2024 End-Year Crypto Outlook
Revisiting the Game-Changers for Crypto
Topics discussed in the study:
This is a study created by BITmarkets’ team for the benefit of its wide community of clients, investors, traders and experts.
Dear valued clients,
We hope this message finds you well and thriving in a year of dynamic shifts within the cryptocurrency landscape. As we have approached the midpoint of 2024, we at BITmarkets are delighted to provide a detailed exposition of the major developments and revelations we have witnessed thus far, and to outline our anticipations for the remainder of the year.
The year 2024 began on a high note, bolstered by significant regulatory milestones, notably the U.S. approval of spot Bitcoin ETFs. This has driven significant inflows and complemented the consistently robust performance in the DeFi sector. The token sale market has also witnessed a resurgence, indicating strong investor interest in new crypto initiatives.
By March, the market had soared, with total market capitalization catapulting. This has sent Bitcoin to new record highs, which highlighted growing confidence in decentralized assets. After April’s cooling period, which allowed markets to stabilize, crypto participants witnessed price revitalizations in May after the SEC approved eight spot Ethereum ETFs, which signals that the maturing crypto market is embracing broader institutional participation.
Looking ahead, the rest of 2024 holds significant potential for Bitcoin and the wider cryptocurrency market. Following the highly anticipated Bitcoin halving event in April, the world’s largest cryptocurrency remained sturdy, and history suggests that Bitcoin is set to prosper further and thus, it is poised to keep representing the go-to digital asset for wealth preservation and growth.
The BITmarkets team is excited to share this end-year outlook to present the developments and revelations witnessed in the first half of 2024 in more detail, and to also lay the projections for what’s to come for this opportunity-packed realm.
We remain dedicated to providing you with strategic insights to navigate these changes effectively, and we thank you for your continued trust and partnership.
Ali Daylami
Head of Data Analytics
2024: The Year of Bitcoin’s Bright Shine
Bitcoin’s significant progress and resilience in the first half of 2024 underscores its potential for substantial growth and its role as the transformative force of the crypto market.
Bitcoin started the year strong, with high daily transaction volumes and significant institutional interest. Bitcoin is becoming increasingly viewed as a safe haven asset, demonstrating stability higher than many S&P 500 stocks, which evidences its role as a reliable store of value.
Bitcoin’s total value locked (TVL) continued to rise, driven by high accumulation rates from both large holders and small-time investors. Corporations like MicroStrategy continued to pile BTC, and the number of Bitcoin addresses, both small and large, increased significantly, indicating widespread adoption and confidence in the market.
March was the month where Bitcoin propelled to new all-time highs, hand-in-hand with the success of Bitcoin ETFs, evident as investment inflows reached $1 billion by the end of the month. Bitcoin exchange-traded products held over 1 million BTC, reflecting significant institutional investment and acceptance. This period saw a 19-day streak of inflows, which ended in mid-June.
In April, Bitcoin’s price approached its all-time highs, driven by increasing institutional adoption and the highly awaited halving event finally taking place, which reduced block rewards from 6.25 BTC to 3.125 BTC, and boosted market sentiment. Unlike previous halving events, Bitcoin’s price did not exhibit major bearish structures, maintaining a bullish outlook.
Bitcoin neared its all-time peaks in May, and the high traction generated by Bitcoin ETFs continued despite a price correction. The market saw a growing number of BTC addresses, both small-time and large, and Bitcoin whales continued to hold BTC. This accumulation and the increasing TVL indicated that a significant price breakout might be on the horizon.
Bitcoin-based NFTs performed exceptionally well, surpassing $4 billion in early June. This sector’s growth highlighted Bitcoin’s expanding use case beyond a store of value. Additionally, Bitcoin reached 1 billion transactions, showcasing its active use and transaction capability.
Bitcoin’s market sentiment remained positive, with analysts predicting further growth. The successful introduction of spot Bitcoin ETFs set a precedent for Ethereum ETFs, which could further boost crypto prices through increased acceptance and activity.
TOP 10 Game-Changers for Crypto Going Into 2025
Bitcoin ETFs: A Blockbuster Success
By providing regulated and accessible investment vehicles, Bitcoin exchange-traded funds have driven substantial institutional and retail participation, enhancing Bitcoin’s role as a mainstream financial asset.
