From Bitcoin booms to AI: 2024’s biggest crypto trends
Dive into the year’s biggest trends, from Bitcoin's ETF launch to the explosion of AI-powered blockchains.
5 min read
The market for crypto assets and the purchase of crypto assets constitute a high risk. Crypto assets are subject to high fluctuations in value, and there is no real underlying asset. Declines in value or a rapid, complete loss of the money spent are possible at any time. Past performance is not a reliable indicator of future performance. The values depicted above are fictional and for illustrative purposes only. The statements and illustrations do not constitute investment advice.This year has been all about evolution in the crypto space. We’ve watched as AI fused with blockchain, tokenization of real-world assets took off, and the German government shook the market with a huge Bitcoin sell-off. With Bitcoin and Ethereum ETFs breaking new ground and security becoming a hot topic, 2024 has paved the way for some serious changes. Here’s a look at the most impactful trends that defined crypto this year.
Crypto ETFs enter the market
This year, crypto hit a milestone with the introduction of Bitcoin and Ethereum ETFs. On January 10th, the SEC finally gave the green light to 11 spot Bitcoin ETFs, triggering a frenzy that saw over $2 billion pour in within a month. Regulators had long been cautious, but an August 2023 ruling forced their hand, and Bitcoin shot to an all-time high of $73,000 in March, and reaching the $100,000 milestone in December.And Ethereum wasn’t far behind. In July, spot Ethereum ETFs debuted, offering investors direct access to the asset. While the market's reaction was more of a slow clap than a cheer, with some investors cashing out early, this is far from the end of the story. According to Kavita Gupta, founder and partner at Delta Blockchain Fund, the launch of these ETFs could ignite the next altcoin rally, especially with major players eyeing Solana ETFs.
Tokenization takes off
The dream of converting real-world assets, like deposits or treasuries, into digital tokens on a blockchain became a reality this year. Financial giant Citibank converted client deposits into digital tokens for instant cross-border payments and better liquidity management. Meanwhile, BlackRock, the world’s largest asset manager, threw its hat into the ring with a tokenized U.S. Treasuries product, bringing the topic into the mainstream media for the first time.But why has RWA tokenization finally caught fire this year? According to Pritam Dutta, founder and chief executive of Zoth, it comes down to improved regulatory clarity and the buzz around Bitcoin ETFs. When big players like BlackRock and Franklin Templeton jump in, it gives traditional finance a confidence boost. Now, even Goldman Sachs plans to launch three tokenization projects by the end of 2024. The real magic here? Tokenization democratizes access to assets that used to be exclusive, like real estate and private equity — so everyday investors can get in on the action.
Blockchain gets smarter with AI
2024 also witnessed a game-changing fusion: the integration of artificial intelligence into blockchain technology. This powerhouse combo is revolutionizing industries by optimizing processes like fraud detection, smart contract automation, and market trend forecasting. For small and medium-sized enterprises (SMEs), this is a huge breakthrough. AI-driven tools on blockchain networks make it easier for businesses to manage supply chains, automate customer interactions, and boost overall efficiency without a massive team or budget. Plus, AI-powered smart contracts eliminate middlemen and foster trust between partners. That’s already poised to upend the way we handle automated payments and contract enforcement.
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2024 has been nothing short of a rollercoaster for the crypto world. From record-breaking highs to jaw-dropping sell-offs and some headline-grabbing legal dramas, this year has kept everyone on their toes. Let's look back at the stories that shook the market and defined the crypto landscape over the past 12 months.
FTX sentencing shockwaves
In March, the crypto world was shaken as FTX founder Sam Bankman-Fried (SBF) was found guilty of one of the biggest financial frauds in history, after swindling customers to the tune of $8 billion. He was handed a 25-year prison sentence and stripped of $11 billion in assets. By September, his former partner, Caroline Ellison, faced her own sentencing: two years in prison and another $11 billion in forfeiture. Her cooperation with prosecutors softened the blow, but the FTX collapse has left a lasting mark on the industry.
Bitcoin’s journey to $100,000
April 2024 saw the long-awaited Bitcoin halving, slashing the block reward from 6.25 BTC to 3.125 BTC. Contrary to expectations of a post-halving dip, Bitcoin soared to a record high of $73,000 in March — well before the event. This steady climb highlighted the network's resilience, with Bitcoin’s price breaking past the coveted $100,000 in December.
Major Bitcoin sell-offs: Germany and Mt. Gox
There was another shake-up in July as the German government sold 50,000 seized Bitcoins worth $3 billion, dragging Bitcoin’s price from $65,000 to a low of $53,905 over three weeks before it rebounded. Meanwhile, the defunct Mt. Gox exchange began distributing $9 billion in Bitcoin to creditors, adding more sell pressure. These massive sell-offs underscore how sudden influxes can rattle the market’s balance.
Crypto hacks soar
2024 set a new, unfortunate record for crypto hacks, with losses soaring to $2.114 billion by September — a staggering 72% increase from the previous year. While decentralized finance (DeFi) platforms saw a slight drop in losses, centralized finance (CeFi) platforms faced a nearly 1,000% surge in attacks. As these numbers highlight, there’s an urgent need for better security measures to tackle the growing vulnerabilities in the crypto space.
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