Cryptocurrency is developing rapidly, almost like a blink of an eye. This year’s first half is no exception, with new chains and applications emerging daily, and the crypto industry gaining mainstream recognition in the financial world. Amid the echo chamber of Twitter and the frenzy of bull market price trends, it’s easy to overlook the bigger picture. Therefore, let’s narrow the focus and pay attention to the signals amidst the noise. Crypto is just getting started; don’t be shaken.
Today, we will review the major developments of the first half of 2024 and explore significant events and trends that stand out this year.
1. Cryptocurrency has now gone mainstream
Do you still remember the days when cryptocurrency was a niche hobby for cypherpunks? Those days are long gone. In the first half of 2024, cryptocurrency made a strong breakthrough into the mainstream. The turning point was the long-awaited approval of a Bitcoin ETF in January. Suddenly, Wall Street had a comfortable entryway into cryptocurrency, leading to the launch of 11 ETFs in a single day and record-breaking trading volume. The approval of 8 spot ETH ETFs by the U.S. Securities and Exchange Commission (SEC) in May further validated the entire cryptocurrency ecosystem, opening the doors to broader institutional adoption. Not only ETFs, but also Fortune 500 companies have joined in launching cryptocurrency projects, reaching a historic high in the number of projects, from consumer payments to tokenized treasures and beyond. The bottom line is that cryptocurrency is no longer on the fringes and is welcomed by financial heavyweights from Wall Street to Silicon Valley. The future of finance is cryptocurrency, and everyone knows it.
2. Cryptocurrency adoption is accelerating
The adoption of cryptocurrency is accelerating at an astonishing pace. The number of active blockchain users has significantly increased, reaching a historic high of 42.92 million active addresses in April. This indicates that users can now do meaningful activities on the blockchain. One factor contributing to this could be the surge in different types of applications and services within the crypto ecosystem, from social networking applications like Farcaster, Friend.tech, and Fantasytop, to new chains and innovative DeFi primitives like restake. Another factor is the resurgence of DeFi, with increased activity and attention indicating new interests and activities on the blockchain that may go beyond simple speculation, potentially turning towards real-world utility such as stablecoins for payments and tokenizing real-world assets (e.g., government securities).
The momentum is clear: more and more people are coming to the blockchain, and they are finding more reasons to stay.
3. Ethereum still dominates, but Solana is rising
Ethereum remains the dominant force in the cryptocurrency space. Over 60% of the total value locked in DeFi is on Ethereum, proving its status as the foundation for countless applications and chains. This dominance is not just a matter of capital, but also of technical progress on the roadmap. Ethereum is scaling through Layer 2 solutions like Base, which has seen widespread adoption this year, and with the recent Dencun upgrade, it offers significant reductions in gas fees for users. However, cryptocurrency is not just about Ethereum and its ecosystem anymore. We now have ecosystems like Solana, which is making impressive strides. Forget the hype for a moment and focus on the numbers. Solana’s daily active user count is 2-3 times higher than the same period last year, approaching the peak of the 2021 frenzy. This user growth is not just a vanity metric; it translates into real use cases—Solana’s DEX trading volume has even surpassed Ethereum’s multiple times in this cycle, as it has become the hub for memecoin trading. Furthermore, Solana’s innovation engine is running hot, with technological advancements like zk compression and user-friendly features like Blinks laying the foundation for broader adoption, and we can see the network effects of Solana taking root in real-time.
Undoubtedly, Ethereum will not disappear. Its established network effects and massive developer community ensure its continued relevance in the crypto space. But Solana’s impressive progress cannot be ignored. Both ecosystems are thriving in their unique ways. This parallel adoption is a victory for cryptocurrency users, as it accelerates innovation and drives the entire industry forward.
4. New highs in cryptocurrency
Bitcoin broke historic highs in March, briefly surpassing the $70,000 mark. Although the peak seemed to end abruptly, let’s not get carried away. This bull market is far from over. To be honest, we’ve all been a little euphoric recently, haven’t we? Cryptocurrency reaching historic highs, meme coins booming, and every celebrity abandoning their token. The key point is: while market sentiment may have dropped significantly, the long-term prospects for cryptocurrency remain optimistic. The long-awaited ETH ETF is on the horizon, a rate cut may be imminent, and cryptocurrency may continue to gain a foothold on the national stage in the United States with potential positive policy shifts from elections.
This pullback may feel like the end, but in the cryptocurrency space, it’s often a buying opportunity. So, unless you’re facing a margin call, perhaps you can stick around and enjoy this journey.
In conclusion, was the first half of 2024 smooth sailing for the cryptocurrency space? Not entirely. We’ve seen quite a bit of noise—regulatory FUD, narrative bubbles, meme coin frenzy, celebrity coins, volatile price trends, and airdrops that missed the mark. But things are looking much brighter. Cryptocurrency adoption is accelerating rapidly, institutional interest is at an all-time high, and the regulatory environment is improving. All these signs indicate that the industry will continue to grow, as the fundamentals are strong, and future catalysts are already at work.
