Cryptocurrency is developing rapidly – so fast that you could miss it in the blink of an eye.
This trend has continued in the first half of this year, with new chains and applications emerging daily, and the crypto industry gaining mainstream recognition in the financial world.
Amidst the Twitter echo chamber and the frenzy of bull market price trends, it’s easy to overlook the bigger picture. So, let’s zoom in and focus on the signals within the noise.
Crypto is just getting started; don’t be shaken.
Today, we will review the major developments in the first half of 2024, discussing significant events and trends that highlight the progress we have made this year.
1. Cryptocurrency is now mainstream
Remember when cryptocurrency was just a niche plaything for cypherpunks? Those days are long gone.
In the first half of 2024, cryptocurrencies broke into the mainstream.
The turning point was the long-awaited approval of physically-backed Bitcoin ETF in January.
Suddenly, Wall Street had a comfortable entryway into cryptocurrencies, and they rushed in. 11 ETFs were launched in a day, breaking trading volume records.
And it didn’t stop at Bitcoin.
The U.S. Securities and Exchange Commission (SEC) eventually approved 8 physically-backed ETH ETFs in May, further validating the entire cryptocurrency ecosystem and opening the doors for broader institutional adoption.
It’s not just ETFs. Fortune 500 companies are also joining the fray. The number of cryptocurrency projects launched hit a record high, ranging from consumer payments to tokenizing treasures, and who knows what else.
The bottom line? Cryptocurrency is no longer on the fringes. It is welcomed by financial heavyweights from Wall Street to Silicon Valley. The future of finance is cryptocurrency, and everyone knows it.
2. Cryptocurrency adoption is accelerating
Cryptocurrency adoption is accelerating at an astonishing pace.
The number of active blockchain users has grown significantly, with April seeing a record high of 42.92 million active addresses.
This indicates that users are able to do meaningful things on the blockchain. One factor could be the surge in different types of applications and services in the crypto ecosystem, from social networking apps like Farcaster, Friend.tech, and Fantasytop, to new chains and innovative DeFi primitives (such as restake).
Another factor is the resurgence of DeFi.
DeFi activity and attention are on the rise again, signaling new interests and activities on-chain that go beyond mere speculation, potentially moving towards real-world utility like stablecoins for payments and tokenizing real-world assets (such as government securities).
The momentum is clear: more and more people are coming to the chain, and they are finding more reasons to stay.
3. Ethereum still dominates, but Solana is rising
Ethereum remains the dominant force in the cryptocurrency space.
Over 60% of the total value locked in DeFi is on Ethereum, proving its Lindy ecosystem as the foundation for countless applications and chains.
This dominance is not just a matter of capital, but also of technical progress on the roadmap. Ethereum is expanding through Layer 2 solutions like Base, which have seen widespread adoption this year, and with the recent Dencun upgrade, users are provided with significantly reduced gas fees.
However, crypto is no longer just Ethereum and its ecosystem. Today, we have ecosystems like Solana making impressive strides.
Forget the hype for a moment, let’s focus on the numbers.
Solana’s daily active users are 2-3 times higher than the same period last year, approaching the peak of 2021’s frenzy.
This user growth is not just a vanity metric; it is a meaningful indicator. It translates into real utility –
Solana’s DEX trading volume has even surpassed Ethereum multiple times in this cycle, as it has become the hub for memecoin trading.
Furthermore, Solana’s innovation engine is running hot. Technological advancements like zk compression and user-friendly features like Blinks are laying the foundation for broader adoption, and we can see Solana’s network effects taking root in real-time.
Undoubtedly: Ethereum is not going away. Its established network effects and vast developer community ensure its continued importance in the crypto space. But Solana’s impressive progress cannot be ignored. Both ecosystems are thriving in unique ways. This parallel adoption is a win for cryptocurrency users, as it accelerates innovation and drives the industry forward.
4. Cryptocurrency hits new highs
Bitcoin hit a new all-time high in March, briefly surpassing the $70,000 mark. While the peak seemed to end rather abruptly, let’s not get ahead of ourselves. This bull market is far from over.
To be honest, we’ve all been a little euphoric lately, haven’t we? Cryptocurrencies hitting all-time highs, meme coins thriving, every celebrity launching their own token. The key point is: while market sentiment may have significantly cooled off, the long-term prospects for cryptocurrencies remain optimistic.
The long-awaited ETH ETF is on the horizon, rate cuts may be on the way, cryptocurrencies may continue to gain a foothold on the national stage in the U.S. with potential positive policy shifts in elections.
This pullback may feel like the end, but in the world of cryptocurrency, it is often a buying opportunity. So, unless you’re facing a margin call, perhaps you can hold on and enjoy the ride.
In conclusion
So, was the first half of 2024 smooth sailing for the cryptocurrency space? Not entirely.
We have seen quite a bit of noise – regulatory FUD, narrative bubbles, meme coin frenzy, celebrity coins, volatile price trends, and airdrops that missed the mark.
But things are looking much brighter. Cryptocurrency adoption is accelerating rapidly, institutional interest is at an all-time high, and the regulatory environment is improving. All these signs indicate that the industry will continue to grow as strong fundamentals and future catalysts are at play.
