2.1 Background
I. OVERVIEW OF THE GLOBAL CRYPTO IN 2024
Historic Growth
Global cryptocurrency adoption reached an estimated 562 million people by 2024, representing approximately 6.8% of the world’s population, according to data from multiple industry sources. The figure marks a 33% increase compared to 2023, highlighting continued growth in the sector despite regulatory and market uncertainties.
The rise in crypto ownership is attributed to the broader integration of blockchain technology and decentralized networks across financial systems. As of 2025, these technologies are increasingly used for peer-to-peer transactions, digital payments, and value exchange without reliance on traditional intermediaries.
DeFi Bridges Financial Gaps for 31% of Underbanked Population
Over 31% of the global population is underbanked, yet most own smartphones. Crypto payments and decentralized finance (DeFi) offerings provide access to financial services to millions, bridging gaps in traditional banking.
Alongside Bitcoin and Ether, an entire ecosystem of DeFi products (staking, lending, yield farming) has materialized, offering new sources of yields and engaging a broader audience looking beyond just price speculation.
Big Highlights in 2024
Bitcoin Halving
"April 19, 2024" marked a key event in Bitcoin’s monetary policy as the network completed its fourth halving at block height 840,000, reducing the mining reward from 6.25 BTC to 3.125 BTC.
The Halving, which occurs approximately every four years, is designed to slow the issuance of new bitcoins and limit inflation through a pre-programmed reduction in block rewards.
BTC Hits $100K Post-Halving
Following the halving, Bitcoin’s market price exceeded $100,000 for the first time, reflecting increased investor interest and tightening supply conditions.
Data from May 2024 shows that approximately 19.7 million bitcoins were already in circulation, leaving fewer than 1.3 million BTC remaining to be mined before the 21 million cap is reached.
BTC Launch
Genesis block
Jan 3, 2009
50
N/A
Halving 1
210,000
Nov 28, 2012
25
$12.35
Halving 2
420,000
Jul 9, 2016
12.5
$650.53
Halving 3
630,000
May 11, 2020
6.25
$8,821.42
Halving 4
840,000
April 19, 2024
3.125
$63,652.80
Halving 5
1,050,000
~2028
1.5625
?
Halving 6
1,260,000
~2032
0.78125
?
Halving 7
1,470,000
~2036
0.390625
?
Halving 8
1,680,000
~2040
0.1953125
?
Institutional & Government Engagement
Spot BTC and Ether ETFs:
Major financial markets in the US, Australia, and Hong Kong launched spot crypto exchange-traded funds, drawing both retail and institutional investors seeking regulated, easy access to digital assets.
These applications were finally approved at the start of January 2024, and the first trades with these instruments occurred on January 11. Over the course of the year, net inflows into Bitcoin through various ETF funds amounted to nearly $36 billion, accounting for approximately 2% of Bitcoin’s current market capitalization.
Pro-crypto US Administration:
President-elect Donald Trump and his cabinet signaled a supportive stance toward blockchain technology, fueling speculation about Bitcoin’s potential classification as a national reserve asset.
On March 3, 2025, President Trump announced that the reserve would include Solana (SOL), Cardano (ADA), Ripple (XRP), Ethereum (ETH), and Bitcoin (BTC) aiming to make the US the "Crypto Capital of the World" and support industry growth.
In parallel, global governments built up or clarified their crypto holdings, giving further confidence to the marketplace.
Key Regulatory Shifts
European Union (EU)
Under the new MiCA framework, all crypto-asset service providers in the EU’s 27 member states must be authorized. Existing operators have until December 30, 2025 to secure licenses.
Companies offering large-scale stablecoins must hold suitable reserve assets and follow strict capital requirements to protect end users, while issuers of other crypto-assets must produce a “white paper” and ongoing disclosures.
Singapore
In 2023, Singapore secured USD 627 million in funding for crypto businesses across 88 deals.
The Monetary Authority of Singapore (MAS) has authorized 19 digital payment token (DPT) service providers as of January 2024.
Under the Payment Services Act (PS Act), crypto firms must obtain one of three license types. For example, a Standard Payment Institution (SPI) license requires SGD 100,000 (~USD 74,000) in base capital, while a Major Payment Institution (MPI) license requires SGD 250,000 (~USD 184,000).
Consumer protection measures introduced in 2024 include minimum capital thresholds, enhanced AML/CFT checks, transaction monitoring, and strict advertising rules.
United States (US)
Stablecoin proposals and crypto-focused exchange-traded funds (ETFs) have moved forward, reflecting growing institutional acceptance.
High-profile enforcement actions like Ripple’s USD 125 million penalty have spurred industry compliance, while the SEC and other agencies shift toward more formal rulemaking rather than case-by-case enforcement.
Federal discussions around “modernizing” payments hint at potential integration of private or semi-private stablecoins into government processes.
3.1.2 Global Market Metrics & Adoption Trends
Regional Breakdown
Asia: Continues to lead with ~327 million users, reflecting a 21.8% jump in adoption. Markets such as China, Hong Kong, Singapore, and Southeast Asian nations collectively drive transactions, fueling both DeFi usage and cross-border remittances.
North America: Ownership rocketed by 38.6% to reach 72 million users, boosted by spot ETFs in the US and Canada. Regulatory clarity from agencies like the SEC also contributed to heightened institutional interest.
South America: A 116.5% spike in ownership underscores how crypto fills a gap where inflation is high and access to stable finances is limited. Countries like Brazil and Argentina see crypto as a hedge against currency volatility.
