Looking Back at 2024: The Transformation of Cryptocurrency from Low to Peak

Author: BitpushNews

After experiencing the harsh winter of 2022, the cryptocurrency industry in 2024 has been reborn.

Even without Donald Trump's grand slogan of "the global crypto capital," 2024 is destined to be a significant chapter in the history of cryptocurrency development, as it integrates into the mainstream financial system at an unprecedented pace.

Patrick Kirby, a policy advisor for the Crypto Innovation Council, stated at an industry conference in 2024: "The approval of spot Bitcoin ETFs and Ethereum ETFs is undoubtedly a crucial turning point for the industry's development. Looking back at the journey of cryptocurrencies, we cannot help but marvel at the speed of its growth."

With Bitcoin surpassing 100,000 and a series of key regulatory advancements and election results, cryptocurrencies will undoubtedly play a more important role on the future political and economic stage. The Bitpush editorial team will take you through some significant developments in the cryptocurrency field over the past 12 months.

Mainstream Embraces Cryptocurrency

The pace of cryptocurrency moving towards the mainstream is becoming increasingly firm, and the most significant evidence is the traditional financial giants opening their arms to embrace this emerging asset class—mediated by the highly favored investment tool: Exchange-Traded Funds (ETFs).

ETFs, which are funds traded on exchanges like stocks, cleverly build a bridge that allows investors to participate easily without directly holding digital assets, thus enjoying the growth dividends of the cryptocurrency market.

In January 2024, the U.S. Securities and Exchange Commission (SEC) historically approved the listing of 11 spot Bitcoin ETFs, marking the beginning of a new era for cryptocurrency investment in the United States.

According to Bitcoin.com, as of December 24, the holdings of U.S. spot Bitcoin ETFs surpassed 1.13 million BTC in less than a year, showcasing their ability to attract capital.

Ethereum ETFs also performed impressively, attracting $14.28 billion in inflows, accounting for 2.93% of Ethereum's market capitalization, becoming a major highlight in this year's cryptocurrency investment landscape.

The robust development of ETFs clearly demonstrates that mainstream institutions are increasingly accepting cryptocurrencies. As ETF.com senior analyst Sumit Roy predicted, "It is conceivable that in the future, spot Bitcoin ETFs could even account for 10%, 20%, or even a higher proportion of Bitcoin's market capitalization."

Memecoin Breaks Out and Wealth Effect

The wealth effect and cultural output of Memecoins once again confirm the powerful force of "entertainment first" in the internet age. Amid the trend of cryptocurrencies becoming institutionalized and professionalized, Memecoins are an undeniable wave.

According to Artemis data, Meme coins were the third-largest profitable narrative in 2024, with an average annual return rate of 201%, far exceeding the market's average return rate of 128%.

For example, Fartcoin's valuation rapidly climbed to $836 million since its launch in October; the Patriot token, born out of Trump's re-election, surged 626% in just one week, with a market cap exceeding $73 million. Its community even spent a fortune to create a 22-foot tall bronze statue of Trump to celebrate this "victory," showcasing the magic of Memecoins.

The technological support behind the Memecoin frenzy is Solana, which, with its high performance and low-cost advantages, has attracted 89% of new Memecoin projects to take root here, becoming a veritable Memecoin fertile ground.

Cryptocurrency Influences Politics

The 2024 presidential election has transformed the status of cryptocurrencies from a niche movement to a strong participant in American politics.

According to data compiled by blockchain analytics platform Breadcrumbs and FOX Business, the cryptocurrency industry set a record of $238 million in donations during this election season.

Some campaign ads did not mention cryptocurrencies, which drew criticism from some advocacy groups. Public Citizen author Ray Claypool stated, "This tsunami of money is a blatant attempt by profit-driven enterprises to prioritize private economic interests over the public good."

Cryptocurrency User Numbers Surge to Historic Highs

According to data from Token Terminal, as of early December, the number of cryptocurrency holders reached 18.7 million. The industry has also attracted a more diverse range of investors.

A research report from Coinbase indicates that the voting patterns of cryptocurrency holders are not uniform and do not always conform to the stereotype of "techies in hoodies." The study found that 18% of cryptocurrency holders are stay-at-home parents, 10% are small business owners, and 41% listen to country music.

Legislative Progress

A cryptocurrency legislation that has been brewing for nearly a year was passed in the U.S. House of Representatives in May, marking a key step for the United States in regulating digital assets. The bill, known as the "Financial Innovation and Technology Act of the 21st Century" (FIT21), was passed with rare bipartisan cooperation, which is particularly noteworthy. In an increasingly polarized U.S. political landscape, 71 Democratic representatives joined over 200 Republican representatives in voting in favor, reflecting the bill's significance. Patrick Kirby from the Crypto Innovation Council stated that the passage of this market structure bill is "an important turning point in the industry's development."

The FIT21 bill aims to provide clearer regulatory guidance for cryptocurrency companies, clarifying which digital assets should be classified as securities and which should be classified as commodities, thereby ending the "tug-of-war" between the SEC and the Commodity Futures Trading Commission (CFTC) over cryptocurrency regulation and clearing obstacles for industry development.

The bill has now been submitted to the Senate for review, and some analysts believe that the Senate may introduce more forward-looking legislation based on this to better address the challenges posed by the rapidly evolving digital asset market, such as the regulation of stablecoins.

U.S. States Prepare to Embrace Cryptocurrency

Bitpush previously reported that Ohio State Representative Derek Merrin proposed a bill to establish a Bitcoin reserve in the state treasury, authorizing the state government to invest in Bitcoin. In fact, Ohio is not an isolated case. Pennsylvania and Texas have also passed similar bills, indicating that some state governments in the U.S. are actively exploring the possibility of incorporating cryptocurrencies into their fiscal strategies.

Texas State Representative Giovanni Capriglione stated that inflation is "the biggest enemy of our investments," and he believes that establishing a strategic Bitcoin reserve would be a "win-win" for the state government. This view is also shared by several other legislators. The scarcity of Bitcoin gives it certain anti-inflation properties, which is an important reason why some legislators support its inclusion in state fiscal reserves.

Although there are still many challenges ahead, the trend towards mainstream adoption is irreversible. We have reason to expect that in the near future, cryptocurrencies will play an increasingly important role in the global economy and politics.