Key indicators such as adoption, transaction rates, and activity levels peaked in 2024, giving blockchain technology a significant boost. Despite ongoing regulatory hurdles, blockchain is booming, as evidenced by this expansion.
Blockchain networks have proven their potential to thrive and are moving towards wider adoption, as regulators are watching the industry.
On-Chain Transactions Hit New Heights
However, the most notable achievement that blockchain achieved in 2024 was transaction volume. In December, on-chain transactions were worth $817 million, which was well above the previous high of $730 million in January 2022. This meant that the development increased the annual run rate by $10 billion.
Fredrik Haga, CEO of Dune Analytics, said the number of transactions showed that activity levels were similar to the peak in 2021. This shows that blockchain is becoming more important in the global banking system.
Okay so prices are going up, but what did real onchain adoption look like in 2024!? Let’s look at the data 👇
In 2024 unchain adoption reached 2021 levels while also surpassing previous highs in terms of transfer volume and transaction count!
Overall onchain adoption – almost… pic.twitter.com/IImeJjNtIj
– hagaetc.eth (@hagaetc) January 2, 2025
Acceptance of Reduced Transaction Fees Drive
Another big change in 2024 was the big drop in blockchain transaction fees. Transaction costs decreased from $2 billion in November 2021 to $500 million in December 2024.
This limitation removes a major roadblock to the adoption of blockchain in all spheres of life, such as individuals and companies. This can make blockchains more efficient and scalable as transactions become cheaper and thus make their way into many applications across various industries.
Management Challenges During Rapid Growth
Blockchain networks have experienced extraordinary growth while navigating a difficult regulatory environment. While popularity is growing, the industry has faced increased scrutiny, especially in relation to decentralized finance (DeFi) and cryptocurrencies.
Some of the expected issues and problems aside, the on-chain industry continues to pursue limited structures, and thus, the role played by blockchain in the global economy is expanding.
In 2024, an important event – the approval of the Spot Bitcoin ETF by the US Securities and Exchange Commission – provided the broader crypto market with great excitement and optimism. This gave Bitcoin and many other cryptos legitimacy and thus brought the investment of large institutions to the digital market.
By January 2024, Bitcoin ETFs had raised more than $35 billion, with BlackRock’s IBIT leading the way.
In addition to these market events, the victory of Donald Trump in November brought the prospect of regulation of cryptocurrencies as well. His promises to make the United States the “crypto capital of the planet” and his vow about clear regulations increased market sentiment even more.
By December, the value of Bitcoin had reached an all-time high of $108,135, and contributed to the total cryptocurrency market value of $3.9 trillion since then, up from $1.7 trillion at the beginning of 2018.
Featured image from Tech Xplore, chart from TradingView