Market Pulse Q3'2024

 

Key Takeaways

Three factors are boosting our outlook for Q4’24 and into 2025:

 

Ecosystem developments: 

 

While the initial adoption of spot ETH ETFs fell short of expectations, key metrics in the Ethereum ecosystem remain strong and growing. Meanwhile, Solana continues hitting new milestones, emerging as a stronger competitor in the smart contracts space.

 

Institutional adoption:

 

More public pension funds joined Wisconsin in allocating to spot BTC ETFs. Sony announced an Ethereum L2, Solana is getting its first private credit fund, PayPal’s PYUSD stablecoin hit $1 billion in market value, and Visa will help institutions issue fiat-backed tokens on Ethereum.

 

Easing and elections:

 

The end of the Fed’s tightening cycle and China’s massive stimulus program are increasing global liquidity. Regardless of November’s election outcome, the growing importance of “crypto voters” suggests a more favorable outlook for bipartisan progress in the next several years.

Strengthening competition in smart contracts and bitcoin’s role as a pristine asset continuing pushing forward a strong case for diversified crypto investing. With bitcoin’s recovery phase potentially in its late innings, monetary easing gaining momentum all across the globe, and a favorable regulatory outlook emerging in the US, conditions seem ideal for the current cycle to continue rhyming with previous ones and for the asset class to potentially enter a new bull phase as 2024 comes to an end and we head into 2025.*