Binance Research Full-Year Report 2024 Unveils Key Crypto Trends and Developments and What to Expect in 2025
In Brief
Binance Research’s 2024 report highlights significant events and trends in the cryptocurrency industry, predicting major topics to impact 2025.
For the cryptocurrency industry, 2024 was a crucial year, full of noteworthy turning points, changing storylines, and rapid expansion in several industries. The full-year report from Binance Research offers a thorough examination of the events and trends that shaped the year, providing insights into the major topics that are likely to impact 2025.
Growth of the Crypto Market and Macrotrends
The market value of all cryptocurrencies increased by 96.2% year-on-year (YoY) in 2024, peaking at $3.9 trillion before settling at $3.4 trillion. This expansion came after a 108.6% rise in 2023, which was also a very good year. Notably, with advances of 40.7% and 59.5%, respectively, the first and fourth quarters of 2024 were very impressive.
The introduction of spot Bitcoin exchange-traded funds (ETFs) in the United States in January was one of the year’s key events. By the end of the year, these ETFs had amassed about $105 billion in total assets and received around $35 billion in net inflows. This advancement strengthened Bitcoin’s standing as a popular investment while also improving market accessibility.
Market optimism was further enhanced by the U.S. Federal Reserve’s September interest rate decrease decision and favorable regulatory expectations that followed the U.S. presidential election. The cryptocurrency market reached unprecedented heights as a result of these advantageous macroeconomic factors combining with rising institutional interest.
Bitcoin’s Comeback and Ecosystem Development
With its market domination surpassing 60% for the first time since 2021, Bitcoin continued to be a hot topic in 2024. The asset’s performance was greatly influenced by the adoption of spot Bitcoin ETFs, which enabled it to reach $100,000 in December. Additionally, Bitcoin did better than conventional asset classes, enhancing its standing as a top investment instrument.
While the ecosystem saw a 6,400% rise in the total value locked (TVL) of decentralized finance (DeFi), the fourth halving event of the year decreased the yearly issue of Bitcoin. The asset’s trajectory is anticipated to be shaped as we enter 2025 by the maturity of Bitcoin ETFs, possible acceptance by the new U.S. government, and advancements in Layer 2 (L2) solutions.
Ethereum and Competitive Layer-1 Systems
By controlling requirements like market capitalization, trade volume, and DeFi TVL, Ethereum maintained its position as the top alt-L1 network in 2024. However, due to its cheap transaction costs and rising developer interest, Solana surpassed Ethereum in terms of daily transactions and active addresses. While stablecoin acceptance on its network remained relatively modest, Solana also broke all-time highs in transaction fees and the number of decentralized exchanges.
With the impending Pectra update and the rise of new decentralized apps influencing its prospects for 2025, the Ethereum ecosystem experienced consistent growth. In the meantime, major improvements in scalability and protocol upgrades were also announced by other Layer-1 networks, including Avalanche, Tron, and Sui.
Solutions for Layer-2 Scaling and Token Dynamics
In 2024, a number of token launches spanning optimistic and zero-knowledge rollups signaled the Layer-2 (L2) ecosystem’s explosive growth. Despite not having a native token, Base, an L2 created by Coinbase, was the best-performing platform, gaining 39% of TVL and 67% of daily active users.
The capacity of L2 networks to sustain user engagement and capital inflows without heavily depending on token incentives will be crucial as 2025 draws near. Growth is anticipated to be sustained by innovations in ecosystem development and scaling solutions.
The Renaissance of DeFi
TVL increased by 119.7% year-to-date (YTD) to $119.3 billion in 2024, marking a significant resurgence of decentralized financing. The rise of on-chain financial primitives, improved user interfaces that mimicked centralized exchanges, and heightened institutional involvement all contributed to its comeback.
The core Money markets and DEXes, two DeFi subsectors, achieved significant milestones, and increased competition across protocols spurred innovation. These patterns show that DeFi is making steady headway toward wider acceptance and practical uses.
Stablecoins and the Development of the Market
In 2024, stablecoins had tremendous growth, reaching a high market value of $205 billion before finishing marginally lower at $204 billion. Tether’s (USDT) market capitalization increased by 50.2%, maintaining its position as the market leader. However, due to a change in user preferences, USD Coin (USDC) increased its market share by 82.4%.
Launched in late 2023, Ethena’s USDe quickly became the third-largest stablecoin, with a market valuation of $5.9 billion at the end of 2024. It is projected that the development of yield-bearing stablecoins and the growth of stablecoin use cases will continue to be major themes in 2025.
Memecoins and Web3 Gaming
Although it underperformed in comparison to the larger cryptocurrency market, the Web3 gaming industry recorded a 44% gain in overall market valuation. In spite of this, the sector hit important benchmarks, such as a 580% rise in the number of distinct active wallets interacting with games. Games like “Off the Grid” showed how widely accepted blockchain-based gaming may become.
The market value of memecoins increased by 212% in 2024, making them the best-performing crypto subsector. This market was controlled by Ethereum and Solana, with Solana emerging as the go-to network for trading memecoins because of its affordable fees and well-rounded product line. The rise of websites such as Pump.fun further solidified the economic and cultural influence of memecoins.
Integration of Crypto and AI Agents
In 2024, the relationship between crypto and artificial intelligence become increasingly popular. AI agents that were fueled by frameworks such as ai16z’s ElizaOS and Virtuals Protocol attracted market interest. These agents demonstrated the potential for more blockchain and AI integration by concentrating on applications ranging from market analysis to entertainment.
The emergence of AI swarms, the involvement of conventional tech firms in AI agents, and the creation of AI-powered decentralized systems are some of the major stories in this field. It is anticipated that these developments will pick up steam in 2025 and influence the direction of the cryptocurrency sector.
DePIN and Decentralized Social Networks
Decentralized Social (DeSoc) platforms encountered difficulties in 2024, as seen by the sharp decline in daily unique active wallets at the end of the year. However, by shifting toward developer-centric features and connectors, some dApps, like Farcaster, showed resiliency.
Decentralized physical infrastructure networks (DePIN) have garnered interest due to their practical uses in energy, telecommunications, and computing. Despite difficulties in generating money, the industry continues to be a viable path for blockchain adoption.
Trends in Investments and Capital Inflows
In 2024, Web3 projects received 1,432 investments totaling $9.2 billion in financing. With $4 billion, infrastructure projects received the largest portion of funding, followed by the gaming and DeFi industries. The ongoing interest in blockchain technology and its many uses is demonstrated by this investment activity.
It is anticipated that global monetary policy, legislative changes, and the continuous convergence of AI and cryptocurrency will continue to be at the forefront. Furthermore, developments in L2 solutions, the maturing of stablecoin markets, and the growth of the ecosystems for Ethereum and Bitcoin will all be crucial.
Disclaimer
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About The Author
Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
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Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
