The year 2024 marked a pivotal turning point for the cryptocurrency market. From institutional adoption to regulatory shifts and explosive retail trends, digital assets matured significantly—both in market structure and public perception. Drawing insights from Kaiko Research, this deep dive explores ten key developments that shaped the crypto landscape in 2024, offering a data-driven retrospective of a year defined by resilience, innovation, and transformation.
Bitcoin’s March Toward $100,000
2024 was a landmark year for Bitcoin. The launch of spot Bitcoin ETFs in January signaled a new era of institutional acceptance, while the fourth Bitcoin halving in April reinforced its scarcity narrative. Despite major market volatility—including billion-dollar liquidations—BTC surged nearly 140% year-to-date in USD terms.
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This rally wasn’t just dollar-denominated. Against several fiat currencies that depreciated sharply post-2019, Bitcoin’s real-world purchasing power expanded even more dramatically. The convergence of macroeconomic uncertainty, ETF inflows, and growing geopolitical interest positioned BTC as a preferred store of value.
U.S. Election Fuels Crypto Optimism
The 2024 U.S. presidential election played a crucial role in shaping market sentiment. For the first time, digital assets became a central topic in national political discourse. Former President Donald Trump publicly endorsed pro-crypto policies, advocating for balanced regulation and open industry dialogue. His appearance at the Bitcoin 2024 conference in Nashville—shortly after an assassination attempt—further galvanized the community.
Both major candidates, including Vice President Kamala Harris, introduced forward-looking crypto initiatives, fostering bipartisan support. Ahead of November 5, Deribit saw massive volume on election-themed futures contracts, with traders heavily betting on a post-election BTC rally.
They were right.
Bitcoin surpassed $75,000 by November and broke $80,000 shortly after the election. A Senate composition favorable to innovation further boosted confidence. By mid-December, BTC reached an all-time high above $107,000, reflecting sustained bullish momentum driven by policy clarity and macro adoption.
Bitcoin Fees Spike During Halving and Ordinals Boom
On April 19, Bitcoin underwent its fourth halving—reducing block rewards from 6.25 to 3.125 BTC. But one of the most unexpected developments was the surge in network fees. Just before the event, average transaction fees spiked to a record $146, far exceeding Ethereum’s $3 average on the same day.
This fee explosion was largely driven by the Ordinals protocol, which enables NFT-like inscriptions on Bitcoin’s blockchain. Increased demand for block space from collectors and developers bidding for inscription slots pushed fees higher.
The launch of Runes, a new fungible token protocol on Bitcoin by Ordinals creator Casey Rodarmor, amplified this trend. Designed for simplicity and efficiency, Runes triggered another wave of on-chain activity. Like BRC-20 tokens before it, Runes intensified competition for limited block space—highlighting Bitcoin’s evolving role beyond just digital gold.
BlackRock Overtakes Grayscale in ETF Race
The approval of spot Bitcoin ETFs revolutionized institutional access. By late 2024, 11 approved ETFs collectively managed over $100 billion in assets—proving sustained demand from Wall Street.
BlackRock emerged as the dominant player. Its iShares Bitcoin Trust (IBIT) amassed over $55 billion in AUM within months, surpassing Grayscale’s GBTC—the once-uncontested leader since its 2013 debut.
Why the shift?
GBTC traded at steep discounts due to its closed-end structure and high 1.5% fee. In contrast, BlackRock and Fidelity offered lower fees (as low as 0.12%) and better liquidity—aligning with investor expectations in traditional ETF markets.
As capital flowed into IBIT and other low-cost alternatives, GBTC faced consistent outflows. This marked a broader trend: institutional investors now favor transparency, low fees, and efficient structures—setting a new standard for digital asset products.
ETH/BTC Ratio Hits Multi-Year Lows
While Bitcoin dominated headlines, Ethereum lagged. The ETH/BTC exchange rate fell to 0.033 in November—the lowest since March 2021—indicating strong relative underperformance.
Several factors contributed:
- Solana’s rise: Lower transaction costs and high-speed execution attracted traders during speculative mania, especially around meme coins.
- Meme coin frenzy: Platforms like Pump.fun fueled viral token launches on Solana, driving DEX volumes that occasionally surpassed Ethereum’s.
- Regulatory overhang: The SEC continued scrutinizing Ethereum staking as a potential securities offering, creating uncertainty that dampened institutional appetite.
Despite these headwinds, Ethereum remains foundational to DeFi and institutional-grade smart contract platforms.
Slow Start for Ethereum ETFs—But Momentum Builds
Ethereum ETFs launched in July with muted initial interest. Grayscale’s ETHE fund initially pressured the market with its 2% fee structure, leading to early outflows.
