2024 Crypto Assets Market Review: Bull Run Resumes, Bitcoin Hits New Highs

In 2024, the Crypto Assets market welcomed the beginning of the fourth bull run. Bitcoin celebrated its 15th anniversary with its fourth halving, while being driven by multiple favorable factors, including the U.S. approval of spot ETFs, central bank interest rate cuts, and Trump's re-election. These changes have made Crypto Assets the focus of the market again, and the launch of ETFs has provided new channels for capital inflow.

Bitcoin reached an all-time high of $108,135 on December 17, pushing the total market capitalization of Crypto Assets to a new record of $3.91 trillion. This report provides a comprehensive analysis of the crypto industry in 2024, covering market landscape, performance of Bitcoin and Ethereum, development of the DeFi and NFT ecosystems, as well as the status of centralized and decentralized trading platforms.

Here are the seven major highlights of the crypto industry in 2024:

1. In the fourth quarter of 2024, the total market value of the Crypto Assets market increased by 45.7%, reaching $3.91 trillion, a year-on-year growth of 97.7%.

2. The dominant position of Bitcoin in the market has further increased, accounting for 53.6% of the total market value of Crypto Assets.

3. Bitcoin's performance in 2024 for the entire year and the fourth quarter exceeds that of major asset classes.

4. The market value of AI agents is expected to grow by 322.2% in the fourth quarter of 2024, rising from 4.8 billion dollars to 15.4 billion dollars.

5. In the fourth quarter of 2024, the trading volume of the top ten Ethereum Layer 2 solutions increased by 48.3%, with Base accounting for 48.3% of the market share.

6. In the fourth quarter of 2024, the centralized trading platform's spot trading volume reached $6.45 trillion, a quarter-on-quarter increase of 111.7%, setting a new historical high.

7. In the fourth quarter of 2024, Solana surpassed Ethereum to become the dominant chain for DEX trading, accounting for over 30%.

1. The total market capitalization of Crypto Assets has grown significantly

In the fourth quarter of 2024, the total market capitalization of Crypto Assets increased by 45.7% (1.07 trillion USD), ultimately closing at 3.40 trillion USD. Although market momentum weakened in the third quarter, the market rebounded in the middle of the fourth quarter, especially after Trump won the US presidential election.

In 2024, the total market capitalization of the Crypto Assets market nearly doubled, growing by 97.7%. The market cap reached an all-time high of $3.91 trillion in mid-December, before falling back to $3.40 trillion. The average daily trading volume in the fourth quarter of 2024 was $200.7 billion, an increase of 128.2% compared to $88 billion in the third quarter.

2. Bitcoin market share continues to rise

The market share of Bitcoin (BTC) continued to grow slightly by 0.9% in the fourth quarter of 2024. XRP performed outstandingly, with its market share rising to 3.5% (an increase of 2.0%), jumping from 7th to 4th place, surpassing BNB and Solana (SOL).

Dogecoin (DOGE) has become the new coin ranked 7th in market capitalization, replacing USDC. This is the first time USDC has fallen out of the top 7 since April 2021. Ethereum (ETH) market share continued to decline in the fourth quarter, dropping from 13.4% in the third quarter to 11.8%, marking a new low since April 2021.

3. Bitcoin Outperforms Major Asset Classes

The fourth quarter of 2024 is a milestone quarter for Bitcoin (BTC), breaking the $100,000 mark for the first time, reaching a peak of $108,135 on December 9, followed by a slight pullback, closing the year at $93,508, with a total annual increase of 121.5%.

The Bitcoin rally started from a low of $54,000 in the third quarter, with another significant surge following Trump's election victory. Expectations of interest rate cuts by the Federal Reserve and anticipated monetary easing policies in 2025 further supported the rally.

The average daily trading volume in the fourth quarter soared from 31.1 billion USD in the third quarter to 62.6 billion USD, an increase of 101.3% month-on-month. When Bitcoin broke 100,000 USD on December 6, the spot trading volume exceeded 190 billion USD, setting a new annual high.

The stock market performed strongly in the fourth quarter, with the Nasdaq Index rising by 8.0% and the S&P 500 Index rising by 3.0%. The US Dollar Index increased by 7.0%, primarily driven by the depreciation of other major currencies. The Japanese Yen performed the worst, declining by 8.0% in the fourth quarter.

4. AI agent market cap significantly increases

The AI agent category rapidly emerged after GOAT went live on Solana in early October. In the fourth quarter of 2024, the market value of AI agents grew by 322.2%, from $4.8 billion to $15.5 billion.

Currently, Solana and Base are the only blockchains with significant AI agents present. By the end of 2024, Base captured some market share through projects like AIXBT and Virtuals Protocol (VIRTUAL). However, Solana began to regain some market share after launching GRIFFAIN and AI Rig Complex (ARC) at the end of December.

5. Ethereum Layer 2 trading volume has seen significant growth

In the fourth quarter of 2024, Ethereum Layer 2 continues to grow, with the top ten Layer 2 daily transaction volumes reaching 15 million. Base has driven the increase in transaction volume, with an average daily transaction volume of 7.2 million in the fourth quarter, a 78.7% increase from 4 million in the third quarter. In contrast, the Ethereum mainnet had an average daily transaction volume of about 1.2 million in the fourth quarter. Base accounted for 48.3% of the transactions in the top ten Layer 2.

Taiko has become the second most active Layer 2, surpassing Arbitrum, with a 20.6% market share in the fourth quarter, leading Arbitrum's 13.7%. Taiko's trading volume has increased by 85.5% month-over-month, while Arbitrum only grew by 14.0%. The growth of Taiko is mainly attributed to several DeFi protocols launching on this new chain.

6. Centralized Exchange Trading Volume Hits New Highs

In the fourth quarter of 2024, the top ten centralized exchanges (CEX) spot trading volume reached $6.5 trillion, a quarter-on-quarter increase of 111.7%, surpassing the $6 trillion mark for the first time. The total trading volume for the entire year of 2024 is $17.4 trillion, compared to $7.2 trillion in 2023.

A certain trading platform continues to maintain its leading position, with a market share of 34.7% among the top ten CEXs by the end of December. The platform's trading volume in December exceeded $1 trillion, marking the second time in 2024 that it has reached this milestone.

Upbit is the fastest-growing CEX in the fourth quarter, with trading volume increasing from $135.5 billion to $561.9 billion, a quarter-on-quarter growth of 314.8%. After South Korea announced a curfew on December 3, Upbit's trading volume surged, with an average daily trading volume reaching about $21 billion, which is six times its usual level.

7. Solana Becomes the Dominant Chain for DEX Trading

In the fourth quarter of 2024, Solana became the dominant chain for decentralized exchange (DEX) trading, with a market share exceeding 30%. The trading volume on Solana reached $219.2 billion, a quarter-on-quarter increase of 152.0%. Ethereum's trading volume was $184.3 billion, with a market share ranging between 25% and 28%. For the entire year, Ethereum still led Solana, accounting for 33.5% of DEX trading volume, while Solana accounted for 25.2%.

Base surpassed Arbitrum in the fourth quarter, with a market share exceeding 14%, while Arbitrum remained between 10% and 11%. Base reached a market share of 19.0% in December, with a quarter-on-quarter growth of 206.5%. Base's trading volume was $116.7 billion, while Arbitrum's was $79.2 billion.

Tron is the fastest growing among the top ten chains, with a month-on-month growth of 232.7%, and the trading volume increased from 2.9 billion dollars in the third quarter to 9.6 billion dollars in the fourth quarter. By December 2024, Tron's market share will be 2.1%, making it the sixth largest chain.