According to a recent crypto market report from Coinbase and Glassnode, the rapid adoption of stablecoins and further development of Ethereum layer-2 scaling solutions are driving market maturation.

Billions of dollars have continued flowing into the cryptocurrency market this year through spot crypto ETFs and increasing blockchain transaction volumes. Significant trading activity, robust on-chain metrics, and thriving spot ETFs indicate a deepening, increasingly liquid marketplace with widening access.

The crypto market has shown remarkable growth and maturity in 2024. Spot ETFs have massively boosted liquidity and accessibility, while blockchain activity has surged to unprecedented levels. This has led to reduced volatility, with Bitcoin’s 3-month price volatility falling below 60% compared to nearly 130% in 2021.

Stablecoins and Bitcoin now comprise a larger share of total crypto market cap compared to Q2, suggesting a flight to perceived safety amidst changing market dynamics. The launch of spot Bitcoin ETFs in the US in January 2024 was a key catalyst, attracting around $5 billion in Q3 alone.

Stablecoin market cap hit an all-time high of about $160 billion in Q3, reflecting their growing adoption across the crypto economy. Ripple’s recent announcement about its RLUSD stablecoin has further fueled market speculation.

While Ether ETFs saw outflows, particularly from the converted Grayscale Ethereum Trust, the broader Ethereum ecosystem is flourishing. Layer-2 scaling solutions are driving strong growth by enhancing network efficiency and functionality. Daily active addresses and transaction volumes have grown fivefold since early 2023.

Ethereum’s share of total fee generation among fee-earning layer-1 blockchains has rebounded from 9% in late August to 40% by end-September. This recovery in network demand underscores Ethereum’s continued relevance in the crypto landscape despite evolving market dynamics.