- Bitcoin’s worth has risen over 400% between 2020 and 2024
- Solana has elevated in worth by almost 4,500% from $1.49 to round $166 in 4 years
- This trajectory of positivity will proceed past the 2024 US elections, in accordance to Matt Hougan
Bitwise’s CIO has stated whereas Washington can alter the trajectory of the crypto market by dashing issues up or slowing them down, it will probably’t cease it.
In his newest client memo, Matt Hougan wrote about crypto in an election 12 months, claiming that crypto has already received, no matter who turns into the subsequent President of the United States.
Comparing the state of the crypto market from November 2020 to November 2024, Hougan questioned whether or not issues are higher or worse because the final time Americans went to the polls.
Despite a number of lawsuits from the US Securities and Exchange Commission (SEC) – notably towards Binance, Coinbase, Cumberland DRW, Kraken, and Ripple – the crypto trade has made vital progress.
A four-year distinction
Looking between the 2 US elections, Hougan factors out that Bitcoin was buying and selling at $13,677 in November 2020. Fast-forward to November 2024 and Bitcoin is valued at round $69,492, indicating a 408% change.
Ethereum has additionally seen a constructive enhance from its humble $388 in 2020 to its now $2,492 within the runup to the 2024 US election. However, it’s Solana that has seen a main enhance in value rising almost 11,000% from $1.49 in 2020 to round $166 in 2024.
Turning to belongings underneath administration (AUM), Hougan exhibits that stablecoin AUM rose from $3.87 billion in November 2020 to $177.83 billion in November 2024, representing a close to 4,500% change.
Decentralized finance (DeFi) whole worth locked (TVL) additionally skilled a wholesome enhance, leaping from $9.57 billion in 2020 to $139.3 billion in 2024.
“We focus so much in crypto on the moment-by-moment movement of prices that we often lose sight of the long-term trends,” Hougan wrote. “The presidential election provides a nice opportunity to step back and see how far we’ve come.”
What subsequent?
So a lot has already occurred within the crypto market over 4 years, however will that proceed because the market goes past the 2024 US election?
In Hougan’s view, the reply is sure. Regardless of who turns into the subsequent POTUS, Hougan stated – amongst different issues – that spot crypto exchange-traded funds (ETFs) inflows will proceed, stablecoins will proceed to develop, Wall Street will proceed to embrace tokenization and real-world belongings, blockchains will get sooner and cheaper, and real-world functions reminiscent of Polymarket will achieve mainstream adoption.
“What happens in Tuesday’s election matters, particularly in the short term,” stated Hougan. “But as I see it, over the long term Tuesday will prove to be something between a speed bump and a wind gust. Neither is going to stop this train.”
