A 2024 Year in Crypto: Milestones, Mania, and Market Shifts

There are no ‘quiet’ years in the cryptocurrency space, yet 2024 stands out more than most when looking at the range of market developments, regulatory shifts and cultural phenomena that have grabbed our attention in the past twelve months.

From new all-time highs for Bitcoin, to landmark court cases, memecoin mania, and the sudden support for Bitcoin by the new president of the United States, the past year in crypto has been eventful to say the least.

Let’s take a look at the events that shaped the cryptocurrency space in 2024 and see if there’s anything to be learned from the craziness of the past year.

Bitcoin Surpasses $100k For First Time

On Dec. 5 the value of Bitcoin exceeded $100,000 for the first time in its history, surpassing a market cap of $2 trillion. 

Fourteen years since Bitcoin’s creation, hitting $100k was a major landmark for the world’s first decentralized digital currency, and marked a price increase of 201,007,645% since it first appeared on the scene. 

Once again catapulted into the public consciousness, Bitcoin’s rise was helped in no small part by increased institutional adoption, as well as the vocal support of the new president of the United States. Speaking of which…

Donald Trump’s Administration ‘Adopts’ Bitcoin

Initially opposed to the threat Bitcoin supposedly posed to the dominance of the U.S dollar, Donald Trump’s views on cryptocurrency changed in the run-up to the 2024 U.S election. 

Now, the pending ruler of the most powerful nation on earth has a wealth of plans for integrating Bitcoin into the current financial system. These include creating a national Bitcoin reserve of around 200,000 BTC to hedge against the country’s national debt and strengthen its financial position, as well as promoting Bitcoin mining, and removing capital gains tax from Bitcoin purchases.

Along with appointing pro-crypto officials to prominent government positions, Trump has also pledged to scrap any plans for the creation of a CBDC (central bank digital currency), easing concerns over potential invasions of privacy and intrusive government control.

Whether these plans will come to fruition, or whether they are just the empty promises of a political candidate determined to be elected remains to be seen. 

But one thing we do know for sure is that other countries are benefiting from Bitcoin adoption already…

El Salvador’s National BTC Reserves Double in Value

El Salvador became the first nation to adopt Bitcoin as legal tender in 2021, and the country was also the first to set up a national BTC reserve similar to what Donald Trump has proposed for the U.S.

On Dec. 5 the El Salvador president Nayib Bukele took to X to share a screenshot of the country’s crypto portfolio, which had just exceeded $600 million in value - a 123% increase since its initial investment of $269 million.

Following Bitcoin’s ascension to $100,000, the nation now has over $333 million in unrealised BTC gains, and the digital currency is becoming a more central part of the country’s overall financial strategy.

An upcoming $1.3 billion loan from the IMF (international monetary fund) may be dependent on El Salvador making its Bitcoin usage voluntary rather than mandatory, but the trend of increased national and institutional adoption of Bitcoin continues to thrive.

Grayscale’s Bitcoin and Ethereum ETFs Legitimize Crypto

The first Bitcoin ETF was launched by investment firm Grayscale on Jan. 10, 2024, marking a significant milestone in the crypto landscape in the U.S.

After being refused permission to convert its Bitcoin Trust into an ETF (exchange traded fund) on several occasions in the past few years, Grayscale was finally given the go-ahead at the start of the year. 

Now there are 60 crypto ETFs on the market - primarily based around Bitcoin and Ethereum. Crypto ETFs provide the opportunity to invest in cryptocurrencies without actually purchasing the underlying asset itself, thus minimizing risk and making the process more accessible for everyday investors.

The launch of Bitcoin and Ethereum ETFs were viewed as a long-awaited vindication of the digital assets in the eyes of the traditional finance space, and helped legitimize the idea of cryptocurrency among the general public.

The rise of Bitcoin and Ethereum ETFs in 2024 no-doubt contributed to the crypto market’s surge in the past year, with the combined AUM (assets under management) value of all ETFs now exceeding $143 billion. 

You could say that institutional adoption of Bitcoin is becoming something of a meme at this point…

The Great Memecoin Boom of 2024

Memecoins had been a part of the crypto landscape since the launch of Dogecoin (DOGE) in 2013, but it was only in 2024 that the memecoin industry went pro.

At time of writing, the combined value of all major memecoins in existence stands at $131 billion. That number is somewhat questionable and may even be a lot higher given that new memecoins are being created every day.

A fine example is Luigi Inu (LUIGI), which was created in response to the arrest of purported UnitedHealthcare CEO Brain Thompson’s killer, Luigi Mangione, on Dec. 9. 

Less than 24 hours later, the value of LUIGI had skyrocketed to over $60 million, before falling back to around $25 million at present time.

Memecoins captured the public’s imagination and gave non-technical bystanders an avenue through which to invest in pop-culture phenomena which provided entertainment as well as the potential for profit. 

The design of memecoins in 2024 reflected a wide range of political and cultural narratives, from MAGA-based Donald Trump coins, to coins based on beloved fictional creations such as Harry Potter, as well as high-profile public figures like Elon Musk.

Pump.fun Scandal

Much of 2024’s memecoin mania was fuelled by a little website named Pump.fun, where anyone - regardless of technical knowledge - could spin up their own memecoin and launch it to the world in a matter of minutes.

