Bitcoin and Stablecoins See Significant Growth in 2024

Bitcoin's Record Year in 2024

Bitcoin experienced a remarkable year in 2024, with its annual volatility dropping to a record low of 50%, down from over 100% in 2018. This decline in volatility coincided with a 122.2% return for Bitcoin, making it one of its most successful years to date.

The launch of 11 spot Bitcoin ETFs in the U.S. in January 2024 played a pivotal role in this success. These ETFs amassed over $100 billion in net assets by year-end, marking the most successful ETF launch in history. Additionally, the Bitcoin halving event in April reduced its inflation rate to 0.9%, surpassing gold's long-term supply growth rate for the first time.

Stablecoins Break Records in Transaction Value

Stablecoins also achieved significant milestones in 2024, with their annualized transaction value reaching $15.6 trillion. This figure exceeded the combined transaction values of Visa and Mastercard by 119% and 200%, respectively. While stablecoins processed 110 million transactions per month, significantly fewer than traditional payment networks, the average transaction value was substantially higher.

Regulatory Progress for Stablecoins

The regulatory landscape for stablecoins saw notable developments in 2024. Senators Kirsten Gillibrand and Cynthia Lummis introduced bipartisan legislation to establish a regulatory framework for stablecoins. Later, Senator Bill Hagerty proposed the Clarity for Payment Stablecoins Act, further advancing the discussion.

Following the Republican majority in Congress, Representative Tom Emmer emphasized the importance of passing comprehensive stablecoin and market structure legislation. This bipartisan effort reflects a growing consensus in Congress to create clear regulations for digital assets.

Overall, 2024 marked a year of growth and maturation for both Bitcoin and stablecoins, with significant strides in adoption, regulation, and market performance.