In 2024, Bitcoin saw a remarkable upswing, soaring by 122% as its annual volatility plunged to an all-time low. This pivotal year reshaped the digital asset landscape, as underscored in the “Big Ideas 2025” report released by ARK Invest on February 4.
Bitcoin’s Volatility and Growth
The report highlights a significant development: by the end of 2024, Bitcoin’s annualized volatility dropped to under 50%, a stark contrast to its levels of approximately 80% in 2022 and over 100% in 2018. A key driver of this impressive growth was the launch of what ARK termed the “most successful ETF launch in history.” In January, the approval of 11 spot exchange-traded funds in the U.S. led to an astounding accumulation of over $100 billion in net assets by year’s end.
The Rise of Stablecoins
Moreover, Bitcoin’s inflation rate witnessed a decline to 0.9% following the halving event that occurred in April. This momentous change signified the first time Bitcoin’s issuance rate dipped below gold’s long-term supply growth rate, marking a notable milestone in its evolution.
Stablecoins emerged as a crucial player in the digital asset ecosystem in 2024, solidifying their role as a key use case for blockchain technology. The annualized transaction value for stablecoins skyrocketed to an impressive $15.6 trillion, substantially surpassing the transaction volumes of Visa and Mastercard by about 119% and 200%, respectively. Monthly transaction volumes hit 110 million, which accounted for roughly 0.41% of Visa’s and 0.72% of Mastercard’s total transactions. Interestingly, the average value for stablecoin transactions eclipsed that of traditional payment processors, highlighting their growing significance.
Regulatory Developments
On the legislative spectrum, stablecoin regulation took center stage for pro-crypto Republicans in Congress. Ahead of the November presidential elections, Senator Bill Hagerty put forward the Clarity for Payment Stablecoins Act of 2024, building upon earlier proposals from former House representative Patrick McHenry. Earlier in the year, a collaborative effort from Democratic Senator Kirsten Gillibrand and Republican Senator Cynthia Lummis sought to establish a regulatory framework specifically for stablecoins. Following the Republican Party’s successful bid to capture both houses of Congress in the November elections, Representative Tom Emmer stressed the urgency of advancing comprehensive legislation on market structure and stablecoins. Miller Whitehouse-Levine, head of the DeFi Education Fund advocacy group, remarked on the growing consensus among lawmakers regarding stablecoin regulation—even amidst differing political views.
Through these developments, 2024 marked a year of transformation and progress in the realm of digital assets, setting the stage for further innovations and regulatory clarity in the years to come.
Source: Cointelegraph
