Author: CoinGecko
Compiled by: Vernacular Blockchain
Bitcoin’s fourth halving in 2024 marks the beginning of the fourth bull run in the cryptocurrency market, although not in the way many expected. The market’s momentum, on Bitcoin’s 15th anniversary, was significantly boosted by macroeconomic policy changes, including the approval of spot ETFs in the United States, central bank rate cuts, and the re-election of Donald Trump. These changes have brought cryptocurrencies back into the mainstream spotlight after the FTX crash, and ETFs have provided new channels for capital inflows. Bitcoin hit a record high of $108,135 on December 17, pushing the total cryptocurrency market capitalization to a new record of $3.91 trillion.
Our 2024 Annual Crypto Industry Report covers everything from the crypto market landscape to analysis of Bitcoin and Ethereum, takes a deep dive into the decentralized finance (DeFi) and non-fungible token (NFT) ecosystems, and reviews the performance of centralized exchanges (CEX) and decentralized exchanges (DEX).
We’ve summarized seven key highlights, but you can read the full 53-page report if you need to:
1) In the fourth quarter of 2024, the total market value of the cryptocurrency market increased by 45.7%, closing at US$3.91 trillion, a year-on-year increase of 97.7%.
2) Bitcoin has increased its market dominance and currently accounts for 53.6% of the total crypto market capitalization.
3) Bitcoin outperforms major asset classes throughout 2024 and in the fourth quarter.
4) The market value of AI agents increased by 322.2% in the fourth quarter of 2024, from $4.8 billion to $15.4 billion.
5) In the fourth quarter of 2024, the transaction volume of the top ten Ethereum Layer 2 increased by 48.3%, of which Base accounted for 48.3% of the transaction volume.
6) In the fourth quarter of 2024, the spot trading volume of centralized trading platforms reached 6.45 trillion US dollars, a month-on-month increase of 111.7%, setting a new historical record.
7) In the fourth quarter of 2024, Solana surpassed Ethereum and became the dominant chain for DEX transactions, accounting for more than 30% of all DEX transactions.
1. In the fourth quarter of 2024, the total market value of the cryptocurrency market increased by 45.7% to $3.91 trillion
In the fourth quarter of 2024, the total market value of the cryptocurrency market increased by 45.7%, or $1.07 trillion, to close at $3.40 trillion. Although the market lost some momentum in the third quarter, after a brief bottoming shock, the market rebounded in the middle of the fourth quarter, especially after Donald Trump won the US presidential election.
In 2024, the total market value of the cryptocurrency market almost doubled, an increase of 97.7%. Its market value reached an all-time high of $3.91 trillion in mid-December, and then fell back to $3.40 trillion. At the same time, the average trading volume in the fourth quarter of 2024 was $200.7 billion, an increase of 128.2% from $88 billion in the third quarter.
2. Bitcoin’s market share has increased, currently accounting for 53.6% of the total cryptocurrency market value
Bitcoin (BTC) continued to climb in market share, albeit at a slower pace, increasing by 0.9% in Q4 2024. XRP was the standout performer during this quarter, rising to 3.5% market share (up 2.0%). This allowed XRP to jump from 7th to 4th place, surpassing BNB and Solana (SOL).
In addition, Dogecoin (DOGE) became a new coin in the top 7 by market capitalization, replacing USDC. This is the first time that USDC has failed to enter the top 7 since April 2021. At the same time, Ethereum (ETH) continued to decline in the fourth quarter, with its market share falling from 13.4% in the third quarter to 11.8%, reaching its lowest level since April 2021.
3. Bitcoin outperforms major asset classes in 2024 overall and in the fourth quarter
Q4 2024 was a milestone quarter for Bitcoin (BTC) as it broke through the $100,000 mark for the first time and reached a peak price of $108,135 on December 9 before falling back slightly to close the year at $93,508. This means that Bitcoin is up +121.5% year-to-date.
Bitcoin’s rally began at a low of $54,000 in the third quarter, but prices saw another significant rally following Donald Trump’s victory in the U.S. presidential election. The upward momentum was also supported by the U.S. Federal Reserve’s rate cuts, and the market generally expects monetary easing to continue through 2025.
Meanwhile, average daily trading volume surged to $62.6 billion in Q4 from $31.1 billion in Q3, a +101.3% quarter-over-quarter increase. On December 6, when Bitcoin broke $100,000, spot trading volume exceeded $190 billion, setting a new yearly high.
