Cryptocurrency users around the world have become more active in 2024, with the total value of global crypto transactions surpassing a significant milestone first reached during the 2021 bull market.
The total value of global cryptocurrency activity has significantly increased in the period between the fourth quarter of 2023 and the first quarter of 2024, the blockchain intelligence firm Chainalysis reported in its fifth annual Chainalysis Global Crypto Adoption Index.
In its latest crypto adoption report, shared with Cointelegraph, Chainalysis applied a new adoption index methodology, analyzing a total of 151 countries for each quarter from Q3 2021 to Q2 2024. The firm measured the level of adoption in the overall index value normalized on a scale of 0 to 1, where 1 reflects the highest adoption.
Global index score by quarter from Q3 2021 to Q2 2024. Source: Chainalysis
During the analyzed period, global crypto activity peaked at 0.8 points in Q4 2024, surpassing the previous high of 0.7 points in Q4 2021. However, in Q2 2024, the index dropped to 0.68 points, indicating a slowdown in global crypto activity.
Q4 2021 emerged as one of the most historic periods for crypto, as Bitcoin reached $68,000 for the first time on Nov. 9, 2021.
What drove the spike in crypto activity in 2024?
According to Chainalysis, the launch of spot Bitcoin (BTC) exchange-traded funds (ETF) in the United States in January 2024 was the root cause of a massive spike in crypto use in 2024.
“The launch of the Bitcoin ETF in the US triggered an increase in the total value of Bitcoin activity across all regions,” Chainalysis said.
The surge was particularly notable in the year-over-year (YoY) dynamics of institutional transfers and regions with higher-income countries, such as North America and Western Europe.
Global YoY growth by asset type and transfer size between July 2023 and June 2024. Source: Chainalysis
However, the YoY growth of stablecoins was higher among retail and professional-sized transfers, marking use cases in low-income and lower-middle-income countries in regions such as Sub-Saharan Africa and Latin America.
Spot Bitcoin ETFs experiencing faster adoption than any other ETF in history
Based on Chainalysis’ findings, the launch of Bitcoin ETFs in the US was a historic moment for the entire industry worldwide.
Related: Bitcoin ETFs need time to be ‘instrument of adoption’ — Bianco Research CEO
According to Matt Hougan, chief investment officer at the crypto asset manager Bitwise, wealth advisers have been adopting spot Bitcoin ETFs faster than any new ETF in history.
Source: Eric Balchunas
The rapid adoption of spot Bitcoin ETFs comes despite massive outflows. In September 2024, 11 US-based spot Bitcoin ETFs saw $1.2 billion in combined outflows in just eight days.
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