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Highlight Review! Major Industry Events from the First Half of 2024
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1. Bitcoin Spot ETF Approved and Listed
On January 10, 2024, Eastern Standard Time, the SEC approved 11 Bitcoin spot ETFs for listing in the United States, and they began trading the following day. The application for Bitcoin spot ETFs went through ten years of negotiation and setbacks before finally achieving success.
According to market data, the cumulative net inflow of Bitcoin spot ETFs has exceeded $20 billion so far. The market still primarily sees inflows, and this figure is expected to further expand.
The approval of Bitcoin spot ETFs signifies that the cryptocurrency industry is entering a "turning point" phase, becoming more integrated with the traditional finance system. By introducing Bitcoin spot ETFs, regulatory agencies can oversee the operation and disclosure requirements of the funds, thereby enhancing market transparency and compliance, and attracting more investors to participate.
2. Ethereum Cancun Upgrade (Dencun) Completed
Transaction congestion and high gas fees have been significant factors limiting the large-scale adoption of blockchain networks. The arrival of the Cancun upgrade marks the beginning of Ethereum's expansion journey, enhancing network scalability. Higher transaction throughput and lower transaction fees will enable more projects to be developed on Layer 2 and attract more users, significantly increasing the likelihood of generating high-quality projects.
In addition to facing competition from other public blockchains, the development of Layer 2 technology and the advancement of modular blockchains may gradually change Ethereum's role. Ethereum may no longer be the only settlement layer option, potentially altering its status and function within the crypto ecosystem.
3. Bitcoin Price Breaks $73,000, Setting a New All-Time High
Influenced by the approval of Bitcoin spot ETFs and the anticipation of Bitcoin halving, the price of Bitcoin surpassed $73,000 in March 2024, reaching a new all-time high.
The new Bitcoin price ignited market enthusiasm, and driven by the rise in Bitcoin prices, other mainstream cryptocurrencies also showed an upward trend.
4. Solana Network Rebuilds and Makes a Comeback
After weathering the impact of the FTX collapse, the departure of major star projects, and the flight of stablecoins, the Solana network is once again shining. In addition to changes in external market conditions and continuous self-rescue efforts, the emergence of numerous popular meme tokens has further propelled Solana back to the center stage.
On the Solana network, meme tokens such as SILLY, WIF, BONK, BOME, and SLERF have successively sparked a wealth effect, attracting a large influx of users to the Solana network. Its high TPS and low gas fees provide an excellent trading experience. Meanwhile, the price of SOL also benefited, once breaking through $210.
5. Bitcoin Halving Completed
On April 20, 2024, Bitcoin successfully completed its fourth halving at block height 840,000, reducing mining rewards from 6.25 BTC to 3.125 BTC.
Bitcoin halving decreased the supply of Bitcoin, increasing its scarcity, which in turn led to a higher demand for Bitcoin in the market, influencing its price. Additionally, Bitcoin halving is often seen as a positive factor driving a Bitcoin bull market that further impacts the development of the entire industry.
6. Ethereum Spot ETF Approved
Following the approval of the Bitcoin spot ETF on May 24, the SEC approved the first batch of 8 Ethereum spot ETFs to be listed in the United States, marking another milestone for cryptocurrency. According to the latest news, the Ethereum spot ETFs will begin trading on July 23.
The consecutive approvals of Bitcoin spot ETFs and Ethereum spot ETFs have set a benchmark for the legitimacy of the cryptocurrency industry, further pushing cryptocurrencies into the mainstream. The integration with the traditional financial system has become an indispensable trend for achieving the large-scale adoption of cryptocurrencies.
7. Memecoins Rise to Dominate the Market
Throughout 2024, despite the launch of many highly anticipated star projects, their token prices have not performed as expected, making them less than ideal investment choices for retail investors. In contrast, Memecoins have become the focus of the market. Powered by strong market consensus and the potential for hundredfold to thousandfold wealth effects, Memecoins have quickly attracted significant attention and capital inflows.
The rise of the Memecoin wave signifies a decline in VC-backed tokens from their pedestal, reflecting a shift in community users' willingness to support the current market distribution model. Star projects are dominated by VCs, preventing retail investors from participating, with limited or even no profitability in secondary markets. In contrast, Memecoins offer retail investors a chance for fair participation and profit sharing.
8. Impact of the U.S. Election on the Cryptocurrency Market
Influenced by the U.S. presidential election, tokens related to the two presidential candidates began to show active performance. Especially after the recent shooting incident involving Trump, Trump-related tokens and a multitude of newly minted Memecoins quickly swept through the cryptocurrency market.
Besides the celebrity effect of the presidential candidates themselves, their attitudes towards the cryptocurrency market also impact the entire crypto market. Recently, as Trump's approval ratings continue to rise and he shows support for cryptocurrencies during his campaign, this has been positive news for the crypto market, leading to a resurgence in the market.
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