Europe, Africa, Oceania: All posted robust, though more moderate, growth. Europe gained momentum following the EU’s MiCA regulatory alignment, while Africa’s rise remains steady despite economic barriers. Oceania’s crypto user base more than doubled amid new ETFs and rising remittance uses.
Changing Demographics
Gender Split: Males account for 61% of crypto owners, females 39%. Though still male-dominated, the gap is narrowing, especially among younger demographics.
Age Profile: The 25–34 bracket is the largest group of crypto owners, at 34%, but interest grows across all ages. Rising knowledge, user-friendly interfaces, and acceptance of digital transactions are encouraging a broader audience.
3.1.3 Emergence of AI and Blockchain Synergy
AI-Enhanced Blockchains
2024 saw new or upgraded blockchain protocols incorporate artificial intelligence to enhance node operations, parallelize transaction validation, and manage large-scale data with advanced AI algorithms.
Some platforms introduced AI-powered code audits for smart contracts and integrated machine learning to streamline consensus or resource allocation.
Meanwhile, next-generation blockchains (like 0G Labs) explored building specialized AI-optimized execution layers, a sign that the synergy between AI and decentralized networks is on the rise.
Use Case Intersection
AI Oracles: Advanced oracles can supply real-time, verified off-chain data to on-chain AI modules, fueling better predictive analytics for DeFi markets.
Trustless Verifications: Combining zero-knowledge proofs and advanced AI can bolster privacy without sacrificing compliance, enabling data-mining on encrypted datasets.
Quantum Resistance: With quantum computing still in its infancy, 2024 research and partial deployments focused on post-quantum cryptographic schemes. AI may accelerate the search for quantum-safe protocols, aiming to future-proof blockchains from potential vulnerabilities.
3.1.4 Crypto as a Payment Method: Broader Payment Ecosystem
A. Growing Trend of Accepting Crypto Payments
Retail & E-commerce
Major Brand Adoption in 2024:
Ferrari and Grab started accepting cryptocurrency payments in Q3 2024, joining a growing list of retailers (e.g., Newegg, Farfetch) that integrated crypto checkout.
No Chargebacks & Lower Fees:
According to a 2024 survey, over 55% of merchants who accept crypto reported a 30–40% reduction in net processing fees compared to credit cards. Crypto’s finality eliminates chargeback fraud, saving businesses additional costs.
Crypto Payment Gateways
Instant Fiat Settlement:
Solutions like Triple-A helped thousands of merchants worldwide accept crypto, with real-time conversions to local currencies.
By December 2024, total processed volume via such payment gateways surpassed US$15 billion, a 2x increase from the previous year.
Mitigating Price Swings:
Data from gateway providers suggests that up to 80% of customers opt for auto-conversion, receiving local fiat instantly, thus shielding merchants from crypto price fluctuations.
B. Use Cases & Consumer Adoption
Cross-border Remittances
Faster, Cheaper Transactions:
World Bank data show the average global remittance fee is 6.2%, whereas crypto-based remittances can reduce costs to 1–3%, saving billions in transfer fees annually. In Southeast Asia, monthly cross-border crypto remittances soared from US$650 million in early 2023 to US$1.2 billion by the end of 2024.
DeFi-based Microtransactions:
More than 300 DeFi platforms in 2024 introduced low-fee remittance solutions, enabling cross-border payments under US$5 to remain economically viable.
Daily Retail & Online Commerce
Survey Data on Interest:
A 2024 poll spanning seven countries (including the US, Brazil, and the UAE) found 65% of participants want the option to pay with digital currencies, and 80% specifically would use crypto for everyday purchases like groceries or personal care items.
Loyalty and Rewards:
Over 20% of crypto-friendly retailers have tested NFT-based membership programs or tokenized discount systems. Early results show an 18% boost in customer retention for merchants offering token-based loyalty perks.
C. Ongoing Challenges
User Experience
Wallet Complexity:
About 52% of non-crypto users cite complicated wallet setups and fear of losing private keys as deterrents. There's a demand for more user-friendly "custody-lite" solutions with robust backup and recovery.
Broader Onboarding:
Payment gateways and popular e-commerce platforms are rolling out integrated “One-Click Crypto Pay.” However, in 2024, only 12% of merchants said the setup process was “very easy,” indicating room for improvement in user experience and merchant tooling.
Regulatory & Tax Implications
Multijurisdictional Concerns:
Crypto payments cross borders seamlessly, but national rules vary. Over 60% of businesses that accept crypto stated difficulties with VAT/GST on crypto transactions in Europe or Asia due to inconsistent guidelines.
Stablecoin and E-money Licenses:
For bridging fiat and crypto, large payment providers often need stablecoin licenses. By late 2024, around 25 such licenses had been issued globally, primarily in regions like the EU and Singapore, streamlining compliance but raising operational hurdles for smaller startups.
The blockchain and cryptocurrency industries are evolving rapidly, with sectors such as decentralized finance (DeFi), non-fungible tokens (NFTs), and Web3 applications driving adoption. DeFi has transformed traditional financial services by enabling peer-to-peer lending, decentralized exchanges, and yield farming. Meanwhile, NFTs have introduced new ways to own, trade, and monetize digital assets. Web3 applications are reshaping the internet by decentralizing data and giving users greater control over their digital identities.
Despite this growth, traditional blockchain networks face fundamental inefficiencies that slow down mainstream adoption. Many existing platforms suffer from scalability limitations, high costs, security risks, and centralization concerns. As a result, there is a growing demand for next-generation blockchain solutions that address these issues while maintaining decentralization and efficiency.
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