Regardless of some difficulties, the cryptocurrency market ended 2024 on a powerful observe, reaching an all-time excessive (ATH) market cap of $3.91 trillion in December.
In a current perception report revealed by Binance Analysis, the analysis arm of the cryptocurrency change, the market’s development was largely influenced by Bitcoin’s stellar efficiency and regulatory optimism.
Bitcoin Turns into seventh Largest World Asset
Following the bitcoin halving occasion in April 2024, the main cryptocurrency has been on a roll, hitting ATH after ATH. With its newest peak of $108K, bitcoin’s market cap noticed a year-to-date (YTD) development of roughly 123.4%.
Its stellar efficiency in 2024 resulted in it being ranked the seventh largest international asset by market cap, surpassing Saudi Aramco, Silver, and Meta. Regardless of being a comparatively newer asset class in comparison with the extra established ones on the checklist, BTC stood out among the many finest performers in 2024, solely behind Nvidia.
Per the report, bitcoin’s spectacular development was fueled by a number of components, together with optimistic international financial coverage shifts and the approval of spot BTC ETFs in January 2024. These monetary autos strengthened bitcoin’s legitimacy as an asset class, unlocking contemporary capital inflows from institutional buyers.
In simply the primary 12 months, US-based spot Bitcoin ETFs gathered over $50 billion in belongings beneath administration (AUM).
Moreover, the lately concluded United States presidential election additional fueled the rally. Donald Trump’s victory spurred optimism amongst market individuals as expectations of potential regulatory changes beneath the pro-crypto Trump administration heightened.
Curiosity in AI Brokers Explode
The report additionally highlighted the rising curiosity within the rising AI sector of the crypto trade. The AI agents have gotten a scorching subject amongst market individuals, attracting important investments.
Per the report, the sector’s increase was kickstarted by the AI agent Fact Terminal and the GOAT token. Following the token’s success, the sector has continued to evolve as new tasks launch.
With prime brokers’ tokens reaching excessive market valuations, Binance believes this sector may drive large trade development in 2025. The highest AI brokers’ token, VIRTUAL, at the moment has a market cap of $4.2 billion.
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