ARK Invest's "Big Ideas 2025" report, released on February 4, highlights significant developments in the cryptocurrency space in 2024. Bitcoin's annual volatility reached a record low, while stablecoin transaction values surpassed those of Visa and Mastercard.
Bitcoin's success in 2024 was attributed to the launch of 11 spot exchange-traded funds (ETFs) in the US in January. By year's end, these ETFs had accumulated over $100 billion in net assets. Bitcoin's inflation rate also fell to 0.9% after the halving in April, marking the first time its issuance rate was below gold's long-term supply growth.
Stablecoins emerged as a dominant blockchain use case in 2024, with annualized transaction value reaching $15.6 trillion, exceeding Visa's and Mastercard's by 119% and 200%, respectively. While the number of stablecoin transactions was lower than Visa and Mastercard, the value per transaction was significantly higher.
Regulatory attention on stablecoins intensified in 2024. Senator Bill Hagerty introduced the Clarity for Payment Stablecoins Act of 2024, building on previous proposals. A bipartisan bill to establish a regulatory framework for stablecoins was also introduced by Senators Kirsten Gillibrand and Cynthia Lummis. With Republicans controlling both houses of Congress after the November elections, passing comprehensive stablecoin legislation became a priority for establishing clear crypto guidelines.