2024 has been colossal for bitcoin, and with just a handful of days left in the year, its dominance now stands at 56.8% of the $3.29 trillion crypto economy. Back in January, bitcoin held a lower 50.3% of the market, which was then valued at $1.65 trillion.
Bitcoin’s Meteoric Rise in 2024 Leaves Ethereum and Others Lagging
Since Jan. 1, 2024, bitcoin’s share of the crypto economy has grown by 6.5%, now commanding 56.8% of the $3.29 trillion market. It’s been a standout year for the leading digital currency. On that first day of 2024, bitcoin traded at $42,543 per coin, securing a market capitalization of $832.85 billion while the entire crypto market stood at $1.65 trillion. On the same day, ethereum’s performance was stronger than today, boasting a market valuation of $274 billion, which accounted for 16.6% of the total crypto economy.
ETH/BTC ratio.
Fast forward to today, ether’s share has dipped by 4.4%, landing at 12.2% of the current $3.29 trillion market. At the start of the year, ether traded at $2,285 per unit, equivalent to 0.0686 BTC. Today, however, a single ether is valued at 0.03537 BTC. While it’s clear that the U.S. dollar lost purchasing power against bitcoin over the year, analyzing this through the lens of stablecoins adds an intriguing twist.
Take tether (USDT), for instance—on Jan. 1, 2024, $1 USDT was worth 0.00002608 BTC. Today, that same dollar’s tether equivalent fetches just 0.00001059 BTC. XRP has had an interesting run in 2024, making gains against BTC. Back in January, XRP held the sixth-largest market cap in the crypto space, but it has since climbed to the fourth spot, just below tether. At the year’s start, one XRP was worth 0.00001607 BTC; today, it’s risen to 0.00002274 BTC.
Other crypto trends paint a different picture. BNB, for instance, traded at 0.008108 BTC 360 days ago but has dipped to 0.007344 BTC today. Similarly, solana (SOL) started the year at 0.002669 BTC and now trades at 0.00196 BTC. Beyond its growing institutional adoption, bitcoin has made significant headway this year in non-fungible tokens (NFTs), tokenization, and decentralized finance (defi) applications.
In the past year, BTC-based NFTs have generated billions in sales, with Bitcoin’s blockchain standing out for having some of the cleanest activity (minimal wash trading) among dozens of NFT-focused blockchain networks. The network’s influence in defi is also notable, with a couple billion locked into staking platforms and lending apps. Additionally, a handful of tokens built on the BRC20 standard and Runes protocol coins have gained attention, carving their own niche and multi-million-dollar market caps in the crypto world.
Bitcoin’s climb in 2024 reflects more than just market growth—it’s a testament to increasing trust from both institutional players and retail defi enthusiasts. As digital assets, both emerging and established, ride the waves of fluctuating performance, the sector’s confidence continues to pivot, with BTC remaining at the center of attention.
Looking ahead, BTC’s evolving ecosystem could experience more shifts as rival digital assets strive for renewed momentum. Interoperable technologies and niche applications may further enhance the network’s importance. As 2024 winds down, the crypto space seems primed for groundbreaking developments in the year ahead, where collaboration, adaptability, and possibly even strategic nation-state reserves could define its future.
