Fourth Bitcoin Halving and the 2024 Bull Cycle
The 2024 Bitcoin halving ignited the cryptocurrency market’s fourth bull cycle, driving Bitcoin to an all-time high of $108,135. With U.S. spot ETFs approved, interest rate cuts, and rising adoption, the crypto market capitalization surged to $3.91 trillion, marking a pivotal year for digital assets.
Bitcoin halving in 2024 is the fourth, heralding the start of the cryptocurrency market’s fourth bull cycle, although in ways few predicted. The surge was largely propelled by significant macroeconomic shifts in Bitcoin’s 15th year, such as the approval of U.S. spot ETFs, central bank interest rate cuts, and Donald Trump’s re-election as U.S. President. These factors helped cryptocurrencies re-enter the mainstream spotlight following the FTX collapse, with ETFs opening fresh avenues for capital inflows. On December 17, Bitcoin reached an all-time high of $108,135, pushing the total cryptocurrency market capitalization to a record $3.91 trillion.
CoinGecko’s comprehensive 2024 Annual Crypto Industry Report provides an in-depth analysis of the market landscape, covering Bitcoin, Ethereum, decentralized finance (DeFi), non-fungible tokens (NFTs), centralized exchanges (CEXs), and decentralized exchanges (DEXs). Below are the top seven highlights:
Top 7 Highlights from the 2024 Crypto Industry Report
1. Total Crypto Market Cap Grew +45.7% in Q4, Ending the Year at $3.91 Trillion
The total cryptocurrency market capitalization surged by +45.7% ($1.07 trillion) in Q4, closing the quarter at $3.40 trillion. After a lull in Q3, the market rebounded mid-Q4, fueled by Trump’s U.S. presidential victory. Over the year, market capitalization nearly doubled, growing +97.7% and peaking at $3.91 trillion in mid-December before stabilizing. Average daily trading volumes in Q4 stood at $200.7 billion, a staggering +128.2% increase from Q3’s $88 billion.
2. Bitcoin Dominance Climbed to 53.6% of the Total Market Cap
Bitcoin continued to gain market dominance, increasing by +0.9% in Q4 to account for 53.6% of the total crypto market cap. XRP saw the most significant growth in Q4, climbing to a 3.5% market share (+2.0%), surpassing BNB and Solana (SOL) to secure the #4 spot. Dogecoin (DOGE) also made a notable entry into the top seven cryptocurrencies, replacing USDC, which dropped out of the top tier for the first time since April 2021. Meanwhile, Ethereum’s market dominance declined from 13.4% in Q3 to 11.8% in Q4, marking its lowest point since April 2021.
3. Bitcoin Outperformed Major Asset Classes in 2024
Bitcoin had a record-breaking year, breaching $100,000 for the first time on December 9 and reaching a high of $108,135. It ended the year at $93,508, representing a +121.5% gain from its January price. The rally was fueled by Trump’s election win and the U.S. Federal Reserve’s rate cuts, which set expectations for continued monetary easing into 2025. Bitcoin’s average daily trading volume more than doubled in Q4, climbing from $31.1 billion in Q3 to $62.6 billion. On December 6 alone, trading volume hit $190 billion as Bitcoin crossed the $100,000 mark.
4. AI Agent Market Cap Soared by +322.2% in Q4
The market for AI agents skyrocketed in 2024, with its capitalization jumping +322.2% in Q4, from $4.8 billion to $15.5 billion. This explosive growth was driven by new launches like GOAT on Solana and the Terminal of Truths on the X archetype. Notable AI agents emerged on both the Solana and Base blockchains, with Base taking significant market share by late 2024 due to projects like AIXBT and Virtuals Protocol (VIRTUAL). However, Solana regained momentum in December with launches such as GRIFFAIN and AI Rig Complex (ARC).
5. Ethereum Layer 2 Transactions Grew +48.3% in Q4, with Base Leading the Charge
The top 10 Ethereum Layer 2 networks averaged 15 million daily transactions in Q4, a +48.3% increase. Base dominated, processing 7.2 million daily transactions, up +78.7% from Q3. Taiko overtook Arbitrum to become the second-most active Layer 2, accounting for 20.6% of all transactions. Its +85.5% QoQ growth was attributed to the launch of several DeFi protocols. By contrast, Arbitrum’s transaction growth slowed to +14.0% QoQ.
6. CEX Spot Trading Volume Hit a Record $6.45 Trillion in Q4
The top 10 centralized exchanges reported $6.45 trillion in spot trading volume during Q4, a +111.7% QoQ increase and a new all-time high. Binance retained its dominance with a 34.7% market share in December, surpassing $1 trillion in monthly volume for the second time in 2024. Upbit recorded the fastest growth, with its trading volume surging +314.8% QoQ to $561.9 billion, fueled by heightened activity in South Korea during martial law in December.
7. Solana Surpassed Ethereum as the Leading DEX Chain
Solana became the dominant decentralized exchange (DEX) trading chain in Q4, accounting for over 30% of all trades. Its trading volume reached $219.2 billion, growing +152.0% QoQ. Despite being edged out in Q4, Ethereum maintained its yearly dominance with a 33.5% market share compared to Solana’s 25.2%. The base also gained traction, ending Q4 with a 19% market share after growing +206.5% QoQ.
The 2024 Bitcoin halving underscored its role as a catalyst for market growth, driving unprecedented highs. As Bitcoin and the crypto market evolve, investors should remain vigilant, diversify portfolios, and stay informed about market trends. Harness the halving’s momentum wisely to capitalize on opportunities in this dynamic digital asset era.
To dive deeper into these insights, read the full CoinGecko 2024 Annual Crypto Industry Report.