The SEC approved several spot Bitcoin ETFs on January 10, 2024, allowing shares in Bitcoin holding trusts to be traded on SEC-regulated exchanges, significantly increasing accessibility for retail investors. Major firms such as BlackRock, Fidelity, and Grayscale launched their ETFs.
Following these approvals, Bitcoin experienced substantial market activity. Analysts from Standard Chartered predicted that the introduction of spot Bitcoin ETFs would drive BTC prices up by 165% by the end of 2024, potentially reaching $100,000.
Bitcoin reserves held by miners and exchanges dropped significantly, contributing to increased scarcity. The approval of Bitcoin ETFs was seen as a catalyst for this trend, as miners began hoarding more BTC in anticipation of higher future prices.
The Bitcoin halving event in April 2024, which reduced block rewards from 6.25 BTC to 3.125 BTC, further heightened market excitement. Historically, such events have led to significant price rallies due to the reduced supply of new Bitcoin entering the market.
The performance of newly launched Bitcoin ETFs showed promising results, with significant inflows and increased trading volumes. Analysts projected that these ETFs could grow the market to a staggering $100 billion over time.
Bitcoin ETFs continued to drive institutional adoption. The year 2024 could be a pivotal year for institutional investment in Bitcoin, bringing more stability and long-term growth to the cryptocurrency market.
By July 2024, ETF trading volumes reached $7.6 billion daily. Analysts continued to predict significant price gains for Bitcoin, driven by ongoing institutional adoption and reduced supply. These developments underscore the transformative impact of Bitcoin ETFs on the cryptocurrency market.
Ethereum: The Cornerstone of Crypto
Ethereum has undergone significant progress in 2024 in the form of technological upgrades, financial growth, and strategic initiatives. The platform’s continuous innovation and market adoption underline its potential as a main driver for the growth of the cryptocurrency industry.
Ethereum began the year with the revolutionary Dencun upgrade slated for deployment across its testnets. This upgrade aims to enhance Ethereum’s data storage capacity and reduce gas fees.
In February, Ethereum’s staking rate reached a record high with approximately 30 million ETH staked, accounting for over 24% of its total supply. This surge in staking indicated strong network participation and confidence in Ethereum’s Proof-of-Stake mechanism, countering fears of mass unstaking following the Shapella hard fork.
Ethereum’s earnings tripled in Q1 2024, reaching $370 million. This growth was driven by increased transaction costs as Ethereum’s price surged above $3,000. Despite high transaction fees, the network saw significant growth in usage, with a total transaction increase of 8.4% quarter-over-quarter and a rise in DeFi TVL to $55.9 billion.
Ethereum developers continued to work on major improvements in April. One of them intends to provide a direct link between the Ethereum Virtual Machine and the Beacon Chain, thus enhancing security and operational efficiency for protocols like liquid staking. Another focuses on optimizing data copying in smart contracts, which reduces gas fees and improves network performance.
In May, the anticipation around Ethereum spot ETFs intensified as the SEC continued to deliberate on multiple applications. The market looked forward to potential approvals that could significantly boost Ethereum’s adoption and price. Ethereum’s ongoing performance and resilience were evident in its consistent upward trajectory.
Positive market sentiment and new upgrades ensued in June have boosted the crypto analysts’ expectations for more growth for Ethereum as the network continued to expand its capabilities and integrate more efficient technologies.
Ethereum is poised for further growth with continuous improvements and strategic partnerships. The network’s advancements in scalability, efficiency, and security, along with the approval of spot ETFs, position Ethereum for a significant role in the crypto landscape for the rest of the year.
Sui: The DeFi Dynamo
Sui’s technological advancements, strategic integrations, and robust ecosystem growth throughout the first half of 2024 have contributed to its rapid ascent. Its valuable contributions to the DeFi and blockchain landscape underline its potential to drive substantial change in the space.
Sui started the year strong, becoming a top 10 DeFi blockchain with a total value locked surpassing $430 million. This rapid growth was driven by multiple Sui-based protocols and applications leveraging the platform’s strengths, such as fast transaction speeds and low fees.
