Bitcoin’s network settled over $19 trillion worth of transactions in 2024. This is more than double the $8.7 billion in 2023.
Pierre Rochard is vice president of Riot Platforms’ research. He says that the surge represents a major reversal after two years of falling transaction volumes.
Bitcoin’s volume of transactions peaked in 2021 at $47 trillion, but then plummeted dramatically over the following years.
“The Bitcoin network completed more than $19 trillion in BTC transactions by 2024, proving Bitcoin as both a medium of trade and a store value,” Rochard stated.
Spot Bitcoin ETFs Boost Bitcoin Performance
Bitcoin’s performance was boosted by several key milestones in 2024, including approval of an exchange-traded Bitcoin fund (ETF) based in the United States, the April 2024 halves event, and the record-breaking price at approximately $108,000.
Security on the network reached new heights. Bitcoin’s hashrate, a measure for the computing power that secures the network, reached an all-time record of 1,000 exahashes/second (EH/s) on January 3, 2024.
The increase in EH/s is a testament to the increasing commitment of miner’s worldwide.
It is difficult to accurately determine hashrate dominance despite the geographical concentration of certain mining pools.
Bitcoin mining is decentralized and pseudonymous, so many miners are anonymous or use virtual private networks to hide their real locations.
Bitcoin’s growing transaction volume, along with its increasing hashrate, and its global adoption, confirms its dual role as a store and medium of exchange.
US dominates Bitcoin mining
By the end of 2024 the United States will have solidified its leadership in Bitcoin mining. The United States is responsible for more than 40% the global hashrate, which is the total computing power that secures the Bitcoin network.
The U.S. mining pools Foundry USA & MARA Pool, which collectively mined more than 38.5% all Bitcoin blocks, played a major role.
Foundry USA’s hashrate increased from 157 exahashes/second (EH/s), at the start of the year, to approximately 280EH/s in December.
CryptoQuant’s founder Ki Young Ju said that despite these advances, China-based pools still remain influential. They will control 55% of global hashrate by September 2024.
Despite a ban on mining cryptocurrency in China until 2021, miners continue to dominate the market by circumventing restrictions using peer-to-peer applications and virtual private networks.
Bitmain, the Bitcoin mining hardware maker, announced last month that it would expand its production to the United States. The company cited a strategic objective of improving the supply chain’s efficiency.
The move was made amid an escalating tension between China and the US over trade, which highlights the need for businesses to adapt to changing geopolitical conditions.
According to reports, Jack Dorsey’s Block also announced plans for a major investment in Bitcoin mining and a self-custody Bitcoin Wallet.
The company announced at the time that it would reallocate its resources from the canceled “Web5” Project, TBD and reduce investments in Tidal’s music streaming service to support this decision.
