CoinGecko’s 2024 Annual Cryptocurrency Industry Report found that Bitcoin (BTC) has cemented its position as the cornerstone of the cryptocurrency market, increasing its dominance to 53.6% of total market capitalization by the end of the year.
Bitcoin outperformed all major asset classes in 2024, delivering an impressive annual return of +121.5%.
Bitcoin’s fourth halving in 2024 marked a pivotal moment in the cryptocurrency market, beginning its fourth bull cycle. However, the dynamics of this rise have been shaped by unexpected macroeconomic and geopolitical events.
From the approval of Bitcoin ETFs in the US to interest rate cuts by the central bank and the re-election of Donald Trump, these factors have pushed Bitcoin and the broader cryptocurrency market to new heights.
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The total market capitalization of cryptocurrencies will rise by almost 100% in 2024
The research found that the total market capitalization of cryptocurrencies nearly doubled in 2024. It grew by a staggering 97.7% over the year to reach an all-time high of $3.91 trillion in mid-December.
This growth was particularly evident in the fourth quarter, where market capitalization rose 45.7% quarter-on-quarter, adding $1.07 trillion.
In fact, average daily trading volume rose from $31.1 billion in the third quarter to $62.6 billion in the fourth quarter, an increase of 101.3% quarter-over-quarter.
Over $190 billion in spot volume was recorded on December 6, 2024 alone when Bitcoin surpassed $100,000, marking a yearly high.
“Q4 2024 was a historic quarter for Bitcoin (BTC), as it surpassed $100,000 for the first time on December 9, 2024,” the report stated. It reached a high of $108,135 before pulling back slightly to end the year at $93,508. This represents an increase of 121.5% from the beginning of the year
Bitcoin’s record rise to $108,135 symbolized renewed investor confidence, while emerging trends such as AI integration and layer-2 scalability solutions demonstrated the utility of cutting-edge cryptocurrencies beyond speculative investments.
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The market value of AI agents rose 322.2% in Q4 2024
AI agents became one of the fastest growing sectors in the cryptocurrency space in Q4 2024. Their market capitalization rose by 322.2%, from $4.8 billion to $15.5 billion.
It is worth noting that the launch of GOAT on Solana stimulated initial interest from AI customers.
Meanwhile, central exchanges (CEXs) saw unprecedented activity in Q4 2024, with spot trading volumes reaching an all-time high of $6.45 trillion, up 111.7% QoQ.
Major players include Binance. It maintains its dominance with a 34.7% market share among the top CEX exchanges. Upbit was the fastest-growing stock exchange in the fourth quarter, with trading volumes rising 314.8% QoQ, driven by increased activity during political unrest in South Korea.
Overall, the stock exchange processed $17.4 trillion in spot trading volume throughout 2024 — more than double the $7.2 trillion recorded in 2023.
XRP saw its market share rise to 3.5%, making it one of the standout performers alongside Bitcoin in Q4 2024. This allowed XRP to leapfrog BNB and Solana to secure the fourth spot in terms of market cap.
Dogecoin (DOGE) has also re-entered the top seven cryptocurrencies by market cap for the first time since April 2021, replacing the USDC stablecoin – a notable shift that reflects changing investor sentiment.
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