The following is a guest editorial courtesy of Niki Nikolaou, Business Director at Contentworks Agency.
Bitcoin had a dream run in 2024, rising over 102% to reach an all-time high of $89,612.69 on November 12. The recent rally was driven by the outcome of the US presidential election, with speculations that Trump would bring in pro-crypto regulations. BTC’s surge has, however, been overshadowed by Solana (SOL), which was up over 111% YTD as of November 12, while its market cap crossed the $100 billion mark on November 10. In fact, the total crypto market cap touched a record high of $3.12 trillion on November 11, almost surpassing France’s GDP!
The early stages of the bitcoin surge coincided with a significant rise in interest among retail investors in futures contracts, like cryptocurrency CFDs, that allow them to speculate on future price moves without an expiration date. According to a survey of 77 large crypto investors by MV Global, a Web 3.0 investing firm, investors expect the bull run to persist in 2025, peaking in the latter half of the year. Retail investors account for 15% of bitcoin in circulation, equating to about 3 million BTC.
Here’s a deep dive into how digital currencies and their underlying blockchain technology have fared in 2024. Knowing the road ahead can guide your cryptocurrency marketing efforts.
Crypto Interest Hits an All-Time High
The numbers tell the story:
- 220 million crypto addresses interacted with a blockchain at least once in September 2024, a 3x rise from the end-2023 level.
- Solana primarily accounted for the increased activity with around 100 million active addresses.
- Monthly mobile crypto wallet users hit a record high of 29 million in June 2024.
- Stablecoins accounted for almost a third of all daily crypto use at 32%, coming in a close second to DeFi, which stood at 34%.
While the US had the largest share of mobile crypto wallet users, Nigeria, India and Argentina follow closely.
Cryptocurrencies were a major focus during the US election campaigns for both presidential candidates. This also reflects the rise in interest in this asset class. The listing of Bitcoin and Ethereum ETFs this year has also piqued investor interest. With only about 5%-10% of crypto owners being active users, brokers and exchanges have a huge opportunity to engage passive holders and increase activity on their trading platforms. The key to achieving this is getting cryptocurrency marketing right.
Regulatory Changes
The EU and UK have been very proactive in engaging the public on crypto regulation and policy. In fact, European agencies have reached out to the public for inputs much more than the US SEC. The European parliament also passed the Markets in Crypto Act (MiCA), the first comprehensive crypto-related regulation, set to come into full effect by December 30, 2024. The new law is expected to create a pro-crypto environment across the EU, attracting the attention of investors.
Meanwhile, the United States Congress has approved the Financial Innovation and Technology for the 21st Century (FIT21) Act into law with “overwhelming” bipartisan support. The US Financial Services Committee called this “a watershed moment for the US digital asset ecosystem.” Like MiCA, FIT21 provides greater regulatory clarity while ensuring consumer protection and promoting innovation.
Cryptocurrencies are fully legal in 12 G20 countries, representing more than 57% of the global GDP, while regulating the asset class is under consideration across all G20 nations.
The Rise of Stablecoins
Stablecoins have emerged as one of the most popular crypto assets and the biggest topic in policy discussions. A major tailwind for this digital asset is the backing of a fiat currency. For instance, in the US, stablecoins are seen as a way to fortify the greenback’s position overseas amid fears of the US dollar slipping from favour as the world’s reserve currency. As of 2024, 99% of stablecoins are pegged to the USD, eclipsing the next largest fiat currency in which stablecoins are denominated, the euro, at 0.20%.
Increasing Blockchain Capacity
Improvements in blockchain infrastructure have not only increased capacity but also significantly reduced transaction costs. In fact, the underlying infrastructural advancements are one of the key reasons for the growing popularity of stablecoins. Blockchains can process 50x more transactions per second in 2024 compared to 2020, following the launch of Ethereum L2 networks (Layer 2 solutions, such as bypasses and extensions, built on top of the primary Ethereum blockchain) and similar high throughput blockchains.
Another key development is the emergence of Zero Knowledge technology. Also known as zero-knowledge proofs (ZKPs), this is a cryptographic method that allows multiple parties to verify a statement without revealing any information beyond the statement itself. ZKPs have opened new routes to providing cheap, verifiable blockchain computations for developers.
In addition, infrastructure with higher scalability unlocks the path to new on-chain applications. As blockchain infrastructure advances, many new crypto use cases and consumer apps will become possible. This will fuel investor interest, who will look for the best CFD broker or exchange to start or continue their cryptocurrency trading journey. Therefore, the time to build your marketing strategy is now.
Marketing Your Crypto Offering
Cryptocurrency marketing needs more than just promoting your services. You must focus on building trust and ensuring transparency. Plus, given that digital currencies and blockchain are still relatively new concepts, you will also need to simplify and explain complex concepts by transforming them into relatable stories. But all this is easier said than done. There’s a whole battlefield of regulations to navigate, while also discovering the best channels on which to reach your target audience.
Unfortunately, widespread scams associated with cryptos led top channels, including Google and Facebook, to impose stringent restrictions on paid advertising for digital assets. However, PPC advertising restarted in 2024 for cryptocurrency marketing on Google and Facebook, albeit with restrictions. A multi-channel approach proves the most effective in connecting with potential traders and investors. Social media, crypto forums and news sites, and crypto communities can be invaluable in demonstrating your transparency, accountability, focus on consumer protection and, of course, your offerings.
Established in 2017, Contentworks Agency is the preferred marketing partner for cryptocurrency brokers and exchanges. Speak to us about cryptocurrency marketing.
