Author: Arjun Chand, Bankless; Translation: Deng Tong, Golden Finance
Cryptocurrency is developing rapidly – it’s like blink and you’ll miss it. This year’s first half was no exception, with new chains and applications emerging daily, and the crypto industry gaining mainstream recognition in the financial world. Amid the Twitter echo chamber and the frenzy of the bull market price trends, it’s easy to overlook the bigger picture. So, let’s narrow our focus and pay attention to the signals amidst the noise.
Crypto is just getting started; don’t be shaken. Today, we will review the key developments of the first half of 2024, looking at significant events and trends that highlight the progress we have made this year.
1. Cryptocurrency is now mainstream
Remember when cryptocurrency was a niche plaything of cypherpunks? Those days are long gone. In the first half of 2024, cryptocurrency surged into the mainstream. The turning point was the eagerly awaited approval of the Bitcoin ETF in January. Suddenly, Wall Street had a comfortable entryway into cryptocurrency, and they stormed in. Eleven ETFs were launched in a single day, breaking trading volume records.
And it didn’t stop with Bitcoin. The U.S. Securities and Exchange Commission (SEC) ultimately approved eight spot ETH ETFs in May, further validating the entire cryptocurrency ecosystem and opening the doors for broader institutional adoption. It’s not just ETFs; Fortune 500 companies are also joining in. The number of cryptocurrency projects launched hit historic highs, from consumer payments to tokenized treasures and who knows what else. The bottom line? Cryptocurrency is no longer on the fringe. It’s welcomed by financial heavyweights from Wall Street to Silicon Valley. The future of finance is cryptocurrency, and everyone knows it.
2. Cryptocurrency adoption is accelerating
Cryptocurrency adoption is accelerating at an astonishing pace. The number of active blockchain users has significantly increased, with April seeing a record high of 42.92 million active addresses. This indicates that users can now do meaningful things on the chain. One contributing factor may be the surge of different types of applications and services in the crypto ecosystem, from social networking applications like Farcaster, Friend.tech, and Fantasytop, to new chains and innovative DeFi primitives like restake.
Another factor is the resurgence of DeFi. DeFi activities and attention are on the rise again, marking new interests and activities on the chain that go beyond mere speculation, potentially shifting towards some real-world utility such as stablecoins for payments and tokenization of real-world assets (e.g., government securities).
The momentum is clear: more and more people are coming to the chain