The 12 months 2024 marked a turning level for the cryptocurrency market, characterised by important progress and key occasions that influenced the whole ecosystem. Based on the “2024 Annual Crypto Business Report” by CoinGecko, the market skilled exceptional enlargement, with the full capitalization reaching 3.91 trillion {dollars}, marking a rise of 97.7% in comparison with the earlier 12 months.
Coingecko report: progress of the crypto market capitalization
The report by CoinGecko reveals that within the fourth quarter of 2024, the cryptocurrency market capitalization elevated by 45.7%, including 1.07 trillion {dollars} and bringing the full to three.40 trillion {dollars}. This improve was partly attributed to the re-election of Donald Trump within the U.S. presidential elections, which triggered a mid-quarter rally. The height of three.91 trillion was reached in mid-December, adopted by a consolidation section. In parallel, the common every day buying and selling quantity within the fourth quarter was 200.7 billion {dollars}, with a rise of 128.2% in comparison with the third quarter.
Dominance of Bitcoin, efficiency of Ethereum and Solana
Bitcoin has strengthened its dominant place out there, representing 53.6% of the full capitalization. The worth of Bitcoin reached a brand new all-time excessive of 108,135 {dollars} on December 17, 2024, surpassing the earlier document of 69,000 {dollars} from November 2021.
This outcome has been supported by the approval of spot ETFs in america and by favorable macroeconomic insurance policies, comparable to rate of interest cuts by central banks.
Ethereum has continued to play a vital position within the cryptocurrency ecosystem, with a 48.3% improve in transactions on Layer 2 options within the fourth quarter. Particularly, the Base platform accounted for 48.3% of those transactions, highlighting a rising adoption of scalability options.
Nonetheless, Solana has surpassed Ethereum as the principle blockchain for buying and selling on decentralized exchanges (DEX), accounting for over 30% of all DEX transactions within the fourth quarter.
Development of AI brokers and buying and selling quantity on CEX
An rising sector in 2024 was that of synthetic intelligence (AI) brokers, whose market capitalization grew by 322.2% within the fourth quarter, rising from 4.8 billion to fifteen.4 billion {dollars}.
This development displays a rising curiosity within the integration of AI into the cryptocurrency ecosystem, opening new alternatives for modern functions.
Centralized exchanges (CEX) recorded a spot buying and selling quantity of 6.45 trillion {dollars} within the fourth quarter, with a rise of 111.7% in comparison with the earlier quarter, marking a brand new all-time excessive.
This information underscores the continuing relevance of CEX in facilitating entry and liquidity within the bull and bear cryptocurrency market.
Conclusion
The 12 months 2024 was a 12 months of progress and transformation for the cryptocurrency market, with Bitcoin consolidating its dominant place and new tendencies, such because the rise of AI brokers and the rising position of Solana in DEX buying and selling, which redefined the ecosystem.
The macroeconomic developments and technological improvements will proceed to affect the way forward for the sector, making it important to remain up to date on the most recent tendencies and evaluation.
For a extra detailed and in-depth view, it is suggested to seek the advice of the entire “2024 Annual Crypto Business Report” by CoinGecko.