Year in Review: 10 Major 2024 Crypto Market Trends
In this article, we will look at the major trends that preoccupied and defined the crypto market this year. And, since Bitcoin always has a way of squeezing itself into every conversation about crypto, you will find one or two Bitcoin-related trends in this list.
Table of Contents
- Bitcoin's Halving and ETF Approval
- Ethereum's Layer 2 Advancements
- NFT Market Resurgence
- The Rise of SocialFi
- Focus on Sustainability in Crypto Mining
- Intersection of DeFi and Traditional Finance
- AI Integration with Crypto
- The Role of Cross-Chain Interoperability
- Global Exploration of CBDCs
- The Bull Market and Its Drivers
2024 has been an exciting year for the crypto market. No doubt, it had its highs and lows, but we can relatively say that it ended on a more positive note than we had expected when Bitcoin’s price plunged mid-year.
It is worth noting that Bitcoin wasn’t the only spotlighted feature that graced the stage of the crypto market this year. It’s high time we saved the drama queen of all cryptocurrencies the attention.
In this article, we will look at the major trends that preoccupied and defined the crypto market this year. And, since Bitcoin always has a way of squeezing itself into every conversation about crypto, you will find one or two Bitcoin-related trends in this list.
What can we say? That coin is an attention junkie.
Well, let’s look at the trends then!
1. Bitcoin's Halving and ETF Approval
In 2024, two major events—Bitcoin’s halving and the approval of Bitcoin spot ETFs—had a massive impact on the crypto market.
Bitcoin’s halving, which occurs roughly every four years, reduces the reward miners receive for verifying transactions by half, effectively cutting the supply of new Bitcoins entering the market.
This supply shock historically drives up Bitcoin’s price, as demand remains steady or even increases.
Leading up to the 2024 halving, Bitcoin’s price climbed significantly, starting the year at around $44,000 and nearing $70,000 by May—a 59% jump that was closely watched in crypto market analysis.
On the other hand, the approval of Bitcoin spot ETFs by the U.S. Securities and Exchange Commission (SEC) transformed how traditional investors interact with Bitcoin.
Unlike futures-based ETFs, spot ETFs hold actual Bitcoin, making it easier for investors to gain exposure to the crypto market without directly owning or managing digital assets.
By simplifying access, ETFs opened the door for institutional investors and retirement funds to invest in Bitcoin.
BlackRock and Fidelity quickly dominated this market trend in crypto, with BlackRock managing $15 billion and Fidelity $9 billion in Bitcoin-related assets.
2. Ethereum's Layer 2 Advancements
In 2024, Ethereum’s Layer 2 solutions made significant strides in solving one of the crypto market's long-standing challenges: scalability.
Layer 2 networks like Polygon, Arbitrum, and Optimism gained massive traction by reducing transaction fees and increasing speed without compromising Ethereum’s strong security.
For instance, Arbitrum processed over 50 million transactions this year alone, compared to just 16 million in 2023, highlighting its growing adoption.
These advancements have made Ethereum more accessible, particularly for applications like decentralised finance (DeFi) and non-fungible tokens (NFTs), where high fees previously discouraged users.
By making transactions cheaper and faster, Layer 2 networks are helping Ethereum scale to meet global demand, aligning with market trend crypto goals of inclusivity and usability.
As of December 2024, over 40% of Ethereum transactions occurred on Layer 2 networks, showing just how transformative these advancements have been for the crypto market today.
3. NFT Market Resurgence
In 2024, the NFT (Non-Fungible Token) market made a major comeback, surprising even the most seasoned crypto market analysts.
After a quieter period in 2023, NFTs surged back into relevance, expanding their appeal far beyond digital art.
The resurgence was driven by several key factors, including the introduction of Bitcoin-based NFTs, which added a fresh layer of interest and utility to the market.
Popular marketplaces like OpenSea reported a significant increase in monthly trading volumes in 2024 compared to the previous year, reflecting renewed enthusiasm for digital collectibles, gaming assets, and tokenised real-world items.
