Key indicators such as adoption, transaction volume and activity levels reached fresh highs in 2024, giving blockchain technology a significant boost. Despite continuing regulatory hurdles, blockchain is flourishing, as this growth shows.
Blockchain networks have proven they can evolve and are moving toward wider apply, even as regulators keep a close eye on the industry.
On-chain transactions have reached a fresh level
However, the most notable breakthrough blockchain achieved in 2024 was transaction volume. In December, on-chain transactions were worth $817 million, significantly higher than the previous peak of $730 million in January 2022. This meant that this development raised the annual turnover rate to a staggering $10 trillion.
Fredrik Haga, CEO of Dune Analytics, said the number of transactions showed that activity levels were close to the 2021 peak. This shows that blockchain is becoming increasingly crucial in the global banking system.
OK, prices have gone up, but what did the actual onchain adoption look like in 2024!? Let’s look at the data 👇
In 2024, unchain adoption reached 2021 levels, while exceeding previous records in terms of transfer volume and number of transactions!
Overall onchain adoption – almost… pic.twitter.com/IImeJjNtIj
— hagaetc.eth (@hagaetc) January 2, 2025
Reduced transaction fees encourage adoption
Another significant change in 2024 was the acute decline in blockchain transaction fees. The transaction cost decreased from $2 billion in November 2021 to $500 million in December 2024.
This decline removes a immense obstacle to blockchain adoption in all walks of life, such as individuals and corporations. This could make blockchains more useful and scalable, as transactions are economical, and thus reach numerous applications across industries.
Regulatory challenges in a period of rapid growth
Blockchain networks have experienced extraordinary growth while navigating a challenging regulatory context. While it has grown in popularity, the industry has faced more scrutiny, particularly regarding decentralized finance (DeFi) and cryptocurrencies.
Some expected problems and issues aside, the on-chain industry continued to move towards decentralized structures, and with this the role that blockchain played in the global economy increased.
In 2024, a significant event – the approval of the Spot Bitcoin ETF by the U.S. Securities and Exchange Commission – provided great enthusiasm and optimism for the broader cryptocurrency market. This has given Bitcoin and most other leading cryptocurrencies legitimacy and thus resulted in massive institutional investment in the digital market.
By January 2024, Bitcoin ETFs had received over $35 billion in net inflows IBIT by BlackRock leader.
In addition to these market events, Donald Trump’s November victory brought renewed regulatory hope for cryptocurrencies. His promises to make the US the “crypto capital of the planet” and vows for clearer regulations further boosted market sentiment.
By December, Bitcoin’s price had reached an all-time high of $108,135, contributing to a total cryptocurrency market value of $3.9 trillion since then, up from $1.7 trillion in early 2018.
Featured image from Tech Xplore, chart from TradingView