Annual review: The core force driving the growth of the crypto market in 2024

Annual review: The core force driving the growth of the crypto market in 2024

In 2024, the cryptocurrency market has seen remarkable growth, with multiple tokens and projects emerging with technological breakthroughs, community support, and practical applications, redefining the future of the industry. From innovations in decentralized finance (DeFi) and Layer-1 blockchains to the deep integration of AI and blockchain, each track has demonstrated strong vitality and differentiated advantages. These trends not only highlight the huge potential for diversified development of the crypto market, but also open up a new window of opportunity for investors. However, in the process of pursuing high returns, investors need to be aware of the high volatility of the crypto market and carefully evaluate the actual value and long-term sustainability of each project.

Bitcoin

Bitcoin (BTC)

Categories: Store of Value, Digital Gold

Increase: +120% (broke through $100,000)

Drivers:

  • Institutional adoption: MicroStrategy, Tesla and other institutions continue to increase their Bitcoin holdings, and financial institutions and sovereign wealth funds continue to increase their recognition of Bitcoin.

  • Regulatory clarity: The approval of a Bitcoin ETF boosts market confidence and attracts more institutional investors.

  • Hedge against inflation: Bitcoin is seen as a hedge against fiat currency devaluation and geopolitical risks, especially in emerging markets.

Data performance:

  • Market capitalization: Bitcoin's market capitalization continues to remain above $2 trillion, dominating the market.

  • Price Growth: In 2024, the price of Bitcoin exceeds $100,000, setting a new all-time high.

Layer1

Ethereum (ETH)

  • Category: Smart Contract Platform, Layer1

  • Increase: +87%

Drivers:

  • Ethereum 2.0 Transition: The transition to a Proof-of-Stake (PoS) mechanism significantly improves network scalability and reduces energy consumption.

  • DeFi and NFT dominance: Ethereum remains the core platform for DeFi and NFT, and its ecosystem continues to grow.

  • Layer 2 solutions: The launch of Arbitrum, Optimism, etc. has increased transaction throughput and reduced transaction fees.

Data performance:

  • Market capitalization: Ethereum’s market capitalization peaked at nearly $450 billion, and DeFi’s total locked value (TVL) exceeded $100 billion.

  • Market share: Ethereum controls about 70% of the DeFi market share, and several leading platforms (such as Uniswap and MakerDAO) run on Ethereum.

Solana (SOL)

  • Category: High-speed blockchain, smart contract platform

  • Increase: +134%

Drivers:

  • Speed ​​and Scalability: Solana has become the preferred platform for DeFi, NFT, and Web3 applications with a throughput of 50,000 transactions per second and low transaction fees.

  • Institutional investment: Venture capital support from Andreessen Horowitz and other venture capital firms, integration with major platforms such as Google Cloud.

  • Ecosystem Growth: The rapid expansion of the Solana ecosystem covers multiple fields such as DeFi, NFT, and games.

Data performance:

  • Market capitalization: Solana’s market capitalization exceeds $110 billion.

  • Price Growth: Solana price surpassed $255, setting a new all-time high.

Sui ($SUI)

  • Category: Layer-1 blockchain

  • Increase: +516%

Drivers:

  • High scalability and low fees: Using the unique Move programming language, it provides a high-speed and low-cost transaction experience.

  • Grayscale Sui Trust: The partnership with Grayscale has significantly increased Sui’s awareness among institutional investors.

Data performance:

  • Sui's ecosystem has grown rapidly, attracting multiple developers and projects to join. It has established a stablecoin partnership with Binance. The ecosystem's TVL locked-in volume has increased by more than 6 times.

DEX & Middleware

Chainlink (LINK)

  • Category: Oracle, Data Layer for Smart Contracts

  • Increase: +80%

Drivers:

  • Key technical role: Chainlink provides decentralized oracles for smart contracts, ensuring seamless connection between blockchain and real-world data.

  • Partnerships: Collaborations with platforms such as Ethereum, Polkadot, and Solana strengthen its applications in cross-chain and decentralized finance (DeFi).

Data performance:

  • Market capitalization: Chainlink’s market capitalization exceeds $28 billion.

  • Use Case: Chainlink’s oracles power thousands of smart contracts, with total cross-chain transfer value exceeding $287 million.

Aerodrome ($AERO)

  • Category: Decentralized Exchange (DEX) Token

  • Increase: +2,083%

Drivers:

  • Innovative liquidity pool: The introduction of Slipstream liquidity pool has greatly increased the attractiveness of transactions and liquidity providers.

