1. Introduction
2. The Bull Run
3. Layer 2 Adoption
4. Ethereum Duncan Upgrade
5. Regulatory Progress
6. Crypto Debit Cards
7. What to watch out in 2025
8. Conclusion

Introduction

The year 2024 began with a strong bull market, highlighted by Bitcoin reaching a new all-time high in the first quarter. This surge was further propelled by the highly anticipated Bitcoin halving, which added significant momentum. The blockchain ecosystem saw a notable increase in activity as developers and users flocked to Web3, driving up transactions and engagement. The growing interest in cryptocurrencies was evident in the rising Total Value Locked (TVL) across various protocols.

Despite ongoing challenges from regulatory scrutiny and the SEC, Web3 protocols asserted their influence, positioning themselves as key players not only in global finance but also in global politics. With Bitcoin surpassing the $100,000 milestone and the revival of the NFT market, we close the year 2024 chapter on a high note. Let’s have a look at some of the major events of 2024.

The Bull Run

As 2024 comes to a close, the ongoing bull run has dominated discussions in the crypto space. After a prolonged period of stagnation, the market is experiencing a renewed wave of interest and optimism. While some attribute this resurgence to Trump’s election victory, cryptocurrencies like Bitcoin were already cementing their place in mainstream finance. By October, Bitcoin had been recognized as a legitimate asset class on Wall Street. This enabled the investors to trade it alongside traditional stocks. Similarly, Ethereum gained widespread acceptance as a payment method across businesses in the U.S. and Europe.

Trump’s win undoubtedly acted as a significant catalyst, serving as the final piece in a larger puzzle. The bull market began with a sharp rise in the prices of Bitcoin, Ethereum, and Solana, triggering a ripple effect that boosted altcoins throughout Web3. This rally has not only restored investor confidence but also created a competitive ground for innovation, as developers are now financially incentivized to launch new projects.

While the duration of this bull run remains uncertain, its impact is expected to be highly productive. With anticipated blockchain-friendly policies from Trump’s administration and a greater degree of freedom for the technology, 2025 is poised to bring significant breakthroughs in the Web3 ecosystem.

Layer 2 Adoption

Layer 2 blockchains have tackled one of Web3’s biggest challenges: slow transaction speeds, which have long deterred organizations and users from fully embracing the ecosystem. While Web3 has always promised transparency and security, the compromise on transaction speed was a significant barrier for many.

Layer-2 adoption saw significant growth in 2024, with projects like Arbitrum, Optimism, and Base leading the way in addressing Ethereum’s scalability issues. Arbitrum solidified its position as a leader in the Layer-2 space, surpassing 1 billion transactions thanks to its robust developer community and seamless DeFi integrations. Optimism also made substantial strides with its OP Stack technology, which facilitates modular Layer-2 solutions and encourages ecosystem-wide collaboration through its Superchain initiative.

Base, a Layer-2 solution developed by Coinbase, gained momentum by leveraging Coinbase’s vast user base and streamlined on-ramps. Its adoption was further boosted when Franklin Templeton became the first asset manager to launch a tokenized treasury fund on the network. These developments mark a turning point in Layer-2 technology, driving Ethereum scalability and fostering broader adoption.

Although the concept of layer 2 blockchains has been discussed for years, it’s exciting to see these advancements finally taking shape. As the technology evolves, it is poised to accelerate Web3 adoption and remain a critical part of the ecosystem in 2025 and beyond.

Ethereum Duncan Upgrade

In 2024, Ethereum underwent its most transformative upgrade to date with the activation of the Cancun-Deneb (Dencun) upgrade. This milestone was a crucial step in boosting the network’s scalability and reducing data fees. At the heart of the upgrade was proto-danksharding, a mechanism designed to simplify data availability and enhance transaction throughput, significantly lowering costs for Layer-2 rollups.

