Bankless 2024 Mid-Year Review: On-chain Active Users Increased Significantly, Bull Market Is Far From Over

Original title: Crypto in 2024: Mid-Year Reflections

Original author: Arjun Chand, Banklesss
Original translation: Mary Liu, BitpushNews

Crypto technology is developing so fast that it is overwhelming.

The first half of 2024 is no exception, with new chains and applications emerging every day and the crypto industry gradually gaining mainstream recognition in the financial community.

Amid the frenzy of shouting tweets and bullish price action, it is easy to lose sight of the big picture. So let's zoom out and focus on the real signals in the chaos of "noise".

TLD: Crypto is just getting started, please don't get thrown off the train.

In this article, we will review the key developments in the industry in the first half of 2024 and explore the important events and trends that marked it.

1. Cryptocurrency is now mainstream

Remember when crypto was just a plaything for cypherpunks? Those days are gone.

In the first half of 2024, cryptocurrencies have made a strong push into the mainstream.

The turning point was the long-awaited approval of a spot Bitcoin ETF in January. Suddenly, Wall Street had easy access to the cryptocurrency market, and they moved in big. 11 ETFs were launched in one day, with record trading volumes.

Wall Street didn’t stop with Bitcoin. The U.S. Securities and Exchange Commission (SEC) finally approved eight Ethereum spot ETFs in May, further validating the entire crypto ecosystem and opening the door to broader institutional adoption.

It’s not just ETFs. Fortune 500 companies are getting in on the action, too. Record numbers of companies are launching crypto projects, from consumer payments to tokenized treasuries to a dizzying array of other projects.

The bottom line? Crypto is no longer a fringe product. It is gaining traction with the big guns of finance, from Wall Street to Silicon Valley. The future of finance is crypto, and everyone knows it.

Source: The State of Crypto: The Fortune 500 Moving Onchain

Second, Cryptocurrency Adoption Accelerates

The pace of cryptocurrency adoption is remarkable. The number of active users on the blockchain has increased significantly, with the number of active addresses reaching an all-time high of 42.92 million in April.

Source: State of Crypto Index

This is more than just a short-lived trend; it shows that users can do something meaningful on the chain.

One factor may be the surge in different types of applications and services in the crypto ecosystem, from social financial applications such as Farcaster, Friend.tech, and Fantasy.top, to new chains and innovative DeFi primitives such as re-staking.

Another factor is the resurgence of DeFi. DeFi activity and attention are rising again, indicating a renewed interest and activity in the chain that has moved beyond simple speculation and perhaps toward real-world utility, such as stablecoins for payments and asset tokenization for RWAs such as government securities.

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

3. Ethereum Still Dominates, 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, and the Ethereum ecosystem is the foundation for countless applications and chains.

This dominance is not only about where the hot money is flowing, but also about the technological progress on the roadmap. Ethereum is scaling via L2s like Base, which have seen widespread adoption this year, and thanks to the recent Dencun upgrade, offers users significantly lower gas fees.

However, crypto is now more than just Ethereum and its ecosystem. Today, we have ecosystems like Solana that are competing for the market.

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 vain; it’s translating into real usage — Solana’s DEX volume has even surpassed Ethereum’s multiple times this cycle as it has become the venue for memecoin trading.

Additionally, Solana’s innovation engine is thriving. With technical advances like zk-compression and user-friendly features like Blinks laying the foundation for wider adoption, we can see Solana’s network effect taking root.

Make no mistake: Ethereum is not going away. Its mature network effects and large developer community ensure its continued relevance in the crypto space.

But Solana’s amazing progress can’t be ignored. Both ecosystems are thriving in their own unique ways. This parallel adoption is a win for crypto users as it accelerates innovation and drives the entire industry forward.

Fourth, keep going, and keep going up

Bitcoin hit a new all-time high in March, breaking through the $70,000 mark. While the party seems to have ended rather abruptly, let’s not be too upset, this bull run is far from over.

Let’s be honest, the market has been a bit crazy lately, hasn’t it? Stocks are hitting all-time highs, meme coins are soaring, and every celebrity is launching their own token. The reality check was probably long overdue, hence the big drop we experienced in June. But here’s the key point: sentiment may have pulled back sharply, but the long-term outlook for crypto remains positive.

Sentiment may be shifting, but don’t ignore the bullish signals.

The long-awaited ETH ETF is coming, the Fed is set to cut rates, and with a potential positive policy shift, crypto is likely to continue to take its place on the political stage during the US election.

This pullback may feel like the end, but in crypto, it’s often a buying opportunity. So unless you’re facing a margin call, hang in there and enjoy the ride.

Conclusion

So, is it all plain sailing for crypto in the first half of 2024? Not really.

We’ve seen our fair share of noise – regulatory FUD, narrative bubbles, meme coin mania, celebrity coins, volatile price action, and disappointing airdrops.

But hey, this is crypto. Zoom out, and things look a lot brighter. Crypto adoption is accelerating, 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 the fundamentals are strong and future catalysts are already in play.

The bull market has to continue.

Original link

欢迎加入律动 BlockBeats 官方社群：

Telegram 订阅群： https://t.me/theblockbeats

Telegram 交流群： https://t.me/BlockBeats_App

Twitter 官方账号： https://twitter.com/BlockBeatsAsia