Key indicators such as adoption rate, transaction volume and activity levels point to record levels in 2024, which will provide a significant boost to blockchain technology. Despite ongoing regulatory challenges, blockchain continues to evolve, as seen in these improvements.

Blockchain network has proven its durability and is now moving towards wider exploit after intense scrutiny from industry regulators.

On-chain transactions are reaching fresh heights

The most crucial achievement of blockchain in 2024 will be transaction volume. In December, online trading volume reached $817 million, far surpassing the previous record of $730 million set in January 2022. This development has resulted in an extraordinary annual rate of $10 trillion.

Dune Analytics CEO Fredrik Haga said transaction volumes are showing activity levels equal to their peak in 2021. This reflects the growing importance of blockchain in the global banking system.

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Reducing transaction fees is driving adoption

Another significant change in 2024 will be a piercing decline in blockchain transaction fees. Transaction fees have dropped dramatically from $2 billion in November 2021 to just $500 million in December 2024.

This decline removes a major barrier to blockchain adoption in various aspects of life for both individuals and businesses. Thanks to low transaction costs, blockchain becomes more applicable and scalable, enabling its exploit in many industries.

Regulatory challenges in the face of rapid growth

Blockchain networks are experiencing tremendous growth despite having to face a complicated regulatory context. Growing popularity means the industry is coming under closer scrutiny, particularly in relation to decentralized finance (DeFi) and cryptocurrency.

Despite these challenges, the on-chain industry remains focused on decentralized structures. Blockchain’s role in the global economy continues to grow, even with existing regulatory hurdles.

In 2024, key events, such as the approval of the Spot Bitcoin ETF by the US Securities and Exchange Commission (SEC), make the entire cryptocurrency market very positive.

This approval provides legitimacy to Bitcoin and most other leading cryptocurrencies, attracting enormous institutional investments into digital markets.

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Increased institutional investment and its impact

In January 2024, the Bitcoin ETF saw net inflows of over $35 billion IBIT by BlackRock as a market leader. Moreover, Donald Trump’s victory in the November elections also gives hope for fresh regulations regarding cryptocurrencies.

His promise to make the United States the “crypto center of the world” and commitment to creating clearer regulations further boosted market sentiment.

In December, Bitcoin’s price reached an all-time high of $108,135, contributing to the cryptocurrency’s total market value to the amount of USD 3.9 trillion at this time compared to $1.7 trillion in early 2018.

[Gambar dari Tech Xplore, grafik dari TradingView]