It was quite an impressive year as the global market of cryptocurrency showed an increased of 6.4% adoption will be achieved by the first half of 2024 due to various pivotal events concerning the Bitcoin and Ethereum ecosystem. According to Crypto. According to ‘Cryptocurrency Statistics and Assets’, by news sources, the overall global users have increased from 580 million in the last month of 2023 to 617 million in June 2024. This further validates cryptocurrency adoption as a mainstream asset class amid the advancements in Bitcoin and Ethereum.
Bitcoin Leads the Charge with 5.9% Growth
Bitcoin remains the leading cryptocurrency, with a 5.9% increase in ownership, reaching 314 million by mid-2024. This represents 51% of all crypto holders worldwide. Two key events drove Bitcoin’s growth: the proposed launch of spot Bitcoin ETFs in the US and the fourth Bitcoin halving in April 2024. The halving reduced block rewards from 6.25 BTC to 3.125 BTC, solidifying Bitcoin’s ‘digital gold’ narrative.
This scarcity sparked institutional interest, boosting its usage. “The halving event always propels time forward, and this year was special,” said Crypto’s spokesperson. The launch of spot Bitcoin ETFs in the US also fueled growth, attracting 388,000 to 1.6 million new investors annually. Institutional investment in these funds surpassed $14.1 billion by June 2024.
Ethereum Sees Even Sharper Adoption with 9.7% Growth
Specifically, the share of Ethereum (ETH) increased more actively, with 9.7 Increasing the number of owners. According to news sources by June of the year 2024, Ethereum has a total holder of 136 million, contributing to 22% of the total cryptocurrency investor around the world. This expansion was mainly fuelled by Ethereum’s Dencun upgrade in March 2024, which helped to slash transaction costs in its Layer-2 (L2) system.
The Dencun upgrade improved Ethereum scalability, and as a result, Layer-2 activity increased, reaching 90% after the upgrade from 77%. These enhancements have made Ethereum more popular and faster, thus attracting more users and traders.
Moreover, liquid restaking programs in Ethereum’s DeFi sector have greatly contributed to increasing the total value locked in DeFi protocols. Specifically, the TVL increased to $100 billion in the first quarter of 2024, which is almost twofold compared to the previous quarter. This is because Ethereum is increasingly dominating the DeFi scene where it remains highly active.
“The success of the Dencun upgrade has made Ethereum a more attractive platform for both developers and users, driving the sharp increase in adoption we’ve seen this year,” commented an industry analyst.
Institutional Adoption Drives Market Growth
Institutional interest was a mainstay for adopting crypto in 2024, with key events in the Bitcoin and Ethereum blockchains. The news report report reveals that it has risen by 1.7% and 1.6% monthly. This period was marked by Bitcoin’s halving event and Ethereum’s Denali upgrade, along with large institutional buying.
Bitcoin alone received over $14 billion in inflows by the end of June 2024 from the U.S. spot Bitcoin ETFs, which underlines the preference of institutions for Bitcoin. Likewise, Ethereum saw increased institutional adoption, particularly when the SEC lowered its investigations on Ethereum and later gave the green light for spot ETH ETFs. The approval of these ETFs has increased investor confidence in Ethereum, resulting in increased demand for ETH, which has escalated the price of ETH to $3,900 as of June 2024.
However, the wider market has struggled to continue this trend, as both Bitcoin and Ethereum have seen significant selling pressure in recent weeks due to macro factors and Middle Eastern tensions.
A Quick Wrap Up
The first half of 2024 has been characterized by growth in the global cryptocurrency market, with a 6.4% increase in the number of crypto owners, totaling 617 million persons by June of the year. Bitcoin and Ethereum have been at the forefront of this growth, due to activities such as the Bitcoin halving, spot Bitcoin ETFs, and Ethereum’s Denali upgrade. However, the failure to reach an all-time high indicates that the cryptocurrency market still faces severe limitations today, in line with rising macroeconomic headwinds and geopolitical uncertainties.
As of August 19, 2024, the price of Bitcoin was $59,121, and that of Ethereum was $2,612, as they remained below their record highs seen earlier this year. The continuous use of cryptocurrencies will hence depend on the capacity of these digital currencies to overcome these challenges and sustain investor confidence in the long run.
