By Charles Yan
As we close out 2024, the cryptocurrency industry has seen various trends and innovations shaping its progress. From Bitcoin’s increased recognition as a store of value to the rise of meme coins and decentralised finance (DeFi) applications, crypto has firmly entrenched itself as a powerful force in global finance and technology. What trends defined the industry in 2024, and what can we expect from the crypto space moving forward into 2025? Intchains Group Limited (ICG) shares more into these trends and their implications for the future.
Key Innovations and Trends in 2024
One of the most notable developments has been the growing recognition of Bitcoin as a store of value. Changes in U.S. accounting standards allowed fluctuations in Bitcoin’s fair value to be reflected in income statements and balance sheets. This shift has incentivised more companies to accumulate Bitcoin as part of their reserves, further cementing its status as a trusted asset, particularly for institutional investors.
A significant milestone in 2024 has been the success of spot crypto exchange-traded funds (ETFs). IBIT, or the BlackRock Spot Coin ETF, became the fastest ETF to reach a $10 billion scale, a significant milestone. Spot crypto ETFs offer a regulated and convenient way for traditional investors to gain exposure to crypto markets, broadening the appeal and accessibility of crypto assets.
The rise of meme coins also continued in 2024, particularly during the U.S. election season. Coins like Dogecoin and MAGA Coin gained traction, fuelled by social media trends and political movements. For example, Dogecoin once saw a huge rise of 30 per cent in October 2024 after being mentioned by Elon Musk on X. This highlighted a shift where cryptocurrencies are increasingly seen not just as financial instruments but also as tools for digital expression and engagement in cultural and political discourse.
Emerging technologies, such as zero-knowledge proofs, also gained momentum. Zero-knowledge proofs provide enhanced privacy and scalability for blockchain networks, improving the security and efficiency of blockchain applications and enabling new use cases for decentralised technologies.
Drivers Behind These Trends
Regulation has been a major catalyst for growth. The U.S. District Court for the Northern District of Texas ruling found that the SEC’s Dealer Rule, which sought to regulate DeFi protocols, exceeded its authority. This decision, alongside Europe’s passage of the Markets in Crypto Assets Regulation (MiCA), has provided clearer, more predictable rules, encouraging businesses to innovate and invest in crypto with greater confidence.
Monetary policy also played a significant role in 2024. The Federal Reserve’s decision to cut interest rates in September signalled the beginning of a global era of monetary easing. Lower interest rates often drive investment into interest rate-sensitive assets like cryptocurrencies. As traditional markets faced uncertainty, more investors turned to crypto as an alternative store of value, helping fuel its growth.
The continued rise of institutional adoption has been another major factor. Companies such as MicroStrategy, Metaplanet, and Intchains, which integrated crypto into their treasury strategies, saw strong stock performance in 2024. This trend encouraged other large institutions to follow suit, increasing liquidity in the market and driving prices upward.
Finally, technological advancements in blockchain, including zero-knowledge proofs and homomorphic encryption, have helped enhance the security, scalability, and privacy of blockchain applications, creating new opportunities for the crypto industry.
Trends that shaped 2024
Several key developments have been important to watch in 2024, and these trends may continue into 2025. Regulatory changes could continue to evolve, as countries compete to create more crypto-friendly environments. This regulatory competition may lead to further easing and clearer frameworks, encouraging more nations to embrace and regulate cryptocurrencies.
The growth of certain crypto-based applications has also been notable in 2024. Online prediction markets like Polymarket, as well as payments systems (e.g., PayPal, Stripe) and social platforms (e.g., X), have gained significant traction, bringing new use cases for cryptocurrencies into the mainstream.
From ICG’s perspective, the company has started web3 applications explorations, including the launch of Goldshell Pay, a one-stop payment solution for global merchants, and the upcoming release of a hardware wallet in late 2024 to expand the crypto payments ecosystem. ICG has also been working on staying ahead of the technology curve, with the launch of new ASIC mining hardware expected in early 2025 to seize new technology opportunities. We also see the need to seize the meme trend and utilise ICG’s advantage in ASICs on them.
Outlook for 2025
Looking ahead to 2025, the outlook for cryptocurrencies remains optimistic, with several significant developments expected. One of the most important trends is the potential for countries and regions such as the United States to incorporate cryptocurrencies into their national reserves. This would mark a major shift, further legitimising cryptocurrencies as an asset class and cementing their role in the global economy.
The rise of altcoins is likely to be a key theme in 2025. As Bitcoin’s market dominance continues to decrease, cryptocurrencies like Dogecoin, Ripple, and Solana could take centre stage, particularly with the growing interest in their ETFs. The application and approval of spot ETFs for altcoins could spark an “altcoin season,” leading to increased diversification and new dynamics in the market.
Technological and application innovations are expected to continue driving the industry forward in 2025. Companies will explore new uses for blockchain technology, including the tokenisation of real-world assets and further advancements in payments. These innovations will help solidify crypto’s role as a central component of the global financial system.
As we reflect on 2024 and look ahead to 2025, the crypto industry is poised for continued growth. Key trends such as Bitcoin’s role as a store of value, the rise of crypto ETFs, the ongoing popularity of meme coins, and advances in blockchain technologies have paved the way for an exciting future. With institutional adoption on the rise, regulatory clarity improving, and new technological applications emerging, the cryptocurrency ecosystem is set for further expansion. As we move into 2025, the increasing integration of cryptocurrencies into both the global economy and traditional financial markets promises to be one of the most significant stories of the decade.
Charles Yan is the, Chief Financial Officer at Intchains Group Limited