  • Base Network Integration: Integration with the Base Network provides solid technical support for DeFi transactions and token swaps, driving market performance.

Data performance:

  • Aerodrome’s innovative liquidity pool has made it a leader in the decentralized exchange space. The TVL locked has increased by more than 10 times.

AI Agent+MEME

Goatseus Maximus ($GOAT)

  • Category: AI&Meme Tokens

  • Increase: +415%

Drivers:

  • Integration of Artificial Intelligence: GOAT is more than just a typical Memecoin, it combines the functionality of AI and decentralized finance (DeFi) capabilities, enhancing its technological uniqueness.

  • Memecoin culture: As a member of Memecoin, GOAT is driven by the MEME "cultural boom" on the one hand, and on the other hand, it has formed differentiated competitiveness with traditional Memecoin by virtue of its interesting brand image and innovation combined with AI.

  • Community driven: GOAT further enhances the participation of community members in tokens and their loyalty to the project through a decentralized autonomous organization (DAO).

Data performance:

  • The daily trading volume of GOAT tokens hit an all-time high on multiple decentralized exchanges (DEX) and centralized exchanges (CEX), with the peak approaching $500 million, showing the market's high attention to it.

ELIZA

  • Category: Early Chatbot/AI Tokens

  • Increase: +23,873%

Drivers:

  • Technological Innovation: ELIZA is described as an open-source, modular architecture for building AI agents that interact seamlessly with users and blockchain systems, demonstrating its technological differences from other tokens.

  • Financial Incentives: 10% of tokens are allocated to platform users who have taken snapshots, showing ELIZA’s strategy of incentivizing community participation through a distribution mechanism.

  • Human-computer dialogue research: ELIZA was developed to study human-computer dialogue and the important cognitive processes of interpretation and misunderstanding.

Data performance:

  • After ELIZA went online, its market value exceeded 80 million US dollars in a short period of time, reaching a peak of 120 million US dollars, indicating the market's rapid acceptance and investment enthusiasm. The current offer is 62 million US dollars.

Virtuals Protocol (VIRTUAL)

  • Category: AI and Metaverse Protocol / AI Tokens

  • Increase: Up about 8043.52% in the past 90 days, with a market value of $2.44 billion.

Drivers:

  • Artificial Intelligence and Metaverse Integration: Virtuals Protocol is committed to transforming virtual interactions through its AI and Metaverse protocols, providing a co-owned, human-curated, plug-and-play gaming AI infrastructure.

  • Rapid Deployment of AI Agents: The project allows users to deploy their own AI agents (using their own tokens) in just 5 minutes, enhancing its appeal in the field of artificial intelligence and the metaverse.

Data performance:

  • The price of VIRTUAL tokens has recently reached a record high, with a market value of over $3 billion. VIRTUAL tokens are traded on several cryptocurrency exchanges including Bitget, BiKing, Hibt, BitMart and BingX

Animal MEME

Dogecoin ($DOGE)

  • Category: Meme Tokens

  • Increase: +356%

Drivers:

  • Star Effect: With support from celebrities such as Elon Musk, Dogecoin has gained wide recognition in social media and actual transactions.

  • Community Support: A strong and active community with ongoing development and activity keeps the token attractive.

Data performance:

  • Dogecoin's wide range of application scenarios, including micropayments and rewards, has driven its price up. Its market capitalization ranks first in the MEME sector.

dogwifhat ($WIF)

  • Category: Meme Tokens

  • Increase: +1,828%

Drivers:

  • Community-driven growth: Relying on strong community support and social media marketing, dogwifhat has quickly become one of the most popular meme tokens.

  • Decentralized characteristics: The decentralized management of tokens has attracted a large number of community members to participate, driving up the price of tokens.

Data performance:

  • Dogwifhat's community activity and decentralized nature have helped it become a popular project in the market, with a 24-hour trading volume approaching $1 billion.

Pepe ($PEPE)

  • Category: Meme Tokens

  • Increase: +1,794%

Drivers:

  • Strong community support: Pepe has expanded its market visibility through airdrops and community activities and has received massive community support.

  • Social Media Influence: Using the power of social media, Pepe attracted a lot of attention, driving up demand and prices.

Data performance:

  • Pepe's continuous community activities and social media marketing provide it with strong market momentum. Its market value has climbed to the third place in the MEME sector.

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