In February, Sui was recognized as the Blockchain Solution of the Year at the AIBC Eurasia Awards, reflecting its rapid growth and significant impact on the blockchain industry. The award highlighted Sui’s advanced technology and the robust growth of its DeFi ecosystem, which had seen its TVL grow to over $600 million.
Sui saw a substantial inflow of $310 million a month later, overtaking other major blockchains like Aptos and Cardano. Additionally, Sui’s decentralized exchange volume surged to over $2.88 billion, highlighting the network’s growing DeFi activity.
At the Sui Basecamp 2024 event in April, new technologies such as Mysticeti and Enoki were introduced, further enhancing the network’s performance and appeal. These innovations are expected to boost transaction speeds and ease of integration for Web3 companies, cementing Sui’s position in the blockchain industry.
Sui’s TVL continued to grow, breaking the $500 million barrier in May of the year. The network’s growth was bolstered by the launch of new DeFi protocols and partnerships, including the integration of Banxa’s payment infrastructure, which increased access to Sui’s ecosystem globally.
June marked Sui’s partnership with Oracle Stork, which aims to provide faster pricing data across its ecosystem. This integration aims to enhance the efficiency and functionality of DeFi applications on the Sui blockchain, offering real-time pricing data for better trading and investment decisions.
Analysts noted that Sui’s continued innovations and strategic partnerships position it as a leader in the DeFi space. With its low transaction fees, high-speed performance, and growing ecosystem, Sui is set to further expand its influence in the blockchain sector.
Solana: The Trailblazing Blockchain
Solana illustrated impressive growth and resilience, positioning it as a significant player in the crypto ecosystem. The network’s increasing adoption, strong developer activity, and potential for institutional integration cemented its role as a game-changer in the digital asset realm.
Solana’s stablecoin transfer volume hit a record monthly high of $300 billion in January of 2024, driven by significant use of USD Coin (USDC) on the network. This highlights Solana’s growing role in the stablecoin market and its robust infrastructure for handling large transaction volumes.
In January, Solana reported having over 2,500 monthly active developers, reflecting a strong commitment from its developer community. This growth in development activity enhances the network’s capacity to innovate and expand its ecosystem.
Solana’s network activity surged in February, with its decentralized exchange volumes and nonfungible token transactions increasing significantly. The total value locked in Solana’s smart contracts reached a 16-month high, indicating robust demand for its DeFi and NFT platforms.
In March, the SOL token topped $150 amid rising interest from institutional investors and an increase in memecoin and DApp activity. This surge was fueled by high trading volumes and strong performance in decentralized applications, suggesting sustained interest and adoption.
Solana continued to attract institutional interest in April following the launch of PayPal’s USD stablecoin on the network. This partnership, along with others from major payment processors, highlights Solana’s potential for institutional adoption and its competitive edge in the blockchain world.
VanEck filed for a Solana ETF a month later, marking another significant step towards mainstream financial integration. The potential approval of a Solana ETF could further drive institutional interest and investment in the SOL token.
Following that milestone, Solana’s network metrics continued to show strong performance, with significant increases in total value locked and user activity across various decentralized applications during June. This growth supports Solana’s position as a leading blockchain platform and its potential to outpace competitors in terms of consumer applications.
By July, Solana’s TVL had reached the highest level since November 2022, marking a 208% increase during the first half of 2024. This achievement underscores the network’s ability to attract more activity and drive demand for SOL tokens.
Avalanche: Scaling New Heights
Avalanche remained committed to innovation and growth, solidifying its role as a key player in the blockchain industry. The platform’s increasing adoption, technological advancements, and strategic initiatives highlight its potential to drive significant changes in the crypto ecosystem.
Avalanche launched several key initiatives in January, including the Avalanche Community Grants Program with Gitcoin. This program aims to support new projects within the Avalanche ecosystem, fostering innovation and growth on the platform. Additionally, Avalanche partnered with Alipay+ D-store to power a Web3-enabled voucher program, enhancing revenue streams for merchants and integrating blockchain technology with traditional business models.
During the next month, the Avalanche Foundation announced the Memecoin Rush initiative to increase accessibility to community coins and introduce new liquidity strategies. This initiative reflects Avalanche’s commitment to expanding its DeFi and NFT sectors, which are essential components of its growing ecosystem.
