Crypto’s Three Narratives in 2024

Crypto experienced three distinct stories in 2024.

Bitcoin ETF Boom

The first narrative began with the approval of 11 spot bitcoin ETFs in the U.S., which led to inflows of $53 billion and accumulated trading volume of $600 billion. This triggered more ETF approvals in Hong Kong and Ethereum ETFs in the U.S., though with lower trading volumes. Crypto gained traction in U.S. politics, marking a milestone in its mainstream acceptance.

However, a key concern arose around crypto ‘selling out.’ Originating from libertarian ideals, the industry increasingly relied on entities willing to stabilize prices, such as ETF investments, MicroStrategy’s bitcoin acquisitions, and even potential U.S. government bitcoin reserves. Ultimately, it became all about the increase in value.

Memecoin Mania

Simultaneously, while bitcoin and ether made strides on Wall Street, the broader ecosystem engaged in a memecoin frenzy. The platform Pump.fun, launched at the year’s start, allowed users to effortlessly create tokens. It was a major success, with 4.8 million tokens created and 866 tracked on CoinGecko, representing a combined market cap of $6.8 billion. Notable creations included tokens named after Peanut the Squirrel and Moo Deng the hippopotamus, as well as various AI-related tokens and the infamous fartcoin. Tokens moving to decentralized exchanges like Raydium reached daily trading volumes of $2.5 billion.

Pump.fun also introduced live streaming for token creators, leading to bizarre antics to spark token price increases, before eventually removing the feature due to excessive behavior.

Technological Progress Amidst Chaos

The third narrative involved technology innovation amidst the memecoin frenzy. Notable successes included Hyperliquid, a hybrid exchange that performed well due to incentivizing volume with a points program, leading to a successful token launch.

Furthermore, games on the messaging platform Telegram gained traction, starting with Notcoin and evolving into more clicker games and continued airdrops, despite mixed reviews.

ZKsync made strides toward decentralization with its own token launch, while developments occurred in Ethereum’s scaling strategy and consensus layer. Key events of 2024 also included Bitcoin’s halving in April and the launch of Monad’s testnet.

In conclusion, while the crypto industry may have diluted its original ethos in 2024, it also demonstrated significant innovation and excitement.