There is no doubt that the cryptocurrency industry will see tremendous growth in 2024, with leading cryptocurrency Bitcoin continuing to lead the market. Data indicates that the overall market value of the cryptocurrency industry has doubled over the past year.
While it has been difficult to find a common theme for how the market will improve in 2024, it is easy to point to different aspects of growth in the digital asset industry this year. A prominent blockchain company has identified five trends that reflect the transformation the cryptocurrency market has witnessed over the past 12 months.
5 Cryptocurrency Trends in 2024
In its latest weekly report, market intelligence platform IntoTheBlock He explained The five main on-chain trends that reflect the growth of the cryptocurrency industry in the past year. All (or most) of them have been fireworks for the digital asset market, specifically Bitcoin, in 2024.
First, IntoTheBlock noted the growing growth and dominance of Bitcoin in the cryptocurrency market, especially after the approval of spot exchange-traded funds in the US. As a result, the market share of the leading cryptocurrency reached its highest level in more than three and a half years.
The cryptocurrency analytics firm highlighted that Trump’s success in the presidential election also played a role in driving up the value of Bitcoin. Overall, Bitcoin dominance has now gone from less than 50% to 59% year-to-date.
Like Bitcoin, the meme market also saw unprecedented growth in 2024, with the total market capitalization rising by more than 400%. IntoTheBlock specifically mentioned the introduction of the Solana-based Pump.fun launcher, which catalyzed the meme coin explosion in the Solana ecosystem.
Source: IntoTheBlock
However, this meme trend on the Solana network has left a negative impact on the Ethereum ecosystem and ETH price performance in 2024. With meme coins turning to Solana and non-fungible tokens (NFTs) not making a strong return in this bull cycle, there has been Lower Ethereum network fees, resulting in less Ethereum being burned.
Furthermore, decentralized finance (DeFi) saw a rebound in 2024, as new capital flowed into various protocols and projects. As less value is lost due to hacks and exploits and less regulatory pressure in 2024, the total market cap of the DeFi sector has reached its highest levels since early 2022.
Finally, IntoTheBlock noted that new projects that pioneered during the recent bear market saw notable growth in 2024. For example, rebuilding projects and underlying trading protocols were highlights in the cryptocurrency space last year.
The total market capitalization of cryptocurrencies
As of this writing, the total market cap of cryptocurrencies is approximately $3.49 trillion. According to TradingView data, the market capitalization of cryptocurrencies has increased by more than 105% year-to-date.
The total cryptocurrency market capitalization at $3.3 trillion | Source: daily TOTAL chart on TradingView
Featured image from Pexels, chart from TradingView
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