However, sentiment shifted post-election. As regulatory clarity improved and CME ETH futures saw rising open interest, new ETFs began attracting inflows by late November. Arbitrage strategies similar to those seen during BTC ETF launches re-emerged.
By December, total net inflows into ETH ETFs exceeded $2 billion—including over $3 billion withdrawn from ETHE. With a potential change in Washington’s regulatory stance, ETH could see clearer classification as a commodity—unlocking further institutional investment in 2025.
MicroStrategy’s Aggressive Bitcoin Accumulation
MicroStrategy made its boldest moves yet in 2024. The company purchased over 249,850 BTC, accelerating acquisitions after the U.S. election. Its holdings nearly doubled in a single month.
Funded through multiple convertible note offerings, this aggressive strategy drew scrutiny over leverage risks. Yet soaring BTC prices validated the approach—MSTR stock hit a 24-year high, surpassing its dot-com bubble peak.
Chairman Michael Saylor now describes MicroStrategy as the world’s first “Bitcoin treasury company.” His vision has inspired political proposals too: Senator Cynthia Lummis pledged to establish a U.S. strategic Bitcoin reserve if Trump returns to office.
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Liquidity Recovers After FTX Collapse
The so-called “Alameda Gap”—the liquidity vacuum left by FTX and Alameda Research’s collapse—has largely closed in 2024.
Bitcoin market depth (top 1% order book volume) now exceeds $120 million across major exchanges—surpassing pre-FTX levels. Kraken, Coinbase, and LMAX Digital led the recovery.
Notably, LMAX—a wholesale-focused exchange—reached a record $27 million in BTC depth, briefly overtaking Bitstamp as the third-largest liquidity provider. This resurgence reflects growing institutional participation and improved risk management across the industry.
Meme Coin Mania Takes Center Stage
Retail speculation exploded in 2024, particularly around meme coins. Solana became the epicenter thanks to Pump.fun, a user-friendly platform enabling anyone to launch tokens with organic virality.
Dogecoin regained popularity amid post-election optimism—especially after President-elect Trump announced plans to form a “Department of Government Efficiency” (D.O.G.E.) led by Elon Musk and Vivek Ramaswamy.
New tokens also captured attention. PNUT, inspired by Peanut the Squirrel—a viral New York pet influencer—turned a $16 investment into $3 million in realized profits for one trader. Now listed on major exchanges like Binance and OKX, PNUT exemplifies how internet culture and crypto finance increasingly converge.
Stablecoin Market Transformed by MiCA Regulation
Europe’s Markets in Crypto-Assets (MiCA) regulation reshaped the stablecoin landscape after its June enforcement.
Euro-pegged stablecoins underwent major changes. By November 2024, MiCA-compliant euro stablecoins—including Circle’s EURC, Société Générale’s EURCV, and Banking Circle’s EURI—held 91% market share.
Binance listed EURI in August and quickly became a key player alongside Coinbase. However, Coinbase still leads with 47% market share, driven by EURC adoption.
This shift highlights how clear regulation fosters innovation and trust—encouraging traditional financial institutions to enter the space.
Frequently Asked Questions (FAQ)
Q: What drove Bitcoin’s price surge in 2024?
A: The combination of spot ETF approvals, halving-induced scarcity, strong institutional inflows (led by BlackRock), and favorable U.S. election outcomes created powerful bullish momentum.
Q: Why did ETH underperform BTC?
A: Regulatory uncertainty around staking, competition from faster/cheaper chains like Solana, and slower ETF adoption contributed to Ethereum’s relative weakness.
Q: Are meme coins sustainable long-term?
A: Most are highly speculative, but platforms like Pump.fun have introduced new models for community-driven token launches—some of which may evolve into lasting projects.
Q: How did MiCA affect stablecoin usage?
A: MiCA increased compliance standards, leading to wider adoption of regulated euro-backed stablecoins like EURC and EURI while phasing out non-compliant alternatives.
Q: Is the Alameda liquidity gap fully closed?
A: Yes—market depth across top exchanges now exceeds pre-FTX levels, signaling restored confidence and stronger infrastructure.
Q: What’s next for crypto in 2025?
A: Expect broader asset adoption beyond BTC and ETH, clearer regulations globally, deeper institutional integration, and continued innovation in tokenization and DeFi.
Final Thoughts
2024 was the year crypto transitioned from fringe speculation to financial legitimacy. Institutional capital arrived at scale via ETFs, regulations matured in key markets like Europe, and public interest surged amid political engagement.
While Bitcoin led the charge, the ecosystem diversified—from meme-driven retail mania to corporate treasury strategies and regulatory-compliant stablecoins.
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As we look ahead to 2025, one thing is clear: digital assets are no longer an alternative investment—they’re becoming part of the financial mainstream.