Crypto 2024 Wrapped Up: A Year of Big Ambitions, Bold Decisions and New Highs

The year 2024 was when Bitcoin soared, AI transformed crypto enthusiasts, and memecoins became cultural icons. It felt like stepping into a sci-fi movie, where digital currencies broke new financial grounds and reshaped everyday life.

From record-breaking surges to never-thought-was-possible-before blockchain solutions, 2024 solidified crypto's place in the global financial landscape.

However, it was not all rosy. Challenges like regulatory crackdowns, market volatility, and cybersecurity threats were some of the most pressing pains this year.

As we close the chapter on this revolutionary year, walk with me as we reflect on the pivotal moments, trends, and challenges that defined crypto in 2024, one of the most historic years in crypto history.

A Market in Hyperdrive: The Rapidly Changing Crypto Market of 2024

The Bitcoin Bonanza

2024 will forever be remembered as the year Bitcoin achieved what once seemed impossible-breaking past the $100,000 mark with an ATH of over $108,000.

Source: btcath

What fueled this rally?

For starters, the long-awaited approval of spot Bitcoin ETFs in January 2024 drove massive amounts of traditional investments into the crypto space.

Also, the backdrop of rising global economic uncertainties and increasing inflation drove many to seek refuge in Bitcoin, which was eventually praised for its role as "digital gold."

Remarkably, the halving hype in April also gave Bitcoin a healthy bump. However, the real fireworks came after Donald Trump's re-election in October.

In the two weeks following the U.S. presidential election, Bitcoin prices shot up by an astonishing 45% as markets anticipated pro-crypto policies and global economic turbulence.

The surge sent ripples through the market, boosting altcoins like Ethereum and Solana as retail and institutional interest soared.

Now, let's touch on one of the most interesting parts of this year: Memecoins.

Memecoin Explosion: Dreams, Risks, and Riches

Over 3,000 new memecoins emerged in 2024, making up 75% of all memecoins in existence. Many things happened this year, getting the attention of many retailers as memecoins turned ordinary traders into overnight millionaires.

There's the epic story of $GOAT, where $700 became $2.4 million in just a few days. Then there was the saga of $MEW, where $35,000 skyrocketed into a staggering $44 million.

This guy turned $727 into $2.42M in just 4 days, a 3,329x return!😱

He spent 5 $SOL($727) to buy 15.15M $GOAT 4 days ago and sold 5.7M $GOAT for 5,949 $SOL($931K) in the past 8 hours, leaving 9.45M $GOAT($1.49M).https://t.co/GeXNlongIW pic.twitter.com/n5OEwZ1BEk

— Lookonchain (@lookonchain) October 15, 2024

In the memecoin ecosystem, Solana ( which captures 7.65% of the market) was the shining star, with tokens on this chain like $PENGU outpacing even the well-known $BONK in market cap.

On the other hand, Base (Coinbase L2 network) memecoins ( captures 2.13%), AI memecoins (1.49%), and cat-themed memecoins (1.19%) also left their mark.

Yet, beneath the excitement, there's a whisper of caution. Are we riding a bubble of hype, or is this the beginning of a new chapter where memecoins hold real, lasting value?

While many celebrity memecoins, in which 90% of these coins were rug pulled, plagued the ecosystem in 2024, the year saw an improvement beyond memecoin being just a speculative token driven by hype and FOMO. They demonstrated their influence beyond mere humor.

Think about Dogecoin, which Tesla hints at re-adopting as a payment option. Then there's Shiba Inu, which stepped up with Shibarium, a layer-2 scaling solution that slashed fees and staked a claim in DeFi's future.

2024 proved one thing: Memecoins are no longer just funny but formidable.

Tap-to-Earn: Bringing Crypto Rewards to Your Fingertip

This year, the crypto world experienced a revolution that didn't rely on complex strategies or huge investments but on simple taps. Telegram's tap-to-earn mini-games turned ordinary moments into opportunities for crypto gains, with just a few taps transforming your phone into a gateway to digital treasure.

Games like Notcoin, TapSwap, Hamster Kombat, and Blum Clicker led the charge, turning millions of users into miners of digital gold. With millions of active players, these games sparked a digital gold rush, where tapping didn't just entertain but reward players with real, valuable cryptocurrency.

Crypto Innovations That Led the Way in 2024

AI Meets Crypto

The fusion of AI and blockchain in 2024 created a refined and novel experience, with the AI in blockchain tokens standing at over $43 Billion market cap.

Source: Coingecko

Leading projects like Fetch.ai and Near Protocol set the pace, equipping users with tools that felt almost superhuman. With a few clicks, they can predict market trends with astonishing accuracy and automate portfolio management effortlessly.

Beyond trading, AI-powered fraud detection tools became the unsung heroes of 2024, rooting out scams, rug pulls, phishing schemes, and shady actors before they had a chance to spread.

