Despite some difficulties, the cryptocurrency market ended 2024 on a strong note, reaching an all-time high (ATH) market cap of $3.91 trillion in December.

In a recent insight report published by Binance Research, the research arm of the cryptocurrency exchange, the market’s growth was largely influenced by Bitcoins stellar performance and regulatory optimism.

Bitcoin Becomes 7th Largest Global Asset

Following the bitcoin halving event in April 2024, the leading cryptocurrency has been on a roll, hitting ATH after ATH. With its latest peak of $108K, bitcoin’s market cap saw a year-to-date (YTD) growth of approximately 123.4%.

Its stellar performance in 2024 resulted in it being ranked the seventh largest global asset by market cap, surpassing Saudi Aramco, Silver, and Meta. Despite being a relatively newer asset class compared to the more established ones on the list, BTC stood out among the best performers in 2024, only behind Nvidia.

Per the report, bitcoin’s impressive growth was fueled by several factors, including positive global monetary policy shifts and the approval of spot BTC ETFs in January 2024. These financial vehicles reinforced bitcoin’s legitimacy as an asset class, unlocking fresh capital inflows from institutional investors.

In just the first year, US-based spot Bitcoin ETFs accumulated over $50 billion in assets under management (AUM).

Additionally, the recently concluded United States presidential election further fueled the rally. Donald Trumps victory spurred optimism among market participants as expectations of potential regulatory changes under the pro-crypto Trump administration heightened.

Interest in AI Agents Explode

The report also highlighted the growing interest in the emerging AI sector of the crypto industry. The AI agents are becoming a hot topic among market participants, attracting significant investments.

Per the report, the sector’s boom was kickstarted by the AI agent Truth Terminal and the GOAT token. Following the token’s success, the sector has continued to evolve as new projects launch.

With top agents’ tokens reaching high market valuations, Binance believes this sector could drive massive industry growth in 2025. The top AI agents’ token, VIRTUAL, currently has a market cap of $4.2 billion.