Crypto Sees Second-Best Year Ever: 2024 Trading Hits $18.4 Trillion
The crypto market experienced a monumental performance
in 2024. Boosted by major developments like regulatory clarity, Bitcoin spot
ETF approvals, and DeFi innovations, the average monthly trading volume soared
to $1.5 trillion, up a staggering 135% from last year, AltIndex reported.
A Historic Year for Trading Volumes
The crypto market experienced a major resurgence in
2024, reportedly recording its second-highest trading volumes in history. November alone reached $2.7 trillion in trades, a three-year high, surpassing even some of the
most active months of the 2021 bull run.
December followed suit, affirming 2024’s status as one of the best years with a full-year total trading volume of $18.4 trillion. Despite
falling short of 2021’s all-time high of $26.2 trillion, 2024’s numbers
represented a significant recovery, nearly doubling last year’s $650 billion
monthly average.
Unsurprisingly, Binance maintained its dominance on the
market, processing 40% of all crypto trades this year. The exchange generated
$7.7 trillion in trading volume, averaging $641 billion per month.
Coinbase came in a distant second, with a full-year
total of $1.2 trillion and a monthly average of $99 billion. According to the research, several factors
underpinned this year’s remarkable performance. Bitcoin’s strong rally,
bolstered by the approval of spot ETFs, brought renewed confidence to the
market.
What Drove the 2024 Surge?
DeFi platforms also attracted substantial activity,
driving institutional and retail adoption. Regulatory clarity in key
regions like the US and Europe provided additional momentum, reassuring wary
investors.
While skeptics warn that the market remains heavily
reliant on Bitcoin’s trajectory, the broader adoption of decentralized finance
and blockchain technologies suggests a more resilient foundation.
For 2025, the question remains whether 2024’s momentum
can be sustained or if the market will face another cyclical downturn. At the
moment, the crypto market is experiencing mixed performance.
According to CoinMarketCap data, the leading cryptocurrency, Bitcoin, is down 1% and 2% in the past day and week, respectively, at $93k. The second largest digital asset, Ethereum, has added 2% in the past week.
On the other hand, XRP has declined 4% and 5% in the
past day and week, respectively. Solana (SOL) is up 5% in the past week, while
Cardano has declined 2% to change hands at $0.8754. Additionally, meme token
Dogecoin added 2% on the weekly chart.
This article was written by Jared Kirui at www.financemagnates.com.