Blockchain technology exploded in 2024, reaching incredible new heights. Despite regulatory hurdles, adoption, transaction volume, and overall activity soared.
Transactions Through the Roof
The biggest news? Transaction volume hit a record-breaking $817 million in December 2024—a massive jump from previous highs. This translates to an annual run rate of a staggering $10 trillion! This level of activity is comparable to the peak seen back in 2021, showing blockchain’s growing importance in global finance.
Lower Fees, Wider Adoption
Another key factor driving this growth? Lower transaction fees. Fees plummeted from $2 billion in November 2021 to just $500 million by December 2024. This makes blockchain technology much more accessible and scalable for individuals and businesses alike, opening the door to countless new applications across various industries.
Navigating the Regulatory Landscape
2024 wasn’t without its challenges. The industry faced increased regulatory scrutiny, especially around decentralized finance (DeFi) and cryptocurrencies. However, blockchain continued its decentralized push, expanding its role in the global economy.
Regulatory Wins and Market Hype
A major boost came from the US Securities and Exchange Commission’s approval of a Spot Bitcoin ETF. This approval injected huge amounts of optimism and institutional investment into the crypto market. Bitcoin ETFs saw over $35 billion in net inflows by January 2024, with BlackRock’s IBIT leading the charge.
The US Presidential election also played a role. A certain candidate’s promises of clearer regulations and making the US the “crypto capital of the planet” further fueled market sentiment. By December, Bitcoin hit an all-time high of $108,135, contributing to a total cryptocurrency market cap of $3.9 trillion—a significant increase from $1.7 trillion in 2018.
