DWF Labs Reports 2024 Crypto Market Sees Meme Coins Outperforming Other Sectors
The total crypto market cap has surpassed $3.3 trillion as Bitcoin price approaches the $100K target. On-chain trading volume increased significantly in Q4, driven by demand from retail traders and institutional investors.
Bitcoin's trading volume reached over $154 billion in November, matching levels seen during the 2021 peak.
On-chain data from Santiment indicates a 32% surge in overall crypto trading volume within the past week, with profit distribution from Bitcoin to altcoins accelerating.
DWF Labs’ Report on the 2024 Crypto Market
A report by Dubai-based DWF Labs highlights that the election of President-elect Donald Trump has altered the crypto industry's dynamics. Trump reportedly holds over $7 million in digital assets, primarily in Ethereum.
Institutional confidence in the crypto market has notably increased post-election. Recent reports indicate substantial cash inflows into US spot Bitcoin ETFs, totaling over $9 billion in the past eight weeks, led by BlackRock’s IBIT.
The Coinbase Premium, indicating a higher BTC spot price compared to Binance, has been prominent in the past two months due to institutional investor activity.
DWF Labs also reported growth in the DeFi and stablecoin sectors, evidenced by rising supplies of Tether and Circle’s USDC, signaling increased liquidity in the market.
While the DeFi sector has expanded, meme coins have experienced the highest gains recently, with a total market cap of around $111 billion and an average daily trading volume of $21 billion.
DWF Labs concluded that the 2024 crypto market reflects significant maturation, showcasing distinct performance patterns across sectors and differing behaviors between institutional and retail investors. Bitcoin's strong performance coincided with notable growth in various sectors, particularly in meme tokens.
What’s Next?
The crypto market is projected to grow significantly in the upcoming months, fueled by increasing demand from institutional investors and potential nation-state involvement. The success of MicroStrategy Inc (NASDAQ: MSTR) has encouraged other companies to adopt Bitcoin strategies.
Wall Street experts anticipate that more countries may establish strategic Bitcoin reserves if the United States approves such measures early next year.