Although the changes sparked considerable debate, they were ultimately aimed at empowering developers and setting the stage for future innovations in Ethereum’s development journey. This upgrade further solidified Ethereum’s status as the leading platform for smart contracts and decentralized applications.

Regulatory progress

The year 2024 has been a turning point for cryptocurrency regulation, with significant advancements across various regions. A standout development has been the implementation of the Markets in Crypto-Assets (MiCA) regulation in the European Union. MiCA is a groundbreaking framework that provides a unified legal structure for crypto assets across the EU, bringing much-needed clarity and order to the region’s crypto market.

Throughout its phased rollout, MiCA has introduced key measures, such as rules for stablecoins and licensing requirements for crypto asset service providers (CASPs). This ensures that businesses offering trading, custody, or exchange services in the EU now operate under a standardized regulatory framework, enhancing consumer protection and market transparency.

Outside the EU, other regions have also made notable progress. For instance, the UAE has clarified its VAT policy for crypto transactions, offering businesses clear tax guidelines while reinforcing its reputation as a forward-thinking hub for digital assets.

These regulatory efforts reflect a broader global trend toward establishing clear and consistent rules for the crypto industry. While individual jurisdictions take different approaches, the overarching goal is to balance innovation with consumer protection and financial stability.

This wave of regulation marks a significant moment for the crypto sector, laying the groundwork for sustainable growth and broader adoption. By addressing risks and uncertainties, regulators are helping integrate cryptocurrency more deeply into the global financial system.

Crypto Debit Cards

In 2024, the collaboration between major debit card providers like Visa and Mastercard and crypto projects marked a significant milestone in integrating cryptocurrency into everyday financial transactions. These partnerships led to the creation of debit cards linked directly to users’ crypto wallets, enabling payments at retailers that accept cryptocurrencies.

Additionally, these cards offer the convenience of converting crypto to USD in real time, allowing holders to transact with traditional service providers effortlessly. While the system may not yet be fully optimized, the introduction of these crypto debit cards represents a major step toward bridging the gap between traditional finance and decentralized finance, making cryptocurrency more accessible for everyday use.

What to watch out in 2025

Ethereum’s Pectra Upgrade

The Ethereum Pectra upgrade brings a range of innovations designed to enhance network performance, improve the user experience, and strengthen staking capabilities. These advancements are key to driving greater adoption of Ethereum and reinforcing its role as a leading platform in the blockchain space. As we look to 2025, Ethereum is set to achieve significant technological and price milestones, further solidifying its dominance in the ecosystem.

Ethereum’s upcoming Pectra upgrade has been divided into two phases, Prague and Electra, to facilitate a more seamless implementation of critical enhancements to the consensus and execution layers. The Electra phase focuses on improving validator efficiency, strengthening network security, and introducing better systems for handling validator exits. 

Web3 Gaming

The global gaming industry has struggled over the past two years, facing rising marketing costs, fierce competition, and widespread layoffs. However, Web3 gaming offers a fresh approach by introducing new economic models that allow both studios and players to share in value creation. Through secondary markets for in-game assets, developers can earn ongoing royalties from NFT-based items, while players gain true ownership of their digital purchases.

This blend of gaming and blockchain reflects a broader trend toward community-driven engagement. Instead of spending massive budgets to attract players, studios can use token incentives and peer-to-peer marketplaces to build a more loyal and organic user base. While some traditional gaming executives remain skeptical of crypto integration, growing evidence suggests that Web3 features could help tackle the high user-acquisition costs that challenge many studios today.

Today, 80% of new blockchain games incorporate NFTs, allowing players to own and trade digital assets. This shift is transforming the gaming industry into a new kind of economic ecosystem, where players can not only engage in gameplay but also participate in the digital economy.

The blockchain gaming market is expected to grow significantly, reaching $65.7 billion by 2027. This growth is largely driven by the widespread adoption of play-to-earn (P2E) models and the increasing popularity of NFT-based games, which enable players to earn real-world value through their in-game activities.

