Community Update 2024: Reflecting on a Transformative Year

Dear Community,

As we close the chapter on 2024, we reflect on a year that has transformed the blockchain and crypto landscape in profound ways. The OAX foundation is pleased to have provided insights from sweeping macroeconomic shifts to groundbreaking industry innovations and vibrant local developments, this year has been nothing short of monumental. With Bitcoin breaking all-time-high and up nearly 120% year-to-date as of December, we take this opportunity to look back on the forces driving this momentum and highlight the industry progress we made together.

Macro Landscape: A Year of Milestones

This year’s macro environment brought pivotal developments that have set the stage and driving force for the next wave of crypto adoption and innovation.

Bitcoin’s New All-Time High and Spot ETF: Bitcoin surged past its all-time high, reaching $108,000, a milestone fueled by the long-anticipated approval of Bitcoin spot ETFs. This historic move signaled growing institutional confidence in digital assets, drawing mainstream investors deeper into the crypto space.

The institutional appetite for crypto continued to grow, with major players like MicroStrategy ramping up their holdings. The total market cap of crypto has surged to over $3.5 trillion, This influx of institutional capital spilled over into the altcoin market, reigniting interest in decentralized finance (DeFi) protocols and solidifying digital assets as a staple in financial portfolios.

Bitcoin halving: The April 19 Bitcoin halving was a much-anticipated event, but unlike previous cycles, it did not follow historical price trends. While prices remained steady or slightly trended downward, global regulatory clarity and institutional optimism provided positive signals for the market’s long-term trajectory.

Crypto-Friendly Leadership in the U.S.: The political landscape shifted in favor of crypto with the election of pro-crypto leaders in the U.S., bolstered by Gensler’s resignation and the appointment of figures like Elon Musk and Brian Armstrong to cabinet involvement. This political movement drove Bitcoin’s November rally, with a 40% gain largely attributed to Republican victories. Along with speculation around central banks adopting crypto mechanisms also gained traction, however it is worth noting the Federal Reserve Chair Powell dismissed these possibilities—for now.

Driving Innovation: The Foundation of Web3’s Future

Innovation remains the lifeblood of the crypto industry, and 2024 proved to be a year of robust advancements that have reshaped how we think about core pillars of space.

Solana’s Breakthrough Year: Solana emerged as the “Chain of the Year,” surpassing Ethereum in transaction volume and showcasing its robust infrastructure. Its vibrant creator economy, low fees, and high performance have attracted users and generated positive transaction income for the protocol. Solana’s ecosystem, particularly in memecoins activities from pump.fun, highlights how innovation in infrastructure drives mass adoption.

Exchanges are incentivised to build Layer 2 Chains: Layer 2 solutions like Base (Coinbase’s L2 chain) set the trend for global user capture, with exchanges like Kraken and OKX following suit. These solutions enable decentralized, scalable interactions without the friction of regulatory hurdles, such as KYC, boosting on-chain activity and unlocking new revenue streams for exchanges. While this trend fosters positive developments by boosting activities in the decentralized world, particularly on Ethereum.

AI driving usage on Blockchain: The convergence of AI and blockchain is gaining momentum, with AI agents simplifying complex trade analyses through user-friendly NLP-powered interfaces. These tools allow users to command bots to perform tedious investment tasks, though caution is advised as recommendations still require personal discretion. Projects like Virtual are taking this further by enabling autonomous AI agents to transact on-chain, marking a major step forward in merging these transformative technologies and unlocking the potential of smart, decentralized systems for exponential interaction and growth.

Community Events: Hong Kong at the Forefront

Locally, the OAX community played a pivotal role in driving crypto adoption and innovation in Hong Kong, echoing the broader global momentum. From Blocktober to Fintech Week, the city continues positioning as a global crypto hub, supported by both community-driven initiatives and government backing.

Stablecoin Regulatory Framework: Following the stablecoin sandbox earlier this year, Hong Kong advanced its stablecoin regulations, with a new bill requiring issuers to obtain licenses from the Hong Kong Monetary Authority (HKMA). This framework, which includes stringent compliance measures and reserve requirements, aligns with global standards and positions Hong Kong ahead of regions like the U.S. as a leader in stablecoin oversight.

Accelerated Exchange Licensing: Hong Kong granted licenses to four new crypto exchanges, reinforcing its commitment to consumer protection while fostering innovation. This initiative reflects the city’s ambition to create a safe yet dynamic environment for cryptocurrency trading. The licensed exchanges must adhere to strict compliance standards, including security measures and customer protection, reflecting Hong Kong’s commitment to creating a safe and regulated environment for cryptocurrency trading.

OAX Foundation Ecosystem Highlights

Within our ecosystem, we are proud to support projects that make Web3 more accessible and practical for traditional users. One standout is Notifs, which leverages AI to deliver real-time news and market updates, empowering users with timely and actionable insights. Selected from over 1,000 applications for Cyberport’s incubation program, Notifs is set to connect partnerships with institutional players, further expanding its reach and impact. As we continue to explore collaborations, our focus remains on building the tools and infrastructure necessary for the next wave of Web3 adoption.

Closing: Macro and Innovation Must Go Hand in Hand

This year has underscored the importance of aligning macro developments with innovation to drive the industry forward. Regulatory clarity, institutional adoption, and technological breakthroughs are converging to create a robust foundation for the future of blockchain and crypto. The OAX foundation is dedicated to bringing you research and insights of both macro and technological advancements, while seeking for collaboration to drive innovation of the space forward.

As we prepare for 2024, we’re thrilled to announce the launch of our 2025 Trends Report this January, which will offer insights into the explosive growth and emerging trends ahead. Stay tuned as we continue this journey together.

Thank you for being part of this transformative year. Here’s to another chapter of progress, innovation, and community success!

With gratitude,
Team OAX

Disclaimer: The above is an opinion piece written by an authorized author, but in no way represents the official standpoint of OAX Foundation Limited, nor should it be meant to serve as investment advice.