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2024 can be said to be a crossroads for cryptocurrencies. The strong rise of BTC is in sharp contrast to the weakness of the broader altcoin market. It was not until the end of the year that a shift in regulatory policies made the prospects for altcoins bright.
The current cryptocurrency narrative is being readjusted. This article will review the crypto market overview in 2024 and look forward to the crypto market in 2025. The following 👇🏻 will be described in four parts:
1) The bull market cycle
2) Market sentiment returns
3) Imbalance between supply and demand
4) Solana’s Road to Revival: Rising from the Ashes
1) The bull market cycle repeats 🔻
The cyclical strategy is on the right track and macroeconomic reality has been in line with expectations.
So far, we know that Bitcoin halving is not the main catalyst for the cryptocurrency market cycle, but the liquidity cycle. Since the beginning of this year, BTC has risen by more than 130%, and all of this is inseparable from the support of the Federal Reserve. In fact, the Federal Reserve's liquidity has been steadily declining over the past 9-10 months.
2) Market sentiment returns 🔻
2024 is a strange year for the crypto market. On the one hand, most mainstream currencies did not return to their historical highs until the end of the year, and the broader altcoin market also saw a moment of recovery. However, it should be noted that the crypto market has been falling for more than 6 months this year, and even at the end of August this year, the prices of many altcoins hit new lows.
But crypto Twitter has been at loggerheads for much of the year. The gloomy sentiment for 2024 stands in stark contrast to the positive price action. What’s causing this rift?
1️⃣ First is Bitcoin’s dominance, which has surged 130% so far this year, reaching its highest level of dominance in three years.
2️⃣ The second is decentralization, a few currencies rose, some currencies rose slightly, but most currencies fell or remained flat.
3) Supply and demand imbalance
As we have mentioned in many of our reports over the past year, the cryptocurrency market faces a massive supply and demand imbalance. Simply put, the demand for cryptocurrencies is not keeping pace with the overall cryptocurrency supply.
Aggregators like CoinMarketCap list over 10,000 tokens, up 10x from 1,500 in 2017, and apps like pump.fun make token creation easy, with over 4 million tokens issued and over 50,000 tokens on Solana’s Raydium since January of this year.
4) Solana’s road to revival: rising from the ashes 🔻
In the last cycle, Solana’s price soared from $1 to $260 in a year, thanks to the “altcoin Layer 1 investment boom” and its close relationship with Sam Bankman-Fried (SBF) (known as the “SBF concept coin”).
Although the Solana ecosystem was still in its early stages, the enthusiasm attracted teams like Jito, Drift, and Helium, all of which later became the cornerstones of the Solana network.
However, what goes up must come down. Like Icarus who flew too close to the sun, Solana eventually fell. By 2022, with the revelation of the FTX fraud, the onset of the bear market, and questions about the stability of its network, Solana fell like a phoenix and turned to ashes.
From peak to trough, SOL experienced a 96% plunge 👇
The meme coin “Bonk” airdropped 50% of its supply to the Solana community on Christmas Day 2022. At the time, SOL was trading at $11 and the market had little confidence in it.
However, $BONK sparked a spark of hope. A few days later, SOL bottomed out at $8, capping off a brutal year.
In 2023, Solana began to rise from the ashes. The Solana core team, which had endured the pain of 2022, redoubled their efforts, with projects like @DriftProtocol, @jito_sol, and @TensorFdn focused on serving their loyal user base. Solana steadily rebuilt, with continued innovation driving recovery.
Additionally, SOL data suggests that SOL is re-pricing, with lower-level activity indicating strong fundamentals, suggesting more upside compared to ETH
📍As we move into 2025, there are still some issues such as:
——Is the SOL repricing over?
——Will memecoin disappear?
——Can Base grab market share?
——Will ETH fight back?
🔹Original compilation link: https://twitter.com/Delphi_Digital/status/1866563703438708796?t=WFlVFHmPhrPeC-2loAzRmg&s=19