2024 Annual Report on the Encryption Industry: Market Value Exceeds $3.9 Trillion, Bitcoin Hits New High

In 2024, the cryptocurrency market will welcome the fourth round of a bull market, although the development trajectory differs from expectations. Market momentum is driven by multiple factors, including Bitcoin's fourth halving, adjustments in macroeconomic policies, and the approval of spot ETFs in the United States. These changes have brought cryptocurrencies back into the public eye, with the launch of ETFs opening new channels for capital injection. Bitcoin reached an all-time high of $108,135 on December 17, pushing the total market value of cryptocurrencies to a new record of $3.91 trillion.

This report provides an in-depth analysis of the encryption market landscape, the performance of Bitcoin and Ethereum, the development of the DeFi and NFT ecosystems, and the operational status of centralized and decentralized trading platforms. Here are seven key points:

1. In the fourth quarter of 2024, the total market value of the cryptocurrency market will increase by 45.7%, reaching $3.91 trillion, with an annual growth rate of 97.7%.

2. The dominance of the Bitcoin market has increased, accounting for 53.6% of the total value of the encryption market.

3. Bitcoin performs better than major asset classes throughout 2024 and in the fourth quarter.

4. The market value of AI agents surged by 322.2% in the fourth quarter of 2024, increasing from 4.8 billion USD to 15.4 billion USD.

5. In the fourth quarter of 2024, the top ten Ethereum Layer 2 platforms saw a 48.3% increase in trading volume, with one Layer 2 platform accounting for 48.3% of the trading volume.

6. In the fourth quarter of 2024, the centralized trading platform's spot trading volume reached $6.45 trillion, a quarter-on-quarter increase of 111.7%, setting a new historical high.

7. In the fourth quarter of 2024, a certain public chain will surpass Ethereum and become the dominant chain for DEX trading, accounting for over 30% of all DEX transactions.

1. The total value of the cryptocurrency market increased by 45.7% in the fourth quarter of 2024, reaching $3.91 trillion

In the fourth quarter of 2024, the total market value of the cryptocurrency market increased by 45.7% ($1.07 trillion), ultimately closing at $3.40 trillion. After a slowdown in momentum during the third quarter, the market rebounded in mid-fourth quarter, particularly after the announcement of the results of the U.S. presidential election.

In 2024, the total value of the cryptocurrency market nearly doubled, growing by 97.7%. In mid-December, the market cap reached a historic peak of $3.91 trillion, before falling back to $3.40 trillion. The average daily trading volume in the fourth quarter of 2024 was $200.7 billion, an increase of 128.2% compared to $88 billion in the third quarter.

2. Bitcoin market share rises, reaching 53.6% of the total value of the cryptocurrency market.

The market share of Bitcoin (BTC) continues to grow, with a 0.9% increase in the fourth quarter of 2024. XRP has performed the most prominently, with its market share rising to 3.5% (an increase of 2.0%), jumping from 7th place to 4th place, surpassing a certain encryption coin and a certain public chain token.

Dogecoin (DOGE) has recently ranked 7th in market capitalization, replacing a certain stablecoin. This is the first time since April 2021 that this stablecoin has failed to enter the top 7. At the same time, Ethereum (ETH) continues to decline in the fourth quarter, with its market share dropping from 13.4% in the third quarter to 11.8%, marking a new low since April 2021.

3. Bitcoin's performance in 2024 and the fourth quarter outperforms major asset classes

The fourth quarter of 2024 is a milestone for Bitcoin (BTC), breaking through the $100,000 mark for the first time, reaching a high of $108,135 on December 9, and then slightly retreating to close at $93,508 by the end of the year. The annual increase was 121.5%.

Bitcoin has been rising since the low point of $54,000 in the third quarter, significantly increasing again after the announcement of the results of the U.S. presidential election. This momentum is supported by the Federal Reserve's interest rate cuts, with the market generally expecting that loose monetary policy will continue to be implemented in 2025.

In the fourth quarter, the average daily trading volume soared from 31.1 billion USD in the third quarter to 62.6 billion USD, a month-on-month increase of 101.3%. On December 6, when Bitcoin surpassed 100,000 USD, the spot trading volume exceeded 190 billion USD, setting a new annual high.

