Originally published on: October 15, 2024
The year 2024 has witnessed a significant maturation of the cryptocurrency market, with substantial inflows of billions of dollars into spot crypto exchange-traded funds (ETFs) and a surge in transaction volume on blockchain networks. A recent report by Coinbase and Glassnode highlights this remarkable transformation.
According to the report, authored by David Duong, Coinbase’s head of institutional research, and Glassnode’s analyst team, the crypto market has become deeper, more liquid, sophisticated, and accessible. The runaway success of spot ETFs, increasing on-chain activity, and rising trading volumes all point towards this newfound maturity.
Moreover, the report emphasizes the growing adoption of stablecoins and the proliferation of Ethereum layer-2 scaling solutions as indicators of the market’s maturation and the expansion of the crypto economy.
In 2024, investors have shown a preference for higher-quality assets, leading to a reduction in market volatility. The data reveals that Bitcoin’s three-month spot price volatility has decreased to less than 60%, from a peak of nearly 130% in 2021.
During the third quarter of 2024, stablecoins and BTC accounted for a larger share of the crypto market capitalization, with spot BTC ETFs attracting approximately $5 billion in inflows. Additionally, stablecoins reached an all-time high market capitalization of around $160 billion, showcasing their growing utility in various use cases.
While Ether ETFs experienced net outflows, the Ethereum ecosystem continued to expand rapidly, driven by the strength of new layer-2 solutions. Daily active Ethereum addresses and transactions saw significant increases compared to the previous year, with the emergence of platforms like Coinbase’s Base contributing to this growth.
Furthermore, ETH reclaimed a considerable share of fees among fee-earning L1 blockchains, rebounding from a low of 9% to 40% in late September. These developments underscore the evolving landscape of the crypto market in 2024.
From the surge in ETF investments to the rise of stablecoins and innovative layer-2 solutions, the crypto market in 2024 has indeed matured dramatically, paving the way for a more resilient and dynamic ecosystem.