In March, Kevin Sekniqi of Ava Labs outlined a detailed roadmap for Avalanche’s development throughout the year, focusing on consensus improvements, capacity upgrades, and deep code refactoring. These enhancements are aimed at reducing transaction finality times and increasing network efficiency, making Avalanche more competitive with other leading blockchains like Ethereum.
Avalanche had achieved substantial growth in key metrics a month later. The platform saw a 45% increase in DeFi total value locked, a 65% rise in average daily DEX volume, and a 43% jump in stablecoin market cap. These figures highlight Avalanche’s expanding influence and adoption in the DeFi space.
During May, The Graph expanded its data tools for Avalanche developers, further enhancing the platform’s capabilities for building decentralized applications. This integration is expected to facilitate more robust data querying and indexing, providing developers with essential tools for creating efficient and scalable DApps.
June saw the launch of Avalanche Vista, a significant upgrade anticipated to drive further interest in the platform. Despite some challenges, including underperformance in certain areas, the launch is expected to enhance Avalanche’s appeal to both developers and users, solidifying its position in the blockchain space.
By July 2024, Avalanche’s ongoing integration with popular DeFi platforms and its scalable infrastructure continued to position it as a strong contender in the blockchain sector. The platform’s unique consensus mechanism allows for high throughput without compromising decentralization, making it a preferred choice for many developers.
Cardano: Pioneering Sustainable Innovation
Cardano remains committed to creating a sustainable and scalable blockchain ecosystem. The platform’s increasing adoption, technological advancements, and strategic initiatives highlight its prolonged significance in the present and future of crypto.
Cardano started the year strong by unveiling several key updates, including advancements in smart contracts and decentralized applications. The first month of the year also saw a significant increase in ADA’s trading volume, reflecting growing investor confidence in the platform’s long-term potential.
Cardano’s ecosystem continued to expand, with the platform reaching a total value locked of $403 million in February. This milestone demonstrated Cardano’s growing influence in the DeFi space, attracting more developers and projects to its network.
In March, the Cardano network experienced a DDoS attack but successfully mitigated the impact, showcasing its resilience and robust security measures. This incident prompted developers to focus on enhancing the network’s defenses against similar future attacks.
Cardano’s founder, Charles Hoskinson, predicted significant growth for the network in April, emphasizing the importance of the Voltaire governance system and ongoing development activities. This positive outlook was supported by continuous upgrades and a growing number of active users and developers.
A month later, Cardano’s ADA token experienced a price surge, with predictions suggesting it might reach up to $0.63 during Q2 of 2024. This rise was attributed to increasing adoption and positive market sentiment.
The platform continued to gain momentum as institutional investors showed interest in Cardano’s potential, particularly with the approval of alternative cryptocurrency ETFs. This interest was expected to drive further capital inflows and enhance ADA’s market position.
During early July, Cardano’s network metrics indicated a stable and growing ecosystem, with a significant rise in the number of new wallets and active daily addresses. The ongoing development and community engagement efforts positioned Cardano for continued growth and innovation.
BTMT: Major Developments & Achievements
These developments highlight BTMT’s emergence as a groundbreaking force in the cryptocurrency market, driven by its unique benefits, strategic integrations, and commitment to sustainability.
BITmarkets Token (BTMT) began the year by continuing to build on its significant momentum from the previous year. This was highlighted by a 400% price surge during its public sale phase, indicating strong investor confidence and market interest.
BTMT’s integration into the BITmarkets platform saw further enhancements with the introduction of the BTMT Earn service in March. This program allows users to lock up their BTMT holdings to earn guaranteed interest, providing an attractive option for those seeking to generate passive income.
In March, BTMT was officially listed on the BITmarkets exchange, marking its entry into the public trading arena. This listing exposed the token to market dynamics driven by supply and demand, paving the way for potential growth and increased trading activity. The listing also coincided with the launch of BTMT Earn, further integrating BTMT into the BITmarkets ecosystem and enhancing its utility and appeal.
BTMT’s utility as a digital asset continued to grow with the introduction of new features and benefits on the BITmarkets platform. The token’s unique benefits, such as ultra-low trading fees and exclusive support, continue to position it for further growth and adoption in the evolving crypto landscape.
