As a seasoned analyst with a decade of experience in the volatile and dynamic world of cryptocurrencies, I must admit that the maturation of the market in 2024 has been nothing short of astounding. The dramatic influx of institutional money, as evidenced by the success of spot ETFs, is a testament to the growing acceptance and legitimacy of digital assets.
2024 saw a remarkable growth spurt in the cryptocurrency market, with vast sums of money pouring into exchange-traded funds (ETFs) based on spot crypto markets and transaction activity surging on blockchain networks, as suggested by a report published by Coinbase and Glassnode on October 15.
As a crypto investor, I’ve noticed an undeniable surge in various market indicators. The explosive popularity of spot ETFs, the heightened on-chain activity, and the significant increase in trading volumes all point to a maturing and expanding market. This transformation is making the market deeper, more liquid, advanced, and more accessible, as suggested by David Duong, Coinbase’s head of institutional research, along with the Glassnode analyst team.
Furthermore, the increasing use of stablecoins and an expansion of Ethereum layer-2 scaling technologies indicate that the cryptocurrency market is maturing and expanding its economic scope, according to the report.
2024 saw a decrease in volatility within the cryptocurrency market, with investors increasingly favoring higher-grade assets, as indicated by the report.
The volatility of Bitcoin’s (BTC) current three-month spot price is below 60%, which is significantly lower compared to its 2021 high of almost 130%. This information was derived from the data.
During the third quarter of 2024, it was found through Glassnode’s data that Stablecoins and Bitcoin together made up a greater share of the overall value of all cryptocurrencies in circulation.
In Q3 of 2024, US-listed Bitcoin Exchange Traded Funds (ETFs) managed to attract around $5 billion into the digital currency market, as per data gathered by Bloomberg and Coinbase.
During the third quarter, I witnessed a record peak in the market capitalization of stablecoins, soaring to approximately $160 billion. This surge came as investors and users were increasingly utilizing these digital assets for an array of innovative and established applications, as reported by Glassnode.
As an analyst, I’ve observed a consistent trend of redemptions in the Ether Exchange Traded Funds (ETFs). This is largely due to investors withdrawing their holdings from Grayscale Ethereum Trust (ETHE), a fund that was initially structured differently when it was launched in 2017. Interestingly, this trust transformed into an ETF in the year 2024.
Spot ETH price performance is lagging behind BTC’s but “looking beyond price reveals a rapidly growing Ethereum ecosystem, led by the strength of new and innovative layer-2s,” the report said.
By the year 2024, there was a significant spike in daily active Ethereum addresses, and transactions multiplied approximately five times more than at the beginning of 2023, according to the report. The surge was attributed to the expansion of layer-2 scaling networks like Coinbase’s Base, which served as a triggering factor.
As a crypto investor, I’ve noticed an impressive surge in Ethereum’s (ETH) market share of fees among fee-earning L1 blockchains. After hitting a low of 9% in late August, it has bounced back significantly, now claiming approximately 40% by late September, as per the latest report.
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2024-10-15 19:54