Major brands also jumped on the bandwagon, using NFTs for customer engagement, limited-edition product launches, and loyalty programmes.
For instance, Adidas' NFT collection generated $11.2 million in sales within the first 24 hours of its launch.
4. The Rise of SocialFi
2024 saw the rapid growth of SocialFi, a trend where social media meets blockchain and finance.
This innovative combination allows users to earn rewards for participating in online communities while maintaining control of their data.
SocialFi projects like Farcaster and Friend Tech have gained significant attention by merging social interaction with decentralised financial tools.
SocialFi's appeal lies in its ability to create financial incentives for online engagement.
Imagine a platform where you not only post updates but also earn cryptocurrency for each like or share your content gets. That’s the essence of SocialFi.
This trend also reflects broader crypto market trends like the push for decentralisation and community-driven innovations.
By blending financial tools with social interaction, SocialFi is reshaping online communities, highlighting how blockchain technology extends far beyond just trading cryptocurrencies.
5. Focus on Sustainability in Crypto Mining
The crypto market today is seeing a significant shift towards sustainability, particularly in mining practices.
In the past, crypto mining faced heavy criticism for its massive energy consumption. For example, Bitcoin mining alone used more electricity in 2021 than entire countries like Argentina.
Fast forward to 2024, and there’s been noticeable progress. Many mining operations now use renewable energy sources like solar, wind, and hydropower to reduce their carbon footprint.
According to a report by the Bitcoin Mining Council, over 56% of global Bitcoin mining is powered by sustainable energy.
This trend aligns with global environmental goals and is reshaping market trends in crypto.
Companies are investing in advanced technology to create more energy-efficient mining rigs, cutting energy use by up to 30%.
Furthermore, alternative consensus mechanisms, such as Proof of Stake (used by Ethereum), are gaining traction because they consume significantly less energy than the traditional Proof of Work model.
These changes are not just about going green but also about improving the reputation of the crypto market.
As more people demand eco-friendly solutions, sustainable mining practices could drive increased adoption and trust in cryptocurrencies.
6. Intersection of DeFi and Traditional Finance
One of the most exciting crypto market trends in 2024 was the growing intersection between Decentralised Finance (DeFi) and traditional finance.
DeFi platforms, known for offering services like lending, borrowing, and trading without relying on banks, have increasingly attracted attention from major financial institutions.
This year, traditional players such as JP Morgan and Citibank explored partnerships with DeFi protocols to improve transaction efficiency and reduce costs.
For instance, the integration of Know Your Customer (KYC) protocols into DeFi systems made them more appealing to institutional investors by aligning with regulatory requirements.
This shift is evident in the rise of institutional investments in DeFi, which reached a record of $24 billion in 2024, up 60% from the previous year.
Also, platforms like Aave and MakerDAO reported a significant increase in daily trading volumes, with MakerDAO reaching $10 billion in assets under management.
This merging of traditional finance and DeFi demonstrates how both sectors can complement each other. Traditional finance brings regulatory oversight and stability, while DeFi introduces innovation and accessibility.
As a result, the crypto market today is witnessing a transformation that could pave the way for a more inclusive and efficient financial ecosystem.
7. AI Integration with Crypto
AI is making a big splash in the crypto market today, transforming how cryptocurrencies are developed, traded, and utilised.
One of the standout crypto market trends this year has been the rise of AI-powered tools and AI tokens.
AI tokens, which represent cryptocurrencies tied to AI-focused projects, have seen explosive growth. For instance, the combined market value of AI tokens skyrocketed from $2.7 billion in April 2023 to over $39 billion by mid-2024.
Popular tokens like Fetch.ai and SingularityNET have gained significant attention, with Fetch.ai’s token value jumping 300% within just one month earlier this year.
AI in crypto is not just about tokens.
Advanced algorithms are now used for crypto market analysis, helping traders predict market trends with greater accuracy.
These AI tools assess vast amounts of data—such as price movements and news trends—to provide actionable insights for investors.
