The rise of Bitcoin: new opportunities to increase liquidity

Cryptocurrency moves fast – blink and you’ll miss it.

The first half of this year has been no exception, with new chains and applications emerging every day and the crypto industry gaining mainstream acceptance in the financial community.

Amid the madness of Twitter echo chambers and bull market price action, it’s easy to lose sight of the bigger picture. So let’s zoom out and focus on the signal amid the noise.

Crypto is just beginning; don’t be swayed.

Today, we’ll review key developments from the first half of 2024, exploring the significant events and trends that highlight the progress we’ve made this year.

1. Cryptocurrency is now mainstream

Remember the days when cryptocurrency was a niche plaything of cypherpunks? Those days are gone.

In the first half of 2024, cryptocurrencies will strongly break into the mainstream.

The turning point was the long-awaited approval of a spot Bitcoin ETF in January. Suddenly, Wall Street had a comfortable entry point into cryptocurrencies, and they moved in aggressively. Eleven ETFs were launched in one day, and trading volumes broke records.

And it didn’t stop with Bitcoin. The U.S. Securities and Exchange Commission (SEC) eventually approved eight spot ETH ETFs in May, further validating the entire cryptocurrency ecosystem and opening the door to broader institutional adoption.

It’s not just ETFs. Fortune 500 companies are jumping in, too. An all-time high of cryptocurrency projects are launching, ranging from consumer payments to tokenized treasure to who knows what.

What’s the bottom line? Cryptocurrency is no longer on the fringe. It’s embraced by the biggest names in finance, from Wall Street to Silicon Valley. The future of finance is cryptocurrencies, and everyone knows it.

2. Cryptocurrency adoption accelerates

Cryptocurrency adoption is accelerating at an alarming rate. The number of active users of various blockchains has grown significantly, with active addresses reaching a record high of 42.92 million in April.

This suggests that users can do something meaningful on-chain. One factor could be the proliferation of different types of applications and services in the crypto ecosystem, from social networking applications like Farcaster, Friend.tech, and Fantasytop, to new chains and innovative DeFi primitives like Restake.

Another factor is the resurgence of DeFi. DeFi activity and attention are rising again, signaling a new interest and activity on the chain that is moving beyond simple speculation and may be moving towards some real-world utility, such as stablecoins for payments and asset tokenization of RWAs (such as government securities).

The momentum is clear: more and more people are coming to the chain, and they are finding more reasons to stay.

3. Ethereum is still dominant, but Solana is on the rise

Ethereum remains the dominant force in the cryptocurrency space. More than 60% of the total value locked in DeFi is on Ethereum, proving that the lindy ecosystem is the foundation for countless applications and chains.

This dominance is not only a matter of capital, but also a matter of technological advancement on the roadmap. Ethereum is scaling through L2s like Base, has seen widespread adoption this year, and offers users significantly lower gas fees thanks to the recent Dencun upgrade.

However, crypto is now more than just Ethereum and its ecosystem. Today, we have ecosystems like Solana that are making impressive progress.

Forget the hype for a moment and let’s focus on the numbers. Solana’s daily active users are 2-3x higher than they were this time last year, near the peak of the 2021 frenzy. This user growth isn’t just a vanity metric; it’s a meaningful one. It translates into real usage — Solana’s DEX volume has even surpassed Ethereum multiple times this cycle as it has become a powerhouse for memecoin trading.

Additionally, Solana’s innovation engine is firing on all cylinders. Technical advances like zk-compression and user-friendly features like Blinks are laying the foundation for broader adoption, and we can see Solana’s network effects taking root in real time.

Make no mistake: Ethereum isn’t going away. Its established network effects and massive developer community ensure its continued relevance in the crypto space. But Solana’s impressive progress can’t be ignored. Both ecosystems are thriving in unique ways. This parallel adoption is a win for cryptocurrency users because it accelerates innovation and moves the entire industry forward.

4. Cryptocurrency hits new highs

Bitcoin hit a new all-time high in March, briefly topping the $70,000 mark. While the highs seemed to end abruptly, let’s not get carried away. This bull run is far from over.

Let’s be honest, we’ve all been a little euphoric lately, haven’t we? Cryptocurrencies are hitting all-time highs, memecoins are booming, and every celebrity is giving away their tokens. The bottom line is: sentiment may have pulled back significantly, but the long-term crypto outlook remains positive.

The long-awaited ETH ETF is on the horizon, interest rate cuts may be on the horizon, and cryptocurrencies may continue to gain a place on the U.S. national stage heading into an election with potentially positive policy shifts.

This pullback may feel like the end, but in the crypto space, it is often a buying opportunity. So unless you are facing a margin call, maybe hold on and enjoy the ride.

Summarize

So, is it all smooth sailing for the cryptocurrency space in the first half of 2024? Not exactly.

We’ve seen our fair share of noise — regulatory FUD, narrative bubbles, memecoin mania, celebrity coins, volatile price action, and airdrops that don’t quite hit the mark.

However, things are looking much brighter. Cryptocurrency adoption is rapid, institutional interest is at an all-time high, and the regulatory environment is improving. All of these signs point to continued growth in the industry as fundamentals are strong and future catalysts are already in play.