The cryptocurrency market has shown significant growth and resilience over the past four years, regardless of political uncertainty surrounding the upcoming 2024 presidential election in the United States.
According to Matt Hougan, Chief Investment Officer at Bitwise, the crypto market has already achieved a level of success that transcends electoral politics and will continue to thrive regardless of who occupies the White House. Despite potential short-term fluctuations, the momentum in the crypto space is expected to persist.
Since the last election in November 2020, Bitcoin has experienced a remarkable increase of over 400%, surging from $13,677 to approximately $69,492. Ethereum has also seen substantial gains, rising from $388 to around $2,492. The standout performer has been Solana, which has skyrocketed nearly 11,000% from $1.49 to about $166. These numbers highlight the increasing acceptance and integration of cryptocurrencies into mainstream financial systems.
Despite facing regulatory challenges and lawsuits from the U.S. Securities and Exchange Commission (SEC) against major players like Binance and Coinbase, the crypto industry has made notable strides. The total assets under management (AUM) for stablecoins have surged from $3.87 billion in November 2020 to an astonishing $177.83 billion by November 2024, reflecting a near 4,500% increase. Additionally, the total value locked (TVL) in decentralized finance (DeFi) has jumped from $9.57 billion to $139.3 billion, indicating a robust expansion of DeFi applications and platforms.
Institutional interest in cryptocurrencies is also increasing, with firms like VanEck expanding investment options for European and U.S. investors. VanEck has launched the PYTH exchange-traded note (ETN) on Euronext Amsterdam and Paris, which tracks the Pyth Network's native token. This ETN aims to provide investors with exposure to innovative blockchain assets and solidify the role of oracles in the DeFi ecosystem. The Pyth Network connects smart contracts to real-world data sources, enabling more sophisticated financial products and services.
VanEck has also introduced spot crypto ETFs focused on Bitcoin and Ethereum in the U.S., with plans for additional approvals covering altcoins such as Solana and XRP. This commitment to expanding investor access to digital assets reflects the broader trend of institutional adoption, which is expected to continue as traditional financial institutions embrace blockchain technology and tokenization of real-world assets.
Looking ahead, the crypto market is poised for further growth beyond the 2024 U.S. elections. Ongoing developments in the regulatory landscape and increasing institutional participation are expected to drive momentum. The anticipated inflows into spot crypto ETFs, coupled with the expansion of stablecoins and mainstream adoption of blockchain applications, suggest a bright future for the industry. While short-term volatility may be introduced by the political landscape, the underlying fundamentals of the crypto market remain strong. As the industry matures, it is likely to attract more diverse investment strategies and innovative financial products, further integrating cryptocurrencies into the global financial system.