Global Crypto Activity Surges in 2024, Boosted by U.S. Bitcoin ETFs
In 2024, cryptocurrency activity globally has surged, surpassing levels seen during the 2021 bull market.
Chainalysis reports that the value of global crypto transactions reached new heights between Q4 2023 and Q1 2024, according to its annual Global Crypto Adoption Index.
Chainalysis, using a revised methodology to assess 151 countries from Q3 2021 to Q2 2024, found that global crypto activity peaked at 0.8 points in Q4 2024, exceeding the previous high of 0.7 points in Q4 2021. However, by Q2 2024, the index had declined to 0.68 points, reflecting a decrease in global crypto engagement.
The spike in activity in 2024 is largely attributed to the introduction of spot Bitcoin ETFs in the U.S. in January. Chainalysis noted that this launch led to increased Bitcoin transactions across all regions, particularly boosting institutional transfers and activity in high-income areas like North America and Western Europe. Meanwhile, stablecoin usage grew significantly in lower-income regions, such as Sub-Saharan Africa and Latin America.
READ MORE:
Bitcoin Whales Scoop Up $10 Billion in BTC While Short-Term Holders Face PressureThe rapid adoption of spot Bitcoin ETFs has been unprecedented, according to Matt Hougan of Bitwise. Despite experiencing significant outflows, with U.S. ETFs seeing $1.2 billion in withdrawals within eight days in September 2024, the ETFs are being adopted at an unprecedented rate.
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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