The crypto politics that shaped recent years came to an abrupt end in July, when Donald Trump took the stage at the Bitcoin Conference in Nashville. His speech was bold, fresh, and revolutionary. Proclaiming a new course for revival, he broke the mold of traditional politics and was welcomed with open arms by the crypto community. Companies like Ripple and Holiverse, led by CEO Lado Okhotnikov, saw a glimmer of hope. The members of the crypto industry longed for days where innovation might finally outpace regulation.
But Trump wasn’t in power yet, and the path to the Oval Office remained long. Though his rivals weren’t strong, they held the reins of control, keeping the system on its pre-charted course. Therefore, some of the crypto trends of 2024 align with previous US policies such as the CBDC trend. Let us explore them.
CBDCs: A Debate on Privacy and Power
The theme of Central Bank Digital Currencies (CBDCs) continued to dominate headlines in 2024. The global interest in CBDCs is still strong. Some central banks in large economies dedicate considerable resources to promote the idea. Around 130 countries methodically explore this possibility. The idea seems alluring for governments, which plan to introduce the asset to modernize payments, boost financial inclusion, and enhance cross-border trade efficiency.
However, the development of this direction faced significant opposition in the face of Donald Trump, who started to criticize the project during the elections. In particular, he cited concerns about privacy and national sovereignty. CBDCs can easily become tools for government surveillance and control for their transparency. He pledged to ban their implementation if elected and remained true to his word. Trump fulfilled this promise early in his presidency and rejected that direction.
Unprecedented Bitcoin Resurgence
The Bitcoin network processed a staggering $19 trillion in transactions in 2024. The figure includes payments, transfers, and trading activity. This figure more than doubled compared to the $8.7 trillion recorded in 2023, reflecting the network’s maturity in handling large transaction volumes without major disruptions. Increased Bitcoin adoption and growing institutional involvement further highlight the positive market sentiment.
The year has been marked by an unprecedented Bitcoin resurgence which is natural after Donald Trump endorsed the first cryptocurrency. There in Nashville he promised to make Bitcoin a reserve currency for the United States. As a result, BTC reached its all-time high over $100,000 by the end of the year.
2024: Year of Stablecoins
In 2024, stablecoins strengthened their position and even assumed the role of the critical component of the cryptocurrency industry. The volatility of digital assets make people look for stability, so assets with a set price meet this demand. The market cap of stables surpassed $200 billion. Tether is an absolute leader here (market cap $128 billion at the time of writing) followed by Circle (over $37 million), Paxos and MakerDAO.
Several U.S. companies, including Visa and Stripe, are entering the stablecoin market. PayPal has already launched its own stablecoin, and Revolut has plans to do the same. This is a lucrative business because stablecoin issuers can invest the reserves backing their coins in short-term U.S. government bonds, which yield attractive returns.
The rise of AI agents: a Game Changer for Crypto Trading
In Q4 2024 AI agents suddenly surged. Their market cap surged by 220% and surpassed $15 billion following the increasing adoption and investment in AI projects. AI agents become irreplaceable, automating minor tasks, tracking market trends, predicting trends and executing trades. All these make cryptocurrency trading more efficient.
AI agents are not just a fad but an absolutely different approach to the development of decentralized finance. These tools are enhancing blockchain technologies, particularly DeFi.
The Evolution of DeFi: Hyperliquid, Raydium and Holiverse making waves in the market
The DeFi market has grown considerably in 2024. Its total value locked (TVL) increased by 120%. The market cap is estimated at approximately $30 billion with the huge potential for growth. It’s expected to reach $42 billion within a year. This explosive growth has been fueled by a combination of factors, including those described above: the rise of AI agents. Other factors include:
RWA. The integration of Real-World Assets (RWA) into the DeFi ecosystem contributes to its growth. RWAs bring real-world collateral, such as real estate, commodities, or bonds, into decentralized finance. This bridges the gap between traditional and digital finance and increases the stability and credibility of DeFi protocols. In line with this growth, Holiverse has also taken a major step forward by launching HoliDEX, a new decentralized exchange (DEX). The goal of the platform is to streamline cryptocurrency operations and enhance user experience.
L2 and L3 solutions. The widespread adoption of these products continues to grow in 2024. Layer-2 (L2) and Layer-3 (L3) solutions improve the scalability and efficiency of blockchain. The DEX projects not announced yesterday increase their market caps and launch their tokens. For instance, Hyperliquid, the platform that combined L2 and L3 systems to get a perfect combo: high speed and excellent interoperability.
Rise of Solana and memecoins. In 2024, Solana surpassed Ethereum in the number of transactions, largely driven by the launch of pump.fun, a launchpad for memecoins built on the Solana blockchain. This surge in activity significantly increased the revenue of Solana-based decentralized applications (DApps). For instance, Solana-based DApps generated $365 million only in November. At this, meme coins were the top contributors.
If in the beginning of the year, the application of meme coins were relatively niche ($600,000), their popularity had increased 300x and reached $183 million by the end of the year. It was a stress test for the Solana blockchain that processed all these transactions. The phenomenon led to a substantial increase in transaction volumes on Solana-based DEXes such as Raydium, Jupiter, Orca, and more.
The trends of 2024 have paved the way for a new era of innovation and adoption. This year showcased the potential for mass adoption, but also tested the limits of existing systems. Still there is much to be done. The developments created today shape the landscape of tomorrow, thus setting the stage for a dynamic, exciting, and promising future.
Press releases or guest posts published by Crypto Economy have been submitted by companies or their representatives. Crypto Economy is not part of any of these agencies, projects or platforms. At Crypto Economy we do not give investment advice, if you are going to invest in any of the promoted projects you should do your own research.
