From institutional recognition
to technological breakthroughs
The beginning of 2024 was marked by a historic event for the cryptocurrency industry - the approval of spot Bitcoin ETFs by the US regulator SEC. This decision opened a new chapter in the history of digital assets, providing traditional investors with a simple and regulated way to access the first cryptocurrency. The largest financial giants, including BlackRock and Fidelity, launched their exchange-traded funds, which led to an influx of billions of dollars into the market in the first weeks of trading.
Amid institutional recognition, Bitcoin started the year at around $42,000, showing steady growth after the launch of the ETF. Ethereum, following the industry flagship, also showed significant strengthening, supported by the active development of the Layer 2 ecosystem. The zkSync and Optimism projects have made particularly notable progress in addressing network scalability issues.
April 2024 was a landmark month for the industry due to the fourth Bitcoin halving. This event, which occurs every four years, reduced the miners' reward for a mined block from 6.25 to 3.125 BTC. Mining companies were actively preparing for this event by updating equipment and optimizing operational processes. Particular attention was paid to the transition to renewable energy sources and improving the energy efficiency of mining operations.
The decentralized finance (DeFi) sector showed a marked maturation in the first months of the year. After a series of hacks at the beginning of the year, protocols have significantly tightened security measures, which has led to increased investor confidence and an increase in the volume of blocked funds (TVL). Of particular interest were projects related to the tokenization of real-world assets (RWAs), which offer a bridge between traditional and digital finance.
The regulatory landscape continued to evolve, with increased oversight of cryptocurrency companies in many jurisdictions. Regulators paid special attention to investor protection and anti-money laundering, which led to stricter reporting requirements and KYC/AML procedures. However, unlike in previous years, regulatory oversight has become more constructive, as evidenced by the approval of the Bitcoin ETF.
The NFT market has undergone a significant transformation, moving away from purely speculative projects towards practical applications. Leading brands began to integrate NFTs into their loyalty programs, and the gaming industry actively implemented the technology to create unique gaming assets. The emergence of new standards and protocols for NFTs has contributed to the improvement of their functionality and usability.
The technological infrastructure of the cryptocurrency market continued to develop rapidly. The improvements affected both the basic level of blockchains and user interfaces. Particular progress has been made in the development of interoperability solutions and developer tools, which has contributed to a more integrated and user-friendly ecosystem.
An important trend in early 2024 was the deepening integration of cryptocurrencies with the traditional financial sector. Large banks have expanded their range of cryptocurrency services, and institutional investors, including pension funds, have begun to explore more actively the possibilities of investing in digital assets. The development of reliable custodial solutions has made cryptocurrency storage safer and more convenient for large players.
The first four months of 2024 have shown that the cryptocurrency industry has entered a new phase of development, characterized by greater maturity, institutionalization, and integration with traditional finance. The approval of Bitcoin ETFs, the successful halving of the industry, and ongoing technological innovation have created a solid foundation for further growth and development of the industry.