Soon, Pump.fun came to be the source of the majority of token launches on the Solana blockchain. But the problem arose when the creators of those tokens tried to promote their creations.

Via a livestream feature on the Pump.fun website, people were seen engaging in all manner of illegal and illicit acts in an attempt to gain publicity and pump the price of their tokens. These ranged from simulating violence, having sex, threatening to commit suicide, and much more.

Pump.fun has since been banned in certain jurisdictions, including the United Kingdom, and the livestream feature was removed from its website.

Bitcoin’s Fourth Halving Event

Halving events - where the rate at which new BTC coins are released into circulation is halved - are significant occasions in the Bitcoin calendar. Occurring approximately every four years, halving events increase the scarcity of new BTC and in turn increase the perceived value of the coins already in circulation.

This proved to be the case in 2024. Just over six months from 2024’s halving on April 19, the value of Bitcoin has increased from $63,000 to $100,000 - a rise of 58%.

Now, just 3.25 BTC coins are released to miners who successfully mine a Bitcoin block. This number will remain until April 2028, when the next halving event reduces miner block rewards to 1.5625 BTC.

SEC vs Coinbase

In 2023 the SEC (securities and exchange commission) filed a lawsuit against Coinbase, alleging that the exchange operated as an unregistered securities broker.

Coinbase denied the claims and argued that the cryptocurrencies listed on its website, including Solana (SOL), Cardano (ADA), and Polygon (MATIC), do not meet the definition of securities.

In March 2024, a federal court rejected Coinbase’s claims to dismiss the case and decided that the SEC’s case against Coinbase will be heard by a jury at trial. As of December 2024 the case is still ongoing, and a trial date has not yet been set. 

The outcome could set a major precedent for how cryptocurrency exchanges operate in the future.

SEC vs Ripple Labs

Since its initial lawsuit filing in 2020, the SEC has argued that Ripple Labs sold unregistered securities in the form of its XRP token. The back and forth legal battle captured the attention of cryptocurrency enthusiasts - even non-XRP holders - as the outcome of the case could lay the legal groundwork for how cryptocurrencies are viewed in legal terms moving forward. 

In 2023, the court delivered a mixed ruling that was seen as a small victory for Ripple, stating that while XRP was not to be viewed as a security, Ripple’s institutional sales of the token did violate securities laws. 

Ripple was ordered to pay a $125 million civil penalty (a major reduction from the SEC’s initial target of $2 billion), but in Oct. 2024 the SEC appealed the ruling and the case is still ongoing as of time of writing. 

The case is viewed by the broader crypto community as a litmus test for future regulatory frameworks and enforcement strategies.

SEC vs Binance - CZ Imprisoned

On April 30, 2024, former Binance CEO Changpeng Zhao (CZ) was sentenced to four months in prison after a year of legal battles in which Binance was accused of committing securities violations and engaging in wash-trading.

Binance was ordered to pay $4.3 billion in penalties, while CZ was also ordered to personally pay a fine of $50 million for his role in the drama, in which he was judged to have violated the united States’ Bank Secrecy Act.

As one of the biggest fines ever imposed in the financial arena, the ruling had less of an impact on Binance than many expected. Despite the legal outcome, Binance retained its dominance among cryptocurrency exchanges, and continues to be the largest cryptocurrency exchange by trade volume to this day. 

CZ was replaced as Binance CEO by Richard Teng who claims to have removed the “gaps in compliance” previously exhibited by the exchange, and asserts that Binance is now “totally different.”

CZ was released from prison on Sept. 27, 2024, and has been barred from taking any future management or ownership role with Binance, although he has stated that he will continue to invest in blockchain and crypto technology. Zhao is also in the process of writing a book about his experiences during the trial and his time in prison.

Mt. Gox Creditor Repayments

One of the biggest crypto thefts of all time occurred in 2014 when cryptocurrency exchange Mt. Gox was hacked and its customers were relieved of 850,000 Bitcoins (worth $85 billion at current prices).

After years of legal delays, a repayment plan was approved in 2021, and in 2024 creditors began to receive reimbursements in the form of Bitcoin, Bitcoin Cash, and other fiat currencies. 

Because of the potential impact that the sale of such large amounts of coins could have on the crypto market, the repayment process is being handled slowly and with caution. For many, the repayment of Mt. Gox creditors in 2024 marks long-overdue closure of one of the crypto space’s earliest and most notable failures.

Conclusion

The past year has seen extravagant highs and disastrous lows for the crypto and blockchain space as a whole. 

At the same time as public confidence in digital currencies was being boosted by institutional adoption and the support of a U.S president, it was also being marred by the rise of a memecoin industry that has already seen thousands lose money on ill-fated investments, and ongoing legal battles which saw the founder of the world’s largest cryptocurrency exchange thrown in prison.

With Bitcoin still apparently on the rise, the overall perception of 2024 will no-doubt be a positive one. And with the upcoming Trump presidency due to begin next month, the outlook for the coming year appears to be optimistic. 

Tune in this time next year to see what strange anomalies and events 2025 throws up in the crypto and blockchain space.

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