2024 Crypto Market Review and 2025 Outlook

2024 is a milestone year in the history of cryptocurrency. Centered around two core topics, ETFs and the US elections, the crypto industry has successfully achieved breakthroughs, primarily leveraging Bitcoin. Publicly listed companies, traditional financial institutions, and even national governments have entered the market, significantly increasing the degree of mainstream acceptance and recognition. The regulatory environment has also become clearer and more relaxed with the new government taking office. Mainstream integration, path differentiation, and regulatory evolution have become the main themes of the industry this year.

2024 Review: Bitcoin Reaches New Heights, Ethereum Under Pursuit, MEME Gains Attention

Looking at the major developments in the industry this year, Bitcoin is undoubtedly the core narrative. The ETF and national reserves have propelled Bitcoin to break through the $100,000 mark, marking that Bitcoin has surpassed the connotation of cryptocurrency and become a globally recognized anti-inflation asset and store of value. Bitcoin is gradually moving from digital gold to a super-sovereign currency, and this financial experiment that started with Satoshi Nakamoto has achieved a stage victory. On the other hand, the Bitcoin ecosystem has expanded this year, with applications in DeFi, NFT, gaming, and social continuing to develop. The locked value in Bitcoin DeFi has skyrocketed from $300 million at the beginning of the year to $6.755 billion, growing more than 20 times over the year.

Ethereum is facing considerable pressure this year. Compared to other assets, its value capture and user activity have declined, and its narrative strength is not as strong as before. Although the revival of DeFi is loudly proclaimed, actual investment is clearly insufficient. However, the emergence of the dark horse in derivatives, Hyperliquid, at the end of the year has brought new hope to DeFi. On the other hand, the rapid development of the Ethereum Layer 2 ecosystem is continuously eating away at the mainnet's share, sparking discussions in the market about Ethereum's mechanisms.

Solana has risen strongly this year. In terms of TVL, Solana has jumped from nearly zero at the beginning of the year to 6.9% by the end of the year, becoming the second largest public chain after Ethereum. The price of SOL has created a growth miracle, soaring from $6 two years ago to $200 now, with an increase of over 100% just this year. Solana, with its advantages of low cost and high efficiency, has targeted core liquidity positioning and, relying on Degen culture, has become the undisputed king of MEME.

MEME has become a major driving force in the market this year. The connotation of MEME is continuously expanding, evolving from a single speculative target to a representative of cultural finance. Although MEME only accounts for about 3% of the market capitalization of the top 300 cryptocurrencies, its trading volume consistently occupies 6-7% of the share. The infrastructure surrounding MEME is also continuously improving, such as the emergence of the fair launch platform Pump.fun.

At the end of the year, AI has once again become a hot topic in the Web3 field. Truth Terminal has ignited the MEME craze, driving AI Agents to become the new application frenzy. Currently, the deep integration of AI and blockchain is still relatively scarce, but opportunities and risks coexist.

Stablecoins and RWAs are the highlights in the PayFi sector this year. Stablecoins hold a significant place in the global payments and remittances market, with a current circulating value of over $210 billion. RWAs were ignited after BlackRock announced its entry, with a scale that has expanded to $14 billion.

2025 Outlook: New Cycle, New Applications, New Directions

Looking ahead to 2025, with the new government coming to power, the encryption industry is expected to welcome new development opportunities. Many institutions hold an optimistic view of the market for next year, generally expecting a rise in Bitcoin prices.

From a specific sector perspective, stablecoins, tokenized assets, and AI are the areas of greatest interest to institutions. The settlement volume of stablecoins is expected to exceed $300 billion, and the value of tokenized securities may surpass $50 billion. The combination of AI and encryption will bring new application scenarios, such as AI agents equipped with crypto wallets.

The revival of DeFi, integration of application chains, and the popularization of ZK technology are also seen positively by institutions. Overall, the crypto industry is expected to continue to develop favorably in terms of price, ecosystem, and mainstream adoption by 2025.

For investors, the price increase of mainstream coins seems almost certain, but the altcoin market will continue to diverge. New consumer-grade applications and infrastructure are worth paying attention to. Tracks favored by institutions, such as stablecoins, AI, and RWA, may accelerate their development. In the new cycle, in-depth research and active participation remain the best choices for investors.