DWF 2024 Market Review: Stablecoin Supply Reaches New High of 187.5 Billion; On-chain Activity Still Holds Significant Growth Potential

By: blockbeats|2024/12/23 18:15:01
0
Share
copy
Original Source: DWF Ventures
Original Translation: DeepFlow Tech

2024 emerged as a pivotal year for cryptocurrency development—from increased institutional investor participation to significant on-chain activity growth, this year showcased important industry progress.

Here is a recap of the year's data:

DWF 2024 Market Review: Stablecoin Supply Reaches New High of 187.5 Billion; On-chain Activity Still Holds Significant Growth Potential

Continuation of 2023's Growth

The market saw a strong rebound this year, with the total market capitalization surpassing the 2021 all-time high (ATH) and reaching $3.7 trillion.

In addition to significant liquidity increases, user numbers and trading volumes also grew in tandem—these data points indicate a healthy market development and increased real-world utility.

ETFs and Institutional Fund Inflows

One of the biggest market drivers in 2024 was the launch of a Bitcoin ETF in January and an Ethereum ETF in July. These financial products not only lowered the barrier for investors to enter the crypto market but also reflected a rapid growth in demand for crypto assets from traditional investors.

It is estimated that the total on-chain holdings of the Bitcoin ETF have grown to 1.1 million BTC, doubling from the beginning of the year.

Not only crypto-native companies, but many traditional enterprises are also increasing their investments in Bitcoin and other crypto assets. For example, companies like @MicroStrategy led by Saylor continue to add to their Bitcoin holdings, with their current holdings reaching 439,000 BTC.

The Potential of Stablecoins

Stablecoins are a core tool in the cryptocurrency ecosystem, enabling fast asset exchange and serving as a key indicator of new capital inflows.

In 2024, the total supply of stablecoins reached $187.5 billion, setting a new historical high. Meanwhile, stablecoin transaction counts and volumes grew by 30%-40%.

It is worth noting that even amidst market fluctuations, stablecoin transaction volumes remained at high levels—indicating that stablecoins have significant real-world utility beyond trading.

In terms of on-chain stablecoin trading volume, @trondao, @ethereum, @BNBCHAIN, and @solana continue to dominate. Layer 2 networks like @arbitrum and @base are also showing strong momentum in USDC trading volume and user growth.

While centralized exchanges (CEX) currently still lead in trading activity compared to decentralized exchanges (DEX), this landscape is changing.

The USDtb products recently launched by @BlackRock and @ethena_labs provide a secure and convenient way for traditional funds to enter DeFi. With the emergence of these regulated on-ramps, we may see more funds flowing into the on-chain ecosystem in the future.

The Rise of the Stablecoin Market in Latin America and Africa

Over the past year, the stablecoin market in Latin America and Africa has grown by 40%-50%. These regions have a strong demand for trustless currency hedging tools, leading to rapid development of the stablecoin market here.

More and more resources are pouring into these regions, such as the education initiatives launched by @Tether_to and @circle's payment service expansion plans in Latin America. Therefore, we expect this sector to continue its strong growth trajectory in 2025.

Trends in On-Chain Activity

L2 networks (such as @base, @arbitrum, and @Optimism) and non-EVM chains like @solana have shown significant inflows of capital this year. Users are increasingly opting for blockchain networks with lower transaction fees and faster speeds, leading to the attraction of more users to these chains.

The fastest-growing sectors are perpetual contracts and decentralized exchanges (DEX). The trading volumes in these two areas have grown by over 150%, and the total value locked (TVL) has also seen a 2-3x increase. The memecoin craze sparked by @pumpdotfun has greatly boosted trading volumes, with @RaydiumProtocol being one of the major beneficiaries, driving the development of other ecosystems as well. Additionally, this trend has fueled the widespread use of trading bots (such as @tradewithPhoton and @bonkbot_io). These bots are not only highly utilized but have also become one of the highest-earning fee protocols in the current crypto industry.

Nevertheless, on-chain activity still has tremendous growth potential. Currently, only 5%-10% of cryptocurrency holders are actively engaged in on-chain operations, meaning there is a large untapped user base.

Mobile-friendly interfaces (such as TON's mini app) have already made significant strides in user growth. For example, @ton_blockchain's mini-app has successfully attracted over 50 million users. Therefore, the future development of protocols will increasingly rely on mechanisms that optimize user experience (UX) and enhance user retention.

Original Article Link

You may also like

Morning News | The Hong Kong Securities and Futures Commission announced the regulatory framework for secondary market trading of tokenized investment products; Strategy increased its holdings by 34,164 bitcoins last week; KAIO completed a strategic fi...

Overview of Important Market Events on April 20

What Is an XRP Wallet? The Best Wallets to Store XRP (2026 Updated)

An XRP wallet lets you safely store, send, and receive XRP on the XRP Ledger. Learn what wallets support XRP and discover the best XRP wallets for beginners and long-term holders in 2026.

What are the Top AI Crypto Coins? Render vs. Akash: 5 Gems Solving the 2026 GPU Crisis

What are the best AI crypto coins for the 2026 cycle? Beyond the hype, we analyze top tokens like RNDR, AKT, and FET that provide real-world solutions to the global GPU shortage and the rise of autonomous agents.

What Is a Token in AI? What Is an AI Token + 3 Gems You Can't Miss in 2026

The era of AI hype has transitioned into an era of utility. As we move through Q2 2026, the market is no longer rewarding "narrative-only" projects. At WEEX Research, we are seeing a massive capital rotation into Decentralized Compute (DePIN) and Autonomous Agent coordination layers. This guide analyzes which AI tokens are capturing institutional liquidity and how to spot high-conviction setups in a maturing market.

Consumer-grade Crypto Global Survey: Users, Revenue, and Track Distribution

The number of active users of consumer-grade encryption has long reached tens of millions, but it is not in the sight of Silicon Valley and New York.

Prediction Markets Under Bias

Why do authoritative narratives always exclude prediction markets?

Popular coins

Latest Crypto News

Read more