2024 Crypto Market Year in Review: Key Trends and Analysis

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The 2024 Bitcoin halving marked the beginning of the fourth cryptocurrency bull market cycle, although it unfolded differently than many anticipated. Market momentum was heavily influenced by macroeconomic policy shifts, including the approval of U.S. spot ETFs, central bank interest rate cuts, and the U.S. presidential election outcome. These developments brought cryptocurrencies back into the mainstream spotlight following the FTX collapse, with ETFs providing new channels for capital inflow. Bitcoin reached a new all-time high of $108,135 on December 17, pushing the total crypto market capitalization to a record $3.91 trillion.

This review covers key trends across the crypto market landscape, including Bitcoin and Ethereum performance, decentralized finance (DeFi), non-fungible tokens (NFTs), and centralized (CEX) and decentralized exchange (DEX) activity.

Here are the seven major highlights from the year:

  1. The total crypto market cap grew by 45.7% in Q4, reaching $3.91 trillion by year-end—a 97.7% increase year-over-year.
  2. Bitcoin increased its market dominance, accounting for 53.6% of the total crypto market cap.
  3. Bitcoin outperformed major asset classes both for the full year and in the fourth quarter.
  4. The AI agent sector’s market cap grew by 322.2% in Q4, rising from $4.8 billion to $15.5 billion.
  5. Trading volume on the top 10 Ethereum Layer 2 networks grew 48.3% in Q4, with Base accounting for 48.3% of all L2 volume.
  6. Spot trading volume on centralized exchanges reached $6.45 trillion in Q4, a 111.7% quarter-over-quarter increase, setting a new all-time record.
  7. Solana surpassed Ethereum as the leading chain for DEX trading in Q4, accounting for over 30% of all DEX transactions.

Crypto Market Cap Climbs to $3.91 Trillion

The total cryptocurrency market capitalization increased by 45.7% in the fourth quarter, adding $1.07 trillion to end the year at $3.40 trillion. After losing some momentum in Q3, the market rebounded in the latter part of the year, particularly following the U.S. presidential election.

For the full year, the crypto market cap nearly doubled, rising 97.7%. It reached an all-time high of $3.91 trillion in mid-December before moderating. Average daily trading volume in Q4 reached $200.7 billion, a 128.2% increase from $88.0 billion in Q3.

Bitcoin Dominance Rises to 53.6%

Bitcoin's market share continued to climb, albeit at a slower pace, increasing by 0.9% in Q4. XRP showed the most notable growth, rising to 3.5% of the total market cap—a 2.0% gain. This pushed XRP from 7th to 4th place, surpassing both BNB and Solana (SOL).

Dogecoin (DOGE) also entered the top seven cryptocurrencies by market cap, displacing USDC. This marked the first time since April 2021 that USDC was not among the top seven assets. Meanwhile, Ethereum’s dominance continued to decline, falling from 13.4% in Q3 to 11.8% in Q4—its lowest level since April 2021.

Bitcoin Outperforms Traditional Assets

Q4 was a milestone quarter for Bitcoin as it broke the $100,000 barrier for the first time, reaching an all-time high of $108,135 on December 9 before closing the year at $93,508. This represented a year-to-date gain of 121.5%.

Bitcoin’s rally began from a Q3 low of $54,000, with another significant surge occurring after the U.S. presidential election. The upward momentum was further supported by Federal Reserve rate cuts and expectations of continued monetary easing in 2025.

Average daily trading volume also surged, rising 101.3% from $31.1 billion in Q3 to $62.6 billion in Q4. On December 6, the day Bitcoin surpassed $100,000, spot trading volume exceeded $190 billion, setting a yearly record.

Traditional equity markets also performed strongly in Q4, with the Nasdaq gaining 8.0% and the S&P 500 rising 3.0%. The U.S. Dollar Index (DXY) rose 7.0%, largely driven by depreciation in other major currencies. The Japanese Yen (JPY) was the worst-performing major currency, falling 8.0% in Q4.

AI Agent Sector Sees Explosive Growth

The AI agent category emerged rapidly in early October with the launch of GOAT on Solana. Although early narrative momentum faded, the sector’s market capitalization grew an astonishing 322.2% in Q4, from $4.8 billion to $15.5 billion.

