have further boosted market sentiment.
By December, Bitcoin’s price had reached an all-time high of $108,135, contributing to the total cryptocurrency market cap of $108,135. $3.9 trillion As of that time, up from $1.7 trillion at the start of 2018.
Featured image from Tech Xplore, chart from TradingView