Equity markets also performed strongly in the fourth quarter, with the Nasdaq up +8.0% and the S&P 500 up +3.0%. Meanwhile, the U.S. Dollar Index (DXY) also performed well, up +7.0%, driven by the depreciation of other major currencies. The Japanese Yen (JPY) was the worst performer in the fourth quarter, falling -8.0%, almost erasing the gains made due to the end of the yen carry trade.
4. The market value of AI agents increased by +322.2% in the fourth quarter of 2024, from $4.8 billion to $15.5 billion
AI agents as a category have risen rapidly since the launch of GOAT on Solana in early October. While Terminal of Truths pioneered the AI agent KOL in the X archetype, this narrative trend has mostly faded. However, the category has seen an astounding increase in market cap in Q4 2024, up +322.2% from $4.8 billion to $15.5 billion.
Currently, Solana and Base blockchains are the only places where there is significant AI agency. At the end of 2024, Base blockchain has significantly captured market share from Solana and GOAT through projects such as AIXBT and Virtuals Protocol (VIRTUAL). However, Solana has begun to regain some market share after launching GRIFFAIN and AI Rig Complex (ARC) in late December.
5. In the fourth quarter of 2024, the transaction volume on the top 10 Ethereum Layer 2 increased by +48.3%, of which the Base blockchain accounted for 48.3% of the transaction share
Ethereum Layer 2 continued to grow in Q4 2024, with the average daily transaction volume of the top 10 Layer 2 reaching 15 million. The growth in transaction volume was mainly driven by Base, which had an average daily transaction volume of 7.2 million in Q4, an increase of +78.7% from 4 million in Q3. In contrast, the Ethereum mainnet processed an average of approximately 1.2 million transactions per day in Q4. In Q4, 48.3% of the top 10 Layer 2 transactions occurred on Base.
Meanwhile, Taiko became the second most active Layer 2, surpassing Arbitrum, with Taiko accounting for 20.6% of transaction share in Q4, ahead of Arbitrum's 13.7%. Taiko's trading volume increased by +85.5% month-on-month, while Arbitrum only increased by +14.0%. Taiko's significant growth can be attributed to the launch of multiple DeFi protocols on this relatively new chain.
6. In the fourth quarter of 2024, the spot trading volume of centralized trading platforms reached 6.45 trillion US dollars, an increase of +111.7% month-on-month, setting a new record
In Q4 2024, the spot trading volume of the top 10 centralized exchanges (CEXs) reached $6.5 trillion, a month-on-month increase of +111.7%.
This is the first time that quarterly trading volume has exceeded the $6 trillion mark. The top 10 CEXs will have a combined trading volume of $17.4 trillion in 2024, compared to $7.2 trillion in 2023.
BN continues to maintain its dominance, with a market share of 34.7% among the top 10 CEXs at the end of December. Notably, BN’s trading volume exceeded the $1 trillion mark in December, the second time this milestone has been reached in 2024.
Upbit was the fastest growing CEX in Q4, with its trading volume increasing by +314.8% from $135.5 billion to $561.9 billion. Upbit’s trading volume surged as South Korea declared martial law on December 3. During this turbulent period, its daily trading volume reached approximately $21 billion, six times its average daily volume.
7. Solana surpasses Ethereum to become the dominant chain for decentralized exchange (DEX) transactions in the fourth quarter of 2024, accounting for more than 30% of all transactions
In Q4 2024, Solana became the dominant chain for decentralized exchange (DEX) trading, with a market share of over 30%. In Q4, Solana's trading volume reached $219.2 billion, a month-on-month increase of +152.0%. In comparison, Ethereum's trading volume was $184.3 billion, with a market share of between 25% and 28%. Despite this, Ethereum still leads Solana on an annual basis, accounting for 33.5% of DEX trading volume, while Solana has a market share of 25.2%.
Meanwhile, Base managed to surpass Arbitrum in Q4 and maintain its leading position. Its market share exceeded 14% in Q4, while Arbitrum's market share remained between 10% and 11%. Layer 2, supported by Coinbase, reached 19.0% market share in December, a month-on-month increase of +206.5%. Base's trading volume was $116.7 billion, while Arbitrum's was $79.2 billion.
Tron is the fastest growing chain among the top 10 chains, with a quarter-on-quarter growth of +232.7%. Its transaction volume increased from $2.9 billion in Q3 to $9.6 billion in Q4. In December 2024, Tron's market share was 2.1%, making it the sixth largest chain.
