2024: Crypto's most transformative year yet

The dust from the cryptocurrency meltdown of 2022 hasn't quite settled yet, but the industry reemerged in 2024 with its most pivotal year yet. 

Even before President-elect Donald Trump pledged to make the U.S. the "crypto capital of the planet," it was already an important year for the crypto community as it gained more mainstream acceptance among traditional financial institutions.

“It’s pretty remarkable just to take a step back and think of how far the industry has come, if you look at some of these key inflection points, like the spot Bitcoin ETFs being approved just this year, and the ethereum ETFs being approved,” Patrick Kirby, policy counsel at Crypto Council for Innovation, said in September.

Victories followed the rest of the year, with bitcoin hitting new records, legal cases and electoral wins setting the stage for crypto's powerful role in the second Trump administration.

Here are some of the pivotal moments over the last 12 months:

Crypto goes mainstream

One of the clearest indicators of the crypto market maturing and becoming more mainstream is traditional financial institutions embracing it through popular investment vehicles known as exchange traded funds. An ETF — a basket of securities that trades like a stock — allows investors exposure to digital assets without directly owning it.

On Jan. 10, the U.S. Securities and Exchange Commission approved 11 spot bitcoin ETFs, clearing them to start trading for the first time in U.S. history. Since then, the ETFs have amassed over $120 billion in BTC, which amounts to 5.76% of its market cap, according to data compiled by CCN.

U.S. spot Ethereum ETFs (ETH), which have also been some of the biggest winners this year, attracted $14.28 billion in net assets, accounting for 2.93% of ETH’s market cap.

The rapid growth of the exchange traded funds shows increasing comfort levels with crypto among mainstream institutions.

“It’s conceivable that spot bitcoin ETFs could account for 10% or even 20% of bitcoin's market cap — maybe even more,” said Sumit Roy, senior ETF analyst at trade publication etf.com.

Crypto crime & punishment

In February, Frank Ahlgren III of Austin, Texas was indicted for underreporting nearly $4 million in bitcoin capital gains, the first Department of Justice indictment for cryptocurrency tax evasion. The case highlighted increased scrutiny on crypto tax compliance. Ahlgren was sentenced to two years in prison.

In March, Sam Bankman-Fried, founder of the collapsed FTX cryptocurrency exchange, was sentenced to 25 years for fraud and money laundering — the most severe punishment for crypto-related crime to date. The firm starts bankruptcy payouts next year.

In early December, Alexander Mashinsky, founder and former CEO of the failed cryptocurrency platform Celsius Network, pleaded guilty to federal fraud charges. He admitted that he misled customers and illegally manipulated the price of Celsius’ proprietary token while secretly selling his own tokens at inflated prices. He is set to be sentenced in April. 

The crypto crackdown that occurred under the Biden administration could change under Trump, who has nominated pro-crypto Paul Atkins to take over the Securities and Exchange Commission. 

Crypto gets political

The 2024 presidential election transformed the status of crypto from a niche movement to a power player in U.S. politics.

Crypto donors surpassed traditional heavyweights like oil and gas, pharmaceutical and Wall Street. The crypto industry contributed a record $238 million this election season, according to data compiled by blockchain analytics platform Breadcrumbs and FOX Business.

In some cases, crypto-funded ads didn’t even mention crypto. This led advocacy groups like Public Citizen to raise questions about crypto’s growing power in politics and who will hold major players accountable.

“This tsunami of corporate crypto cash is a brazen and unprecedented attempt by for-profit businesses to force their private, pecuniary priorities ahead of the public interest,” said Ray Claypool, author of the Public Citizen report.

Crypto money is already filling coffers for the 2026 midterms. At least $128 million has been recorded, with the biggest crypto industry super PAC Fairshake allocating $103 million and Ripple’s CEO Brad Garlinghouse committing $25 million. 

Bitcoin surges with more active users

Bitcoin surpassed $100,000 about a month after Trump’s reelection and continued to set new records in December, fueling user activity and broader interest in cryptocurrencies.

The number of daily crypto users around the world surged to all-time high of 18.7 million in early December, according to Token Terminal data. The industry is also attracting a wider variety of investors.

Research from Coinbase suggests that crypto owners are not uniform in how they vote and don’t always fit the stereotype of a “hoodie wearing tech bro.” The research found 18% of the crypto owners are moms with a child at home, 10% are small business owners and 41% listen to country music.

Landmark legislation

The most ambitious piece of crypto legislation in years cleared the U.S. House in May, nearly a year after it was introduced. Known as the Financial Innovation and Technology for the 21st Century Act, or FIT21, its passage with a bipartisan vote was notable.

“This was a remarkable inflection point for the industry, where a number 71 Democrats joined over 200 Republicans in passing a market structure bill,” said Patrick Kirby of the Crypto Council for Innovation.

The bill, which would provide more regulatory guidelines for crypto companies, is now in the Senate, where analysts say there is an appetite to craft into something more ambitious.

Memecoin mania

Despite the crypto industry maturing, it’s still memecoins that are capturing popular imagination. In 2024, memecoins became the fastest-growing crypto segment, with an average return rate of 1,300%, according to data compiled by Chain Catcher. 

Fartcoin, launched in October, reached a peak valuation of $836 million. Another token called the Patriot — created after Trump's reelection — saw a 626% jump within a week, reaching a market cap of over $73 million. According to its website, the Patriot community commissioned a 22-foot bronze statue of Trump with a raised fist, set to be unveiled at his inauguration in January.

Solana has emerged as the primary blockchain for memecoin activity, accounting for 89% of new token launches, according to The Block.

States embrace crypto

Ohio Rep. Derek Merrin has introduced a bill to create a bitcoin reserve in the state treasury, allowing it to invest in bitcoin as a strategic hedge against dollar devaluation and position Ohio as a leader in government cryptocurrency adoption. Pennsylvania and Texas have passed similar legislation.

Some lawmakers like Texas Rep. Giovanni Capriglione think a bitcoin reserve could help fight the inflation.

"Probably the biggest enemy of our investments is inflation," Capriglione said on Spaces on X, quoted by Markets Insider. "A strategic bitcoin reserve, investing in bitcoin, would be a win-win for the state."