Key indices such as adoption, transaction volumes and activity levels have reached new highs in 2024, providing a significant boost to blockchain technology. Despite persistent regulatory hurdles, blockchain is booming, as this increase shows.
Blockchain networks have proven their ability to thrive and are moving toward broader use, even as regulators closely monitor the sector.
On-Chain Transactions Reach New Highs
However, the most notable advancement blockchain made in 2024 was in transaction volume. As of December, on-chain transactions were worth $817 million, far more than the previous high of $730 million reached in January 2022. This means that development has been growing at a staggering annual rate of $10 trillion.
Fredrik Haga, CEO of Dune Analytics, said the transaction numbers showed activity levels were similar to the 2021 peak. This shows that blockchain is becoming increasingly important in the global banking system.
Okay, prices went up, but what did real channel adoption look like in 2024!? Let’s look at the data 👇
In 2024, unleashing adoption has reached 2021 levels while surpassing previous highs in transfer volume and number of transactions!
Global channel adoption – almost… pic.twitter.com/IImeJjNtIj
– hagaetc.eth (@hagaetc) January 2, 2025
Lower Transaction Fees Drive Adoption
Another significant change in 2024 was a sharp drop in blockchain transaction fees. The cost of transactions increased from $2 billion in November 2021 to $500 million in December 2024.
This decline removes a major barrier to blockchain adoption across the board, such as individuals and businesses. This can make blockchains more applicable and scalable since transactions are cheap and thus heading towards many applications in various industries.
Regulatory challenges in times of rapid growth
Blockchain networks have experienced extraordinary growth while evolving in a difficult regulatory environment. As popularity grew, the sector came under increased scrutiny, particularly regarding decentralized finance (DeFi) and cryptocurrencies.
Aside from some of the expected issues and problems, the blockchain industry has continued to pursue decentralized structures, and with this, the role blockchain plays in the global economy has expanded.
In 2024, a significant event – the approval of the Spot Bitcoin ETF by the United States Securities and Exchange Commission – brought a lot of excitement and optimism to the broader crypto market. This gave legitimacy to Bitcoin and most other leading cryptocurrencies and thus generated huge institutional investments in the digital market.
As of January 2024, Bitcoin ETFs have received over $35 billion in net inflows, with BlackRock’s IBIT leading the way.
In addition to these market events, Donald Trump’s victory in November has once again raised regulatory hope for cryptocurrencies. His promises to make the United States the “crypto capital of the world” and his commitment to clearer regulation have further increased market sentiment.
By December, the price of Bitcoin had reached an all-time high of $108,135 and contributed to a total cryptocurrency market value of $3.9 trillion at that time, up from $1.7 trillion at the start of 2018.
Featured image from Tech Xplore, chart from TradingView
