Crypto market to grow ‘dramatically’ by 2024: Coinbase
In the year The cryptocurrency market will grow “exponentially” by 2024, with billions of dollars going into crypto exchange-traded funds (ETFs) and blockchain networks, according to an October 15 report by Coinbase and Glassnode.
According to a report created by David Duong, Head of Institutional Research at Coinbase and the Glassnode Analyst Group, “From the breakout success of spot EFAs to the rise of onchain activity to the increase in trading volume, it's clear that markets are becoming deeper, more liquid, more sophisticated and more accessible.”
In addition, the accelerating adoption of stablecoins and the expansion of Ethereum's layer-2 scaling solutions “reflect the maturity of the market and the expansion of the crypto economy,” the report said.
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In the year In 2024, the crypto market became volatile as investors poured into high-quality assets, the report said.
Bitcoin (BTC)'s three-month spot price volatility is less than 60%, with It has fallen to 130% from its peak in 2021, the data said.
By the third quarter of 2024, stablecoins and BTC have consumed a larger portion of crypto's total market capitalization, according to Glassnode data.
Spot BTC ETFs listed in the United States in January pumped nearly $5 billion into the digital currency in the third quarter of 2024, according to data from Bloomberg and Coinbase.
In the third quarter, the total market capitalization of stablecoins reached an all-time high of nearly $160 billion “as market participants continue to leverage them for a variety of new and existing use cases,” according to Glassnode.
Ether (ETF) continues to see net outflows as investors withdraw money from the Greyscale Ethereum Trust (ETHE), which launched in 2017 as a separate fund structure before converting to an ETF in 2024.
Spot ETH price performance has lagged behind BTC, but a look beyond price reveals a rapidly growing Ethereum ecosystem driven by the strength of new and innovative Layer-2s, the report said.
In the year In 2024, daily active Ethereum addresses increased significantly and transactions increased fivefold compared to the beginning of 2023, according to the report. The report cites the proliferation of layer-2 scaling networks like Coinbase's Base as a catalyst.
Similarly, ETH “has regained significant market share among payment-generating L1 blockchains, recovering from a low of 9% at the end of August to 40% at the end of September,” according to the report.
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