The previous year has been packed with significant events. From the halving of Bitcoin [BTC] to the green light for the Ethereum [ETH] Spot ETF, and from concerns over quantum computing to the brief dominance of Bitcoin in the headlines, here are some of the major highlights of the year.
A Glimpse into the Crypto Landscape this Year
Undoubtedly, the most notable milestone was the approval of the Bitcoin Spot ETF. Following some false alarms that triggered substantial price swings in BTC, including one reported by Cointelegraph in October 2023, the U.S. Securities and Exchange Commission (SEC) confirmed on January 10, 2024, the green signal for Spot Bitcoin exchange-traded products (ETFs).
The announcement sparked a frenzy on Crypto Twitter, with investors ecstatic about the prospect of BTC becoming accessible to a wider mainstream audience. The involvement of financial giants BlackRock and Fidelity as leading ETF providers added to the positive sentiment. Currently, they collectively possess 750k BTC.
Transitioning from a once niche asset, Bitcoin has now crossed over to public availability. The funds are being closely monitored and managed by some of the major financial entities globally. Michael Saylor, the Co-founder and former CEO of MicroStrategy, has been consistently accumulating Bitcoin, while other enterprises are also starting to amass BTC reserves.
The green light for the Ethereum Spot ETF has further strengthened the sector’s stance.
U.S. Presidential Election Puts Crypto in the Spotlight
The 2024 presidential race triggered extensive discussions about the candidates and the potential policies they would enact. Trump’s pro-crypto stance, appearances at industry gatherings, and commitment to advancing the cryptocurrency sector under his administration significantly boosted market sentiment.
The President-elect’s vow to establish the USA as the global crypto hub has resonated positively. Expected revisions in policies would aim to provide regulatory clarity. Furthermore, Trump publicly expressed intentions to dismiss SEC Chair Gary Gensler, a prominent crypto skeptic known for his stringent oversight measures. Gensler is set to step down on January 20, which coincides with Trump’s inauguration.
However, the realization of these pledges remains uncertain.
Emergence of Polymarket and other Prominent Markets
The cryptocurrency-based prediction market Polymarket gained traction during the elections, offering users opportunities for gains or losses based on global events. During the presidential race, it heavily favored Trump as the eventual winner, a prediction that materialized.
In late September, Trump and his three children unveiled World Liberty Financial, a decentralized finance (DeFi) money market platform. While enthusiasts welcomed this as a positive initiative, critics highlighted potential conflicts of interest. WLF’s transparent acquisition of crypto assets such as Chainlink [LINK] and Aave [AAVE] through the blockchain technology bolstered the prices of these tokens.
The broader DeFi domain has also been flourishing. The resurgence of DeFi is evident from the increasing total value locked (TVL) across multiple chains, nearing $120 billion at the time of writing and approaching the all-time high of $170 billion reached in late 2021 during the previous cycle.
Lastly, Uniswap [UNI], the largest decentralized exchange (DEX) on Ethereum globally, achieved record-breaking figures in November. Its monthly trading volume on a Layer-2 solution peaked at $38 billion, surpassing the $34 billion milestone set in March 2024.