Crypto trends 2024: Swing states, AI and builder energy

Crypto’s surge to mainstream prominence: The 2024 State of Crypto Report reveals unprecedented levels of cryptocurrency activity and adoption, signaling a pivotal moment for the digital asset industry.

• Monthly active crypto addresses reached a record 220 million in September 2024, highlighting the expanding user base.
• Mobile crypto wallet users climbed to 29 million monthly in June 2024, indicating increased accessibility and convenience.
• Estimates suggest between 30-60 million monthly active crypto users worldwide, demonstrating the global reach of digital assets.

Political landscape shift: Cryptocurrency has emerged as a key issue in the upcoming U.S. election, reflecting its growing influence on economic and policy discussions.

• Swing states like Pennsylvania and Wisconsin have experienced significant increases in crypto-related search interest, potentially impacting voter priorities.
• Bitcoin and Ethereum Exchange-Traded Products (ETPs) now hold a substantial $65 billion in assets, showcasing institutional adoption.
• Stablecoins have become a top 20 holder of U.S. debt, underscoring their integration into the broader financial system.

Stablecoin dominance: These digital assets pegged to traditional currencies have found a strong product-market fit, revolutionizing transactions and challenging established payment systems.

• Stablecoin transaction volume reached $8.5 trillion in Q2 2024, surpassing Visa’s volume by more than twofold.
• Stablecoins now represent 32% of daily crypto usage, indicating their central role in the ecosystem.
• Transaction costs have plummeted, with USDC transfers on Ethereum averaging less than $1, making stablecoins an attractive option for everyday transactions.

Infrastructure advancements: Significant improvements in blockchain technology have dramatically increased capacity and reduced costs, paving the way for wider adoption.

• Blockchain networks are now processing 50 times more transactions per second compared to four years ago, addressing scalability concerns.
• Ethereum’s Dencun upgrade has substantially reduced fees for Layer 2 networks, improving user experience and accessibility.
• Zero-knowledge proofs are becoming more cost-effective and popular, enhancing privacy and efficiency in blockchain transactions.

DeFi’s continued growth: Decentralized Finance (DeFi) remains a cornerstone of the crypto ecosystem, attracting significant capital and user interest.

• The total value locked in DeFi protocols has reached $169 billion, demonstrating strong investor confidence.
• Decentralized exchanges now account for 10% of spot crypto trading, challenging traditional centralized platforms.
• 29% of all Ether is now staked, up from 11% two years ago, indicating growing participation in network security and governance.

Crypto’s role in AI development: The intersection of cryptocurrency and artificial intelligence is becoming increasingly apparent, with potential solutions to AI’s challenges emerging from the crypto space.

• 34% of crypto projects report incorporating AI into their operations, showcasing the synergy between these technologies.
• Crypto initiatives are addressing AI compute access, intellectual property tracking, and developing open protocols for AI, potentially democratizing AI development.

New applications unlocked: Scalable infrastructure has enabled a wave of novel applications, expanding the crypto ecosystem beyond financial services.

• Low-cost NFT minting on social apps has gained traction, making digital ownership more accessible.
• Social network projects have emerged as a top category for crypto builders, exploring decentralized alternatives to traditional platforms.
• Onchain games are pushing the limits of blockchain scaling, driving innovation in infrastructure.
• Crypto prediction markets are experiencing growth, offering new ways to gauge public sentiment and forecast outcomes.

Future outlook and implications: The 2024 State of Crypto Report paints a picture of an industry on the cusp of mainstream integration, with significant potential for further growth and innovation.

• The convergence of improved infrastructure, increased adoption, and emerging applications suggests that cryptocurrency is poised to play an increasingly central role in the global economy.
• As the technology matures and regulatory frameworks evolve, the crypto industry may face both new opportunities and challenges in its path to wider acceptance and use.