George Miller
The year 2024 marked a pivotal moment for the cryptocurrency sector, showcasing impressive achievements and unprecedented peak values. Compared to previous years, it was a favorable year overall. Bitcoin reached remarkable levels, stablecoins enjoyed considerable growth, and the entire market capitalization soared to $3.91 trillion.
Additionally, unexpected events unfolded, such as Solana surpassing Ethereum in decentralized exchange (DEX) trading. Surprised? Well, no more spoilers to reveal!
Bobby Ong, COO of CoinGecko, remarked: “2024 represented a significant evolution in the crypto landscape, demonstrating advancements in gaining acceptance from traditional finance and institutional players. Concurrently, blockchain competition intensified as various ecosystems vied for developers and users, with discussions revolving around memecoins and the integration of AI in crypto. Following a stretch of tough years, we are optimistic about the bullish market prospects in 2025!”
Now, let’s explore the key insights from CoinGecko’s 2024 Annual Crypto Industry Report.
Key Insights
- The cryptocurrency market capitalization increased by 45.7% in Q4 2024, nearly doubling throughout the year, reaching $3.91 trillion.
- Bitcoin’s market share expanded to 53.6%, while Ethereum’s share diminished to 11.8%, its lowest point since 2021.
- The stablecoin market capitalization soared to a record $201.6 billion in Q4 2024, with significant contributions from USDT and USDC.
- Bitcoin experienced an impressive 121.5% price increase in 2024, surpassing $108,000 and outshining other conventional asset classes.
- The AI agents sector witnessed staggering growth, escalating by 322.2% in Q4 2024, mainly driven by new initiatives on Solana and Base.
- Ethereum Layer 2 transactions surged by 48.3% in Q4 2024, with Base accounting for a substantial share of the activity.
- Centralized exchange spot trading volumes reached a historic $6.45 trillion in Q4 2024, reflecting a 111.7% rise from the prior quarter.
- In Q4 2024, Solana surpassed Ethereum to become the leading platform for DEX trading, securing over 30% market share.
- Decentralized perpetual contracts experienced a 104% rise in open interest, reaching $6.7 billion by the end of 2024.
1. Crypto Market Cap Increased 45.7% in Q4 2024, Hitting $3.91T
The overall cryptocurrency market capitalization jumped by 45.7% ($1.07 trillion) in Q4 2024, concluding at $3.40 trillion. After a slowdown in Q3, the market rebounded in mid-Q4, primarily spurred by Donald Trump’s successful US Presidential campaign.
For the year, the market capitalization nearly doubled (+97.7%), peaking at $3.91 trillion in December before stabilizing. The average trading volume during Q4 reached $200.7 billion, a 128.2% increase compared to Q3’s $88.0 billion.
2. Bitcoin Market Share Rises to 53.6% as Ethereum Falls to 11.8%
In Q4 2024, Bitcoin’s market share increased to 53.6%, marking a 0.9% rise. XRP saw a significant leap to 3.5% (+2.0%), moving up from the seventh to the fourth position, surpassing both BNB and Solana.
Dogecoin entered the top seven cryptocurrencies by market capitalization, taking the place of USDC, which fell out for the first time since April 2021. In contrast, Ethereum’s market share declined to 11.8%, its lowest level since April 2021.
3. Stablecoin Market Cap Reached $201.6B in Q4 2024, an Increase of 18.4%
The total market capitalization of stablecoins increased by $31 billion (+18.4%) in Q4 2024, reaching an all-time high of $201.6 billion. The growth was primarily driven by USDT (+$17.8 billion, +14.9%) and USDC (+$8.3 billion, +23.5%). USDe also showed strong performance with a remarkable percentage increase (+$3.3 billion, +131.4%), climbing to be the third largest stablecoin by market cap, surpassing DAI/USDS and FDUSD.
Highlighted gains were seen with USDO (+512.8%, +$1.4 billion) and USDX (+199.5%, +$358.4 million). Conversely, PYUSD experienced the largest decline (-29.3%, -$206.7 million).
4. Bitcoin Rose by 121.5% in 2024, Exceeding Key Asset Classes
In 2024, Bitcoin (BTC) achieved remarkable success, surging past $100,000 on December 9 and peaking at $108,135 before closing the year at $93,508 (+121.5%). The rally was fueled by Trump’s election win, coupled with Federal Reserve rate reductions and ongoing expectations for monetary easing.
