In 2024, the cryptocurrency market experienced significant changes, including capitalization growth and Bitcoin's strengthening positions.
Cryptocurrency Market Capitalization Growth
The total market capitalization of digital assets in 2024 increased by 97.7%, peaking at $3.91 trillion in mid-December and later consolidating around $3.4 trillion. In the fourth quarter, there was a growth of 45.7%, with an average trading volume of $200.7 billion, 128.2% higher than the previous period.
Bitcoin Dominance
The first cryptocurrency strengthened its position, accounting for 53.6% of the total cryptocurrency market capitalization. In the fourth quarter, Bitcoin's dominance increased by 0.9%. Meanwhile, XRP gained a 2% share, reaching 3.5%, while Dogecoin entered the top seven by market capitalization. Ethereum showed negative dynamics, reducing its share to 11.8%.
Bitcoin vs. Traditional Assets
Bitcoin outperformed all major asset classes both in the fourth quarter and throughout 2024. Bitcoin's returns surpassed other assets, particularly after Donald Trump's election victory, with a price reaching $108,000, a growth of 121.5% since the start of the year. Other traditional indices, government bonds, and gold were less effective.
Overall capitalization growth and Bitcoin dominance in 2024 highlight the increasing influence of cryptocurrencies on global markets and their competitiveness compared to traditional assets.
