In This Article
After the transformational year of 2024, the crypto industry is set for further development. Bitcoin enters the mainstream.
Bitcoin In The Mainstream
The authors of the material noted that 2024 will be considered one of the most significant periods in Bitcoin's history. The digital gold surpassed a significant level of $100,000, over 1 million BTC were accumulated in ETFs launched at the beginning of the year, and world governments began discussing the inclusion of the coin in national reserves.
Throughout the year, Bitcoin's dominance continued to grow; however, analysts believe this trend may slow down:
“Dominance seems to have no room for further growth, as stablecoins alone account for 17.5% of the total cryptocurrency market capitalization, while Bitcoin's share is already about 60%.”
At the time of writing, the dominance index stands at 59.5%.
Analysts suggest that the bullish cycle will continue into 2025, with Bitcoin's price reaching $150,000, although the euphoria following its crossing of $100,000 has somewhat cooled, leading to increased interest in altcoins.
Growing Interest in Altcoins
In 2024, the market capitalization of altcoins surged by 76%, exceeding $1.5 trillion for the first time despite obstacles — institutional money primarily flowed into Bitcoin while retail investors focused on meme coins. Major coins like SOL, XRP, SUI, and TON significantly influenced this dynamic.
In December, the Blockchain Center's altseason index briefly entered altcoin territory but soon returned to neutral indicators.
Meme coins emerged as the most successful segment. The cumulative price growth of the 900 largest assets adjusted for market capitalization was around 1600%. This figure does not account for numerous failed projects launched on platforms like Pump.fun and Moonshot.
AI projects took second place, followed by RWA (Real World Assets).
DeFi and smart contract platforms lagged behind Bitcoin in growth metrics. Despite the launch of exchange-traded funds (ETFs), ETH also fell behind the leading cryptocurrency.
According to the authors, with Bitcoin's decreasing dominance, a "long-awaited altcoin-centric phase among traders" may begin. Furthermore, the start of the year has historically been a positive period for Ethereum, and a change in leadership in the U.S. is likely to bring new money into the crypto industry.
RWA: A Bridge Between TradFi and Blockchain
With advancements in blockchain technology and increased institutional adoption in 2024, the RWA segment demonstrated unprecedented growth.
The total value of tokenized assets rose by 85%, surpassing $19 billion.
The most popular category within this segment was private loans with a share of 49.9%. Real estate took second place with 21.7%, followed by U.S. Treasury bonds with 20.5%.
In a high-yield environment, tokenized bonds exhibited a 400% increase compared to 2023 figures. The ability to divide bonds into parts worth up to $10 attracted retail investors.
Over 90% of the market was accounted for by Ethereum (57.2%) and ZKsync Era (26.4%). Stellar ranked third with 4.1%.
Analysts believe that the RWA segment has the potential to reach a market capitalization of $50 billion or more by 2025. If growth continues at this pace, this figure could reach $1.3 trillion by 2030.
Explosion of DePIN and AI Agents
In 2024, revenues from DePIN projects increased one hundredfold. The total number of nodes in the ecosystem exceeded 13 million.
Five projects supported over 1 million active nodes; more than 20 others had around 100,000 each.
The capitalization of AI agent projects grew by 224% just in Q4 — from $4.8 billion in October to $15.5 billion in December. Approximately 56% of the market (equivalent to $8.44 billion) belongs to Solana's ecosystem.
Among "new technological sectors," DeSci showed the worst dynamics. The niche has a capitalization of about $1.43 billion, with two projects: BIO Protocol and OriginTrail accounting for 50% with figures of $440 million and $320 million respectively.
According to the authors, if clearer use cases develop for these segments in 2025, corresponding technologies will integrate more strongly into mainstream industries. Innovations at the intersection of niches — such as AI and DePIN — hold significant growth potential.
Mixed Performance of Crypto Stocks
The performance dynamics of crypto companies' stocks varied significantly in 2024.
Shares of Bitcoin buyer MicroStrategy surged by 400%. Mining firm MARA raised over $1 billion through convertible bond sales.
However, most other Bitcoin miners faced negative trends due to rising costs and declining profits.
Cointelegraph's findings: The market is in a state of "cautious optimism." Future dynamics depend on improving energy efficiency and increasing equipment productivity.
Regulation in the EU and USA
Analysts believe that implementing the MiCA bill in the EU benefits large companies with existing compliance departments while imposing excessive costs on smaller businesses.
With changes in SEC leadership and a friendlier stance from U.S. authorities towards crypto projects: several cases against industry participants have already been closed, the environment is becoming more favorable for cryptocurrencies. Additionally, if passed, legislation like FIT21 would limit SEC powers in this market.
DeFi Recovery
The year 2024 marked a recovery period for DeFi segments. The Total Value Locked (TVL) in projects within this segment increased by 118%, reaching $185 billion. Trading volumes on decentralized exchanges grew by 165%.
One key driver was liquidity staking projects; over the year, locked assets doubled—from $30 billion to $60 billion—making this category rank first within DeFi with a share of 33.4% of total TVL.
Lending took second place with a share of 25.6%, followed by restaking with 13.9%.
Trading volumes on decentralized exchanges also saw significant growth; monthly figures exceeded $350 billion in December 2024 — a rise of 165% compared to the previous year.
Analysts linked this growth to positive dynamics across cryptocurrency markets overall and reduced blockchain transaction costs.
Forecasts suggest that by 2025 TVL in DeFi will exceed $200 billion while trading volume on DEX will reach around $4 billion, capturing about 20% market share.
As a reminder: In January experts from Bernstein pointed out a resurgence of interest from traditional investors towards cryptocurrencies.