Projects like Ocean Protocol and the newly formed ASI (Artificial Superintelligence) token are pushing boundaries by merging decentralised AI platforms, aiming to reduce reliance on big tech companies.
This AI-crypto partnership shows no signs of slowing down, making it one of the most exciting developments in the crypto market today.
This is definitely a trend to watch closely as it continues to shape the future of digital assets.
8. The Role of Cross-Chain Interoperability
One of the standout trends in the crypto market today is the increasing focus on cross-chain interoperability.
In simple terms, this technology allows different blockchain networks to communicate and work together seamlessly.
Think of it as building bridges between islands, where each island is a separate blockchain. Without these bridges, users and developers are limited to working within a single blockchain, which can restrict the potential of their crypto assets.
For example, if you want to transfer assets between Ethereum and Binance Smart Chain, cross-chain solutions like Cosmos or Polkadot make it possible.
In 2024, advancements in this area have significantly improved the liquidity and functionality of crypto assets, which is a crucial factor in driving market trend crypto adoption.
According to a Crypto Market Analysis Report, over 40% of DeFi transactions in the first half of 2024 relied on cross-chain bridges, compared to just 25% in 2023.
This shows how essential interoperability has become for the crypto market today.
Interoperability is not just a technical feature—it’s a game-changer for the entire industry.
By enabling blockchains to work together, it supports a more unified and efficient digital asset ecosystem, reducing transaction costs and enhancing user experiences.
With cross-chain interoperability, the crypto market is moving closer to becoming more accessible and user-friendly, driving its appeal beyond crypto enthusiasts to mainstream users.
This trend is surely one to watch out for as we move into 2025.
9. Global Exploration of CBDCs
Central Bank Digital Currencies (CBDCs) have become a hot topic in the crypto market today, with nearly every major economy exploring or testing their potential.
According to a recent analysis, 134 countries, representing 98% of the world’s GDP, are developing or piloting their own CBDCs.
Some nations are already ahead of the curve—countries like Nigeria, Jamaica, and the Bahamas have “fully launched” CBDCs.
China is leading with the largest trial of its digital yuan (e-CNY), which is currently being tested in 260 million wallets across 25 cities. Meanwhile, global organisations like SWIFT are working on networks to make CBDCs more efficient for cross-border payments, a move expected to boost their adoption worldwide.
Despite the rapid progress, not all countries are on board.
The U.S. has taken a cautious approach, citing concerns about privacy and the potential impact on its financial system.
Still, by 2030, the Bank of International Settlements predicts that 15 retail CBDCs and 9 wholesale CBDCs will be fully operational, highlighting the growing importance of this market trend in crypto.
Whether it's for improving payment systems or competing with decentralised cryptocurrencies, the rise of CBDCs is reshaping the future of finance, making it one of the standout crypto market trends this year.
10. The Bull Market and Its Drivers
The crypto market in 2024 has witnessed a major bull market, with Bitcoin’s value skyrocketing and attracting significant attention.
The surge in Bitcoin’s price, which jumped significantly at the start of 2024, was driven by two major factors: the approval of Bitcoin exchange-traded funds (ETFs) and the upcoming Bitcoin halving event.
These ETFs, approved by the SEC in January 2024, have made it easier for retail and institutional investors to invest in Bitcoin without actually holding the cryptocurrency.
Wrapping Up
Phew! Busy year for crypto, don’t you think?
Let’s just say that the crypto market has fought many battles against its validation and adoption and is still standing strong and relevant.
These trends only point to one thing: the crypto landscape is dominating the world of finance with its adoption into different sectors.
With trends like this in 2024, we are sure that 2025 will be an interesting year. However, the crypto market is also a volatile ecosystem, and anything can happen.
So, let’s keep our fingers crossed and stay tuned.
Disclaimer: This article was written to provide guidance and understanding. It is not an exhaustive article and should not be taken as financial advice. Obiex will not be held liable for your investment decisions.