The rise of AI

The rise of AI agents is set to be a defining trend for 2025. These autonomous entities can perform tasks without constant human oversight, ranging from managing on-chain transactions to taking on complex roles in gaming or decentralized social platforms. One of the key benefits of deploying AI agents on blockchain networks is the transparency and traceability of their actions, as each step is recorded immutably.

For these agents to reach their full potential, they need to operate independently from centralized control. Permissionless, decentralized blockchains provide this independence, allowing AI agents to interact seamlessly across different protocols and organizational boundaries without the constraints imposed by a single authority. This flexibility makes AI agents a powerful force in sectors like gaming and entertainment, where generative AI can dynamically create digital assets or narratives, while blockchain ensures secure ownership, proper attribution, and reliable payment systems.

Sustainable Blockchain Solution

Sustainable blockchain solutions are becoming a central focus within the crypto industry, aiming to minimize the environmental impact of blockchain networks by adopting energy-efficient technologies and green initiatives. As public awareness of the carbon footprint of cryptocurrencies increases, the industry is actively seeking alternatives to the highly energy-intensive Proof-of-Work (PoW) consensus mechanism. One of the most significant shifts is moving towards Proof-of-Stake (PoS) and other low-energy consensus mechanisms. This transition is essential for making blockchain networks more eco-friendly and less reliant on energy-heavy operations. In addition to adopting energy-efficient consensus models, several blockchains are also exploring carbon offset programs and energy-neutral projects, aiming to align their operations with global sustainability goals.

Ethereum’s successful transition to Proof-of-Stake (PoS) in 2022 serves as a landmark achievement in the blockchain industry’s sustainability efforts, reducing the network’s energy consumption by an impressive 99.95%. This shift has set a significant benchmark for other blockchain projects aiming to become more sustainable. Furthermore, the green blockchain market is projected to grow rapidly, with an expected 59% compound annual growth rate (CAGR), reaching $30 billion by 2030. This growth is driven by an increasing number of blockchain platforms aligning with ESG principles, indicating that sustainability will play a crucial role in the future of the blockchain and Web3 ecosystem.

Stablecoin Adoption 

Stablecoins have become one of the most impactful applications in the crypto space, providing fast, low-cost, and accessible payment solutions on a global scale. Pegged to fiat currencies like the U.S. dollar, stablecoins maintain a consistent value, making them a reliable medium for transactions and savings. Their stability has made them particularly attractive in regions facing high inflation or lacking robust banking infrastructure, where they offer a stable store of value and an alternative to volatile cryptocurrencies.

Advancements in blockchain technology, such as the development of Layer 2 solutions on Ethereum and the emergence of high-throughput blockchains, have made stablecoin transactions more efficient and affordable. This improved functionality has led to growing adoption across various industries, including cross-border payments, e-commerce, and decentralized finance (DeFi), showcasing their potential for broader, mass-market use.

In the second quarter of 2024, stablecoins processed an impressive $8.5 trillion in transaction volume across 1.1 billion transactions, surpassing Visa’s $3.9 trillion for the same period. This surge underscores their growing importance in the crypto ecosystem. Stablecoins now account for 32% of daily crypto usage, making them the second-largest category after DeFi, which holds 34%. This highlights their critical role in on-chain activity and overall engagement within the crypto space, cementing their status as a foundational component of the digital economy.

Conclusion 

The Web3 space in 2024 demonstrated remarkable resilience and an unwavering commitment to innovation. This year was marked by a continuous stream of new developments and a growing number of users eager to engage with these networks, driven by financial incentives.

The trends and advancements highlighted here are just a glimpse of how crypto is transforming fundamental aspects of daily life. As we move toward a future where cryptocurrency becomes seamlessly integrated into everyday activities, the progress achieved in 2024 will have a lasting influence. These breakthroughs lay a strong foundation for the next wave of Web3 expansion and the evolution of the digital economy.