DWF 2024 Market Data Review: The total market value exceeded US$3.7 trillion, and the stablecoin supply hit a new high of 187.5 billion

Author: DWF Ventures

Compiled by: Shenchao TechFlow

2024 is shaping up to be a critical juncture in the development of cryptocurrencies - from the active participation of institutional investors to a significant increase in on-chain activity, the year showcases important advancements in the industry.

Here's a look back at the year's data:

Growth continues in 2023

The market has rebounded strongly this year, with the total market capitalization exceeding the 2021 all-time high (ATH) and reaching $3.7 trillion.

In addition to the significant increase in liquidity, the number of users and transaction volume are also growing simultaneously - these data indicate the healthy development of the market and the actual increase in usage.

The influx of ETFs and institutional money

One of the biggest market drivers in 2024 is the launch of the Bitcoin ETF in January and the Ethereum ETF in July. These financial products not only lower the threshold for investors to enter the crypto market, but also reflect the rapidly growing demand for crypto assets from traditional investors.

It is estimated that the total on-chain holdings of Bitcoin ETFs have grown to 1.1 million BTC, doubling compared to the beginning of the year.

Not only companies in the crypto space, but many traditional businesses are also increasing their investments in Bitcoin and other crypto assets. For example, @MicroStrategy led by Saylor continues to increase its investment in Bitcoin, and its current holdings have reached 439,000 BTC.

The potential of stablecoins

Stablecoins are core tools of the cryptocurrency ecosystem. Not only do they enable rapid exchange between assets, they are also seen as an important indicator of new capital inflows.

In 2024, the total supply of stablecoins will reach $187.5 billion, a record high. At the same time, the number of transactions and transaction volume of stablecoins increased by 30%-40% respectively.

It is worth mentioning that even in the face of market volatility, the trading volume of stablecoins has remained at a high level - indicating that stablecoins have important practical application scenarios beyond trading.

In terms of on-chain stablecoin transaction volume, @trondao , @ethereum , @BNBCHAIN , and @solana continue to dominate. And L2 networks like @arbitrum and @base are also showing strong momentum in USDC’s trading volume and user growth.

Although trading activity on centralized exchanges (CEX) currently remains ahead of decentralized exchanges (DEX), this landscape is changing.

The USDtb product recently launched by @BlackRock and @ethena_labs provides a safe and convenient way for traditional funds to enter DeFi. With the emergence of these regulated on-ramps, we may see more funds flowing into the on-chain ecosystem in the future.

The rise of stablecoin markets in Latin America and Africa

The stablecoin market size in Latin America and Africa has grown by 40%-50% in the past year. There is a strong demand in these regions for currency hedging instruments that do not require third-party trust, so the stablecoin market is developing rapidly here.

More and more resources are pouring into these regions, such as the educational project launched by @Tether_to and @circle ’s payment service expansion plan in Latin America. Therefore, we expect this segment to continue its strong growth momentum in 2025.

Trends in on-chain activity

L2 networks such as @base , @arbitrum , and @Optimism , as well as non-EVM chain @solana, have featured prominently in net inflows this year. Users are more likely to choose blockchain networks with lower transaction fees and faster speeds, and these chains therefore attract more users.

The fastest growing areas are perpetual contracts and decentralized exchanges (DEX). The trading volume in these two areas has increased by more than 150%, and the total locked volume (TVL) has also increased by 2-3 times. The memecoin craze triggered by @pumpdotfun has greatly promoted the increase in transaction volume, and @RaydiumProtocol has become one of the main beneficiaries, while also driving the development of other ecosystems. Furthermore, this trend has also given rise to the widespread use of trading bots such as @tradewithPhoton and @bonkbot_io . Not only are these bots used frequently, they have also become one of the protocols with the highest fee income in the current crypto industry.

Still, there is huge potential for growth in on-chain activity. Currently, only 5%-10% of cryptocurrency holders are actively participating in on-chain operations, which means there is a large untapped user base.

Mobile-friendly interfaces, such as TON's mini-app, have yielded significant results in terms of user growth. For example, @ton_blockchain ’s mini-app has successfully attracted over 50 million users. Therefore, future protocol development will increasingly rely on mechanisms to optimize user experience (UX) and improve user retention.