Ripple: Global Financial Partner
Ripple remains adamant on global expansion, capitalizing on its seasoned expertise within the cryptocurrency industry by bolstering its legal compliance and utility in various regions of the world.
Ripple continued to tap into international waters, acquiring a payment license in Singapore early in the year. This enhanced its regulatory compliance and boosted its credibility in the Asian market. This strategic move expanded Ripple’s reach and bolstered its role in facilitating international transactions.
Ripple’s acquisition of a payment license was followed by a DDoS attack on its network in March, which was successfully mitigated. This incident underscored Ripple’s robust security measures and resilience.
Ripple’s technology was selected to power Georgia’s Central Bank Digital Currency (CBDC) in April, showcasing its advanced capabilities and trust within governmental financial institutions. This partnership highlighted the growing acceptance of blockchain technology in mainstream finance.
XRP maintained a bullish outlook despite market volatility. This stability and potential for growth were bolstered by Ripple’s ongoing developments and partnerships.
PayPal: Revolutionizing Crypto Payments
PayPal’s strategic expansions and innovations reinforced its position as a pivotal force in the crypto and digital payments industry. The company’s continuous efforts in enhancing user experiences, regulatory compliance, and technological advancements underscore its potential to drive significant changes in the global financial landscape.
PayPal began the year with its “First Look” keynote on January 25, unveiling six new innovations designed to revolutionize commerce through AI-driven personalization. This initiative underscores PayPal’s commitment to leveraging technology to enhance user experiences and streamline digital transactions.
PayPal supported Celsius creditors in April by enabling them to access their cryptocurrency distributions through PayPal and Venmo. This move highlighted PayPal’s role in providing cryptocurrency services and its dedication to integrating traditional finance with digital currencies.
PayPal Ventures invested in SingleInterface during April, a leader in the hyperlocal marketing-to-commerce software sector. This investment is part of PayPal’s strategy to support innovative companies that align with its digital payments and financial services goals.
Analysts described 2024 as a transition year for PayPal, with expectations of the stock remaining range-bound due to valuation concerns. Despite these concerns, PayPal’s strong brand and strategic investments position it for long-term growth, focusing on next-gen consumer checkout solutions and improving margins in its Braintree business.
Marathon Digital: Leading the Mining Revolution
Marathon Digital kickstarted 2024 by closing the acquisition of two Bitcoin mining sites for $178.6 million. This acquisition increased Marathon’s total capacity to approximately 910 megawatts, positioning it for further expansion and operational efficiency improvements.
The company then increased its operating fleet by 8%, energizing approximately 16,000 additional Bitcoin miners. This expansion underscored Marathon’s commitment to scaling its operations and enhancing its mining capabilities.
Marathon’s expansion continued with the reinstallation of 9,000 miners at the Ellendale facility, bringing its total operational fleet to approximately 246,000 Bitcoin miners. This increased the company’s theoretical production capacity to 30.6 EH/s, with 237,000 miners fully operational.
Marathon Digital plans to further increase its hash rate target to 50 EH/s within the next 18—24 months. This ambitious goal reflects its long-term vision and commitment to becoming a leading player in the Bitcoin mining industry.
These developments highlight Marathon Digital’s significant growth and strategic expansions in 2024. The company’s ability to scale its operations, maintain environmental responsibility, and navigate market challenges positions it as a key player in the cryptocurrency mining sector.
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Bibliography
Aka, A. (2024). Charles Hoskinson Predicts Remarkable Growth for Cardano (ADA) in 2024. Time Tabloid. Available at: https://timestabloid.com/charles-hoskinson-predicts-remarkable-growth-for-cardano-in-2024/
Altcoin Buzz. (2024). Sui Enters Top 10 Blockchains with DEX Volume Surge. Available at: https://www.altcoinbuzz.io/cryptocurrency-news/sui-enters-top-10-blockchains-with-dex-volume-surge/
Ashraf, A. (2024). Bitcoin Miner Marathon Mined $15M Worth Kaspa Tokens to Diversify Revenue. CoinDesk. Available at: https://www.coindesk.com/business/2024/06/26/bitcoin-miner-marathon-mined-15m-kaspa-tokens-to-diversify-revenue/
