Odaily Planet Daily News: According to a report by Grayscale Research, in the last quarter of 2024, the market value of cryptocurrencies increased from $1 trillion to over $3 trillion, surpassing the total value of the global inflation linked bond market. At one point, the market value of cryptocurrencies was even twice the total market value of the US high-yield bond market.
However, the report data shows that the market value of cryptocurrencies is still significantly smaller than the global hedge fund industry or Japan's stock market of about $4.5 trillion. As of the time of writing (December 31, 2024), the market value of cryptocurrencies is approximately $3.3 trillion. The significant increase in cryptocurrency market value in the fourth quarter is mainly attributed to Trump's election victory in November.
During the quarter, competition in the field of smart contract platforms was particularly fierce, with Ethereum and Solana becoming the dominant players. The so-called high-performance blockchain has also attracted significant attention in this category.
Investors are also paying attention to other L1 networks, including high-performance blockchains like Sui and TON integrated with Telegram, "explained the Grayscale Research report. Despite intensified competition, smart contract platforms face various design choices that affect the scalability, security, and decentralization of the network. These specific design choices can also lead to different block times, transaction throughput, and average transaction costs.
Meanwhile, the report states that there is a statistical relationship between the fee income and market value of smart contract platforms. In other words, the greater the ability of a network to generate revenue, the greater its ability to transfer value to the network through token destruction or staking rewards.
