KeyTakeaways:
Bitcoin achieved 123.4% YTD growth, ranking 7th globally by market cap. Ethena’s USDe surpassed DAI as the 3rd largest stablecoin by market cap. Decentralized trading volumes and DeFi TVL reached record highs in December 2024.
In Dec. 2024, the crypto market peaked at US$3.91 trillion, driven by institutional investments and regulatory optimism. Bitcoin played a main role in this surge, hitting an all-time high of US$108,000.
The rally was fueled by news of MicroStrategy’s inclusion in the Nasdaq 100 and continued Bitcoin acquisitions. However, the momentum slowed late in the month after the Federal Reserve adjusted its 2025 interest rate cuts from four to two, resulting in a significant market correction that erased over US$0.5 trillion from the crypto market cap.
Despite this setback, Bitcoin closed the year with a 123.4% growth in market capitalization, positioning it as the seventh-largest global asset, surpassing companies like Saudi Aramco and Silver.
Among the top 10 global assets, Bitcoin was second only to Nvidia in terms of performance. Bitcoin’s Halving event spurred this growth, monetary policy changes, and the anticipation of a more favorable regulatory environment. Bitcoin could further solidify its place among the top global assets in 2025 if these trends continue.
Ethena’s USDe saw a rapid rise in the stablecoin sector, reaching a market cap of US$5.9 billion by the end of 2024, surpassing DAI as the third-largest stablecoin. This success is largely attributed to the high yields offered by staked USDe and the addition of sUSDe as collateral on Aave, a decentralized lending platform.
With this growth, USDe is now positioned as a leading player in the decentralized finance (DeFi) ecosystem.
December also marked a move for decentralized finance, with decentralized spot and perpetual trading volumes hitting all-time highs of US$326 billion and US$356 billion, respectively. The year saw a 370% surge in decentralized perpetual trading volumes, driven largely by platforms like Hyperliquid.
Additionally, decentralized lending and liquid staking protocols achieved record total value locked (TVL) figures of US$55 billion and US$71 billion, respectively. This rapid growth suggests a promising future for the DeFi sector, particularly with expectations of a pro-crypto administration in the U.S.
