Crypto market shows signs of growth in Q4 2024
A new joint report by Glassnode and Coinbase Institutional highlights significant developments in the crypto market during the fourth quarter of 2024.
The report points to a maturing ecosystem, driven by increased institutional participation, rising activity in Ethereum’s (CRYPTO:ETH) Layer 2 solutions, and stablecoin adoption.
According to the report, despite limited price movement, several key metrics signal market stability and growth.
Spot exchange-traded funds (ETFs) have played a crucial role, with U.S. spot Bitcoin (CRYPTO:BTC) ETFs accumulating nearly $60 billion in assets under management in just nine months.
Spot Ethereum ETFs, which launched mid-year, gathered $7.1 billion by the end of Q3.
These ETFs have increased market liquidity, making crypto more accessible to institutional investors.
Layer 2 solutions on the Ethereum network, including Arbitrum (CRYPTO:ARB) and Base, have also experienced significant growth.
Daily active addresses and transaction volumes are on the rise, driven by lower fees after Ethereum’s Dencun upgrade.
These improvements are attracting more users and developers to the Ethereum ecosystem, further expanding the on-chain economy.
Stablecoins have reached an all-time high supply of $170 billion by the end of September.
Glassnode analysts attribute this growth to stablecoins’ integration into payment systems and their increasing use in cross-border transactions.
Regulatory clarity, particularly following the European Union’s Markets in Crypto-Assets (MiCA) regulations, has also contributed to stablecoins' mainstream acceptance.
The report also touches on the current market sentiment, which has shifted towards fear during a period of price consolidation.
According to Coinbase Institutional, this could signal a potential buying opportunity, as fear often precedes rallies in crypto markets.
The combination of growing institutional interest and positive trends in stablecoins and Layer 2 solutions could set the stage for future market growth.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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