While AI reshaped blockchain technology, blockchain also transformed the AI ecosystem. Blockchain offers a tamper-proof ledger to record transactions, track AI decisions alongside their data also distributes computing workloads across multiple machines, solving AI's resource-heavy demands. The innovations that are resulting from this combination are endless.

Ethereum's Layer 2 New Highs

In 2024, Ethereum entered a new era, solving its biggest challenge: scalability. Nearly 45% of new crypto startups focused on Layer 2 (L2) solutions, gradually making Ethereum from a slow, congested network into an efficient one.

This transformation was driven by key players behind a $31 billion surge in Total Value Locked (TVL) for L2 networks:

• Base: Coinbase's L2 became the fastest-growing, with 110 million users and $80 billion in assets. It processes 6.38 million transactions daily at fees as low as $0.15.
• Optimism: Optimism leads with 59% of L2 activity. It introduced cost-saving upgrades and boasts over 500 apps in its ecosystem.
• Arbitrum: Arbitrum dominated with $2.43B TVL. It powers DeFi, and transaction costs were slashed by 85%.
• zkSync Era: zkSync is at the forefront of zero-knowledge tech. It supports gaming and DeFi with $1.8B TVL and $0.08 transaction fees.

The New Normal: The Crypto Ecosystem's Regulatory Hurdles

The U.S. Election Effect

The 2024 U.S. presidential election marked a defining moment for cryptocurrency regulation. Donald Trump's victory sparked market optimism, with hopes of a more crypto-friendly policy landscape. While regulatory changes won't happen overnight, the election renewed confidence in the ecosystem, igniting discussions about a potential "golden era" for crypto in the United States.

Trump's campaign leaned heavily on support from the crypto industry, a sector he had largely overlooked until now. In return, he promised transformative policies to reshape U.S. crypto regulation, including:

• Crypto Stockpile: Preserve federal Bitcoin holdings seized from financial criminals.
• Regulatory Overhaul: Replace SEC leadership and establish a crypto advisory council.
• Domestic Mining: Promote U.S.-based Bitcoin mining to bolster energy dominance.
• Rate Cuts: Advocate for monetary easing to encourage crypto market growth.

Global Regulatory Shifts

In 2024, global efforts to align regulations with innovation reached new heights. The momentum in Asia was undeniable. However, in 2024, three key developments reshaped global crypto regulation:

• MiCA Regulation: The EU's Markets in Crypto-Assets (MiCA) regulation was implemented, providing one of the most comprehensive frameworks for cryptoassets. It introduced provisions on stablecoin issuance and new requirements for cryptoasset service providers (CASPs).
• Travel Rule Expansion: The Financial Action Task Force (FATF) extended the Travel Rule to crypto transactions, with jurisdictions like the EU, Singapore, and UAE starting to enforce compliance, ensuring better anti-money laundering practices.
• Stablecoin Regulation: Several jurisdictions, including the EU, Hong Kong, and Singapore, moved forward with frameworks to regulate stablecoins, focusing on liquidity requirements and investor protection.

However, notably the US saw limited progress on crypto legislation, with Congress stalling key bills like FIT21. Also, UK paused crypto initiatives under a new Labour government.

Institutional Confidence and Adoption

Regulatory clarity in 2024 sparked a wave of institutional adoption, with heavyweights like BlackRock and Fidelity making headlines by introducing Bitcoin spot ETFs and attracting billions in investments.

Traditional banks, including Goldman Sachs, Citigroup, HSBC, and JPMorgan, also embraced the blockchain revolution. They used the technology to streamline cross-border payments and manage digital assets with enhanced security, which is a vast shift from their earlier skepticism.

However, despite this momentum, the crypto industry continued to grapple with its own challenges, reminding everyone that the path to mainstream acceptance is never without obstacles.

Challenges: Security Issues, Hacks and Scams Persist

2024 reminded us that even in the world of decentralized tech, no fortress is completely impenetrable. A staggering $2.3 billion was pilfered through 303 hacks - a 21% jump from the year before.

Source: Chainalysis

The culprits? North Korea, with its cyber espionage prowess, accounted for over $1.3 billion of the loot through 47 meticulously planned breaches.

The crypto space saw its fair share of bumps, with scams and hacks continuing to exploit vulnerabilities in both DeFi protocols and centralized platforms.

Yet, it wasn't all gloom and doom. In the latter half of 2024, the crypto community doubled down on fortifying defenses, which resulted in a slowdown in the pace of these hacks.

Looking Forward: What's Next for Crypto in 2025?

2024 was wild, wasn't it? Breakthroughs, memes, and a resilience that's nothing short of inspiring. It's clear now more than ever that this space loves to surprise, innovate, and adapt.

The rollercoaster of 2024 sets the stage for 2025, where decentralization will challenge norms, open new frontiers, and ignite global innovation. 2025 could be the year Bitcoin breaks the next $200,000 mark, as many predictions are pointing towards that due to the grooming of a country-based strategic Bitcoin reserve and the incoming pro-crypto administration.