The stock market performed strongly in the fourth quarter, with the Nasdaq index rising 8.0% and the S&P 500 index increasing by 3.0%. The US dollar index rose by 7.0%, mainly driven by the depreciation of other major currencies. The Japanese yen performed the worst, falling by 8.0%, almost erasing the gains from the end of the yen arbitrage trades.

4. AI agent market capitalization is expected to grow by 322.2% in the fourth quarter of 2024, reaching $15.5 billion.

The AI agent category rapidly emerged after a certain project was launched on a public chain in early October. Although the "truth terminal" pioneered AI agent KOLs in the X prototype, this narrative trend has largely faded. However, the market value of this category grew astonishingly in the fourth quarter of 2024, increasing from $4.8 billion to $15.5 billion, a growth rate of 322.2%.

Currently, two blockchains are the only platforms with significant AI agents. By the end of 2024, a certain Layer 2 has significantly captured the market share of a certain public chain through multiple projects. However, after the public chain launched a new project at the end of December, it has begun to reclaim some market share.

5. In the fourth quarter of 2024, the top ten Ethereum Layer 2 transaction volumes grew by 48.3%, with a certain Layer 2 accounting for 48.3% of the share.

Ethereum Layer 2 continues to grow in the fourth quarter of 2024, with the top ten Layer 2 platforms reaching an average daily transaction volume of 15 million. The increase in transaction volume is mainly driven by a certain Layer 2 platform, which achieved an average daily transaction volume of 7.2 million in the fourth quarter, a 78.7% increase from 4 million in the third quarter. In contrast, the average daily transaction volume on the Ethereum mainnet in the fourth quarter is approximately 1.2 million. In the fourth quarter, 48.3% of transactions among the top ten Layer 2 platforms occurred on this platform.

At the same time, a certain Layer 2 became the second largest active Layer 2, surpassing a certain Layer 2 platform, capturing 20.6% of the trading share in the fourth quarter, ahead of the latter's 13.7%. The trading volume of the former grew by 85.5% month-on-month, while the latter only increased by 14.0%. This significant growth is attributed to multiple DeFi protocols launching on this relatively new chain.

6. In the fourth quarter of 2024, the centralized trading platform's spot trading volume reached $6.45 trillion, setting a new record.

In the fourth quarter of 2024, the top ten centralized exchange (CEX) spot trading volume reached $6.5 trillion, a quarter-on-quarter increase of 111.7%. This is the first time quarterly trading volume has surpassed the $6 trillion mark. The total trading volume of the top ten CEXs in 2024 was $17.4 trillion, compared to $7.2 trillion in 2023.

A certain trading platform continues to maintain its dominant position, with a market share of 34.7% among the top ten CEXs at the end of December. Notably, the platform's trading volume exceeded $1 trillion in December, marking the second time it has reached this milestone in 2024.

A certain South Korean exchange platform is the fastest-growing CEX in the fourth quarter, with trading volume increasing from $135.5 billion to $561.9 billion, a quarter-on-quarter growth of 314.8%. Following South Korea's announcement of a state of emergency on December 3, the platform's trading volume surged. During this tumultuous period, the average daily trading volume reached approximately $21 billion, six times its usual daily average.

7. A certain public chain surpasses Ethereum, becoming the dominant chain for DEX trading in Q4 2024, accounting for over 30%.

In the fourth quarter of 2024, a certain public chain became the dominant chain for decentralized exchange (DEX) trading, with a market share exceeding 30%. In the fourth quarter, the trading volume of this public chain reached $219.2 billion, a month-on-month growth of 152.0%. In contrast, the trading volume of Ethereum was $184.3 billion, with a market share between 25% and 28%. Nevertheless, Ethereum still led the public chain for the whole year, accounting for 33.5% of DEX trading volume, while the latter had a market share of 25.2%.

At the same time, a certain Layer 2 successfully surpassed another Layer 2 in the fourth quarter, maintaining its leading position. Its market share exceeded 14% in the fourth quarter, while the latter remained between 10% and 11%. The former's market share reached 19.0% in December, with a month-on-month growth of 206.5%. The trading volume for the former was $116.7 billion, while the latter was $79.2 billion.

A certain public chain is the fastest-growing among the top ten chains, with a month-on-month growth of 232.7%. Its trading volume increased from 2.9 billion USD in the third quarter to 9.6 billion USD in the fourth quarter. By December 2024, this public chain's market share reached 2.1%, making it the sixth largest chain.