Trading volume saw a considerable increase, averaging $62.6 billion in Q4 (+101.3% QoQ), with a record $190 billion on December 6 as BTC surged over the $100,000 mark.
In comparison, Q4 performances for traditional equities included +8.0% for the NASDAQ and +3.0% for the S&P 500, while the US Dollar Index increased by +7.0%, against a -8.0% fall for the Yen, nullifying carry trade profits.
5. AI Agents Sector Soars 322.2% to $15.5B in Q4 2024
The market for AI agents experienced phenomenal growth in Q4 2024, with its value skyrocketing from $4.8 billion to $15.5 billion (+322.2%), following the launch of GOAT on the Solana platform in October.
Prominent AI agents are notably present on Solana and Base. Base saw considerable market share growth late in 2024, with initiatives like AIXBT and Virtuals Protocol (VIRTUAL), while Solana started recovering with the introduction of GRIFFAIN and AI Rig Complex (ARC) in December.
6. Ethereum Layer 2 Transactions Rise 48.3% in Q4 2024, With Base Dominating at 48.3%
In the last quarter of 2024, daily transactions on the leading 10 Ethereum Layer 2 platforms reached an average of 15 million, marking an increase of 48.3%. Base was the standout performer, with 7.2 million daily transactions—an impressive 78.7% growth compared to the previous quarter—making up 48.3% of the entire Layer 2 sector. In contrast, Ethereum’s main network handled approximately 1.2 million daily transactions.
Taiko has emerged as the second most active Layer 2 platform, securing 20.6% of the transaction market share after experiencing an 85.5% quarter-on-quarter growth. Meanwhile, Arbitrum accounted for 13.7% of the total transactions, which was a more modest growth of 14.0%. Taiko’s notable rise was largely driven by the launch of several decentralized finance (DeFi) protocols.
7. CEX Spot Trading Volume Reaches Record $6.45T in Q4 2024, Up 111.7% QoQ
Spot trading activity on the top 10 centralized exchanges hit a record $6.45 trillion in Q4 2024, a staggering increase of 111.7% over the previous quarter, making it the first instance where trading exceeded $6 trillion. For the entire year, trading volume reached $17.4 trillion, significantly up from $7.2 trillion in 2023.
Binance led the exchange arena, finishing December with a 34.7% market share and exceeding $1 trillion in monthly volume for the second time within the year.
Upbit experienced the highest growth among centralized exchanges, with a 314.8% volume increase to $561.9 billion, following South Korea’s declaration of martial law in December. This event pushed daily trading activity to around $21 billion from an earlier average of $3.5 billion.
8. Solana Emerges as Top Chain for DEX Trading with 30%+ Share in Q4 2024
For the first time, Solana overtook Ethereum as the premier blockchain for decentralized exchange (DEX) trading in Q4 2024, capturing over 30% of the market share with $219.2 billion in volume, reflecting a growth of 152.0%. Ethereum followed with a DEX trading volume of $184.3 billion, retaining a 25% to 28% market dominance during the quarter, but still led the yearly totals with 33.5% compared to Solana’s 25.2% share.
Base also outperformed Arbitrum in Q4, achieving a 19.0% share in December with a trading volume of $116.7 billion, marking an impressive growth of 206.5%. Tron demonstrated the fastest growth among chains, with a trading volume leap of 232.7% quarter-on-quarter, reaching $9.6 billion, and earning it the sixth position with a 2.1% market share.
9. Decentralized Perpetuals Open Interest Soars 104% to $6.7B in 2024
The open interest in the leading decentralized perpetual trading protocols saw a significant jump of 104.3% in 2024, climbing to $6.7 billion by December, driven by strong market confidence.
By year’s end, Hyperliquid became the dominant entity in the space, controlling 66.2% of the total open interest, up from just 7.7% at the start of the year. In contrast, dYdX and GMX witnessed a decline in their market shares.
The five leading protocols—Hyperliquid, Jupiter, dYdX, GMX, and Drift—now represent over 97% of the market, indicating a consolidation trend and maturation within the industry.
Final Thoughts
The cryptocurrency landscape is evolving rapidly, presenting both fresh opportunities and new challenges. Whether you are a seasoned investor or simply observing the market, keeping abreast of these developments is crucial.
As the year concludes and we reflect on the insights from the CoinGecko report, leverage this information wisely. Wishing you success as we enter another dynamic year in the crypto realm!
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