Currently, Solana and Base are the only blockchains with significant AI agent activity. Base gained considerable market share through projects like AIXBT and Virtuals Protocol (VIRTUAL), though Solana began reclaiming momentum in December with new entrants like GRIFFAIN and AI Rig Complex (ARC).

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Base Leads Ethereum Layer 2 Growth

Ethereum Layer 2 networks continued expanding in Q4, with the top 10 L2s processing an average of 15 million daily transactions. This growth was largely driven by Base, which averaged 7.2 million daily transactions in Q4—a 78.7% increase from 4.0 million in Q3. By comparison, the Ethereum mainnet processed approximately 1.2 million daily transactions during the same period. Base accounted for 48.3% of all L2 transactions in Q4.

Taiko emerged as the second most active L2, surpassing Arbitrum with 20.6% of transaction share compared to Arbitrum’s 13.7%. Taiko’s transaction volume grew 85.5% quarter-over-quarter, while Arbitrum saw only 14.0% growth. Taiko’s rapid expansion can be attributed to several new DeFi protocol launches on the chain.

Centralized Exchange Volume Hits All-Time High

Spot trading volume on the top 10 centralized exchanges (CEXs) reached $6.5 trillion in Q4, a 111.7% increase from the previous quarter. This marked the first time quarterly volume exceeded the $6 trillion threshold. Total annual volume for the top CEXs reached $17.4 trillion in 2024, compared to $7.2 trillion in 2023.

Binance maintained its dominant position, ending December with a 34.7% market share among the top 10 exchanges. Notably, Binance’s monthly trading volume exceeded $1 trillion in December—the second time it reached this milestone in 2024.

Upbit was the fastest-growing exchange in Q4, with volume growing 314.8% from $135.5 billion to $561.9 billion. Trading activity surged significantly following political announcements in South Korea, with daily volume reaching approximately $21 billion during periods of heightened volatility—six times its normal average.

Solana Overtakes Ethereum in DEX Trading

In Q4 2024, Solana became the leading blockchain for decentralized exchange trading, capturing over 30% of total DEX volume. Solana’s quarterly volume reached $219.2 billion, a 152.0% increase from the previous quarter. Ethereum processed $184.3 billion in volume, maintaining a market share between 25% and 28%. On an annual basis, however, Ethereum remained ahead with 33.5% of all DEX volume, compared to Solana’s 25.2%.

Base surpassed Arbitrum to secure the third position among DEX chains, achieving over 14% market share in Q4 compared to Arbitrum’s 10–11%. The Coinbase-supported L2 saw volume grow 206.5% quarter-over-quarter, reaching $116.7 billion compared to Arbitrum’s $79.2 billion.

Tron was the fastest-growing chain among the top ten, with volume increasing 232.7% from $2.9 billion in Q3 to $9.6 billion in Q4. By December, Tron held a 2.1% market share, making it the sixth-largest DEX chain.

Frequently Asked Questions

What was the total cryptocurrency market capitalization at the end of 2024?
The total crypto market cap reached $3.91 trillion in December 2024 before closing the year at $3.40 trillion. This represented a 97.7% increase from the beginning of the year.

Which blockchain led in decentralized exchange trading volume?
Solana surpassed Ethereum in DEX trading volume during the fourth quarter, accounting for over 30% of all transactions. Ethereum remained the annual leader with 33.5% of total volume.

How did Bitcoin perform compared to traditional assets?
Bitcoin outperformed major stock indices and currencies in 2024, with a year-to-date gain of 121.5%. It reached a new all-time high of $108,135 in December.

What drove growth in AI-related crypto tokens?
The AI agent sector grew 322.2% in Q4, fueled by new projects on Solana and Base blockchains. Initial interest was driven by AI-powered trading tools and social media applications.

Which centralized exchange saw the highest growth in Q4?
Upbit recorded the highest growth among major exchanges, with trading volume increasing 314.8% quarter-over-quarter. This surge was largely driven by market volatility in South Korea.

How did Ethereum Layer 2 networks perform in Q4?
The top 10 Ethereum L2s saw daily transactions reach 15 million, led by Base which accounted for 48.3% of all L2 volume. Taiko also grew significantly, surpassing Arbitrum in transaction share.

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