The Biggest Crypto Developments of 2024, and What to Expect in 2025

2024 was a banner year for blockchain technology, with groundbreaking developments that set the stage for the next era of crypto. From Ethereum’s Cancun-Deneb (Dencun) upgrade to Solana’s institutional adoption, here's a look back at the key milestones, emerging trends, and predictions for 2025.

A Look Back: Top Crypto Tech Milestones of 2024

Ethereum’s Cancun-Deneb Upgrade: 2024 marked Ethereum's most significant network upgrade yet. Ethereum activated the Cancun-Deneb (Dencun) upgrade, a landmark improvement designed to enhance scalability and reduce data fees, marking a pivotal step in the network's evolution. Duncun introduced proto-danksharding, a mechanism aimed at lowering costs for Layer-2 rollups by simplifying data availability and improving transaction throughput. The changes, though immensely debated, aimed to benefit developers and pave the way for further innovations in Ethereum’s roadmap, reinforcing its position as the leading smart contract platform.

Solana Locks in Value: Solana's DeFi TVL hit $9 billion in total value locked (TVL) for the first time in three years, with its DeFi ecosystem experiencing even more growth. This achievement reflects increased user engagement and the expansion of decentralized applications on the platform. This growth was significantly helped by institutional adoption and major integrations. Financial giants like Franklin Templeton and Société Générale leveraged Solana for tokenized asset projects. Solana also expanded its reach with Robinhood adding SOL to its trading platform and Cboe Global Markets filing for Solana-linked ETFs, signaling increased confidence in its infrastructure.

Quantum Computing’s Warning Bell: Google's advancements in quantum computing, particularly with its revolutionary quantum chip, raised alarms within the crypto community about the potential threats to blockchain security. The chip’s ability to solve problems far beyond the reach of classical computers reignited debates around Bitcoin’s reliance on traditional encryption methods and the broader implications for the crypto ecosystem. Experts emphasized the urgency of transitioning to quantum-resistant encryption to safeguard cryptocurrencies against future vulnerabilities. While current quantum computers are not yet capable of compromising blockchain networks, Google’s progress underscored the need for proactive measures to ensure the long-term security and resilience of digital assets.

Layer-2 Adoption Soars: Layer-2 adoption surged as projects like Arbitrum, Optimism, and Base played pivotal roles in addressing Ethereum's scalability challenges. Arbitrum continued to dominate the Layer-2 ecosystem, crossing 1 billion in transactions, driven by its strong developer support and DeFi integrations. Optimism continued to expand its influence with its OP Stack technology, which enable modular Layer-2 solutions and foster ecosystem-wide collaboration through its integration into Optimism’s Superchain. Base, a Layer-2 incubated by Coinbase, gained significant traction as it leveraged Coinbase's extensive user base and on-ramps, with Franklin Templeton becoming the first asset manager to launch a tokenized treasury fund on the network.

DeFi Leaders Innovate: Aave became the focus of a new fund launched by Grayscale Investments in October, providing institutional and accredited investors with exposure to its governance token (AAVE) through a traditional investment vehicle; Uniswap Labs announced Unichain, a decentralized Layer-2 blockchain built with Optimism's OP Stack, designed to enhance transaction speed, reduce costs, and improve cross-chain interoperability, with plans for a 2025 mainnet launch; and MakerDAO rebranded to Sky as part of its Endgame Plan, introducing new governance (SKY) and stablecoins (USDS), autonomous "Sky Stars," deflationary tokenomics, and a roadmap for transitioning fully from MKR to SKY tokens.

Emerging Trends for 2025

Solana’s Institutional Push: 2024 saw a major shift in Solana's strategy, with a focus on institutional adoption and ecosystem growth. This strategy paid off as several financial giants, including Franklin Templeton and Société Générale, integrated Solana into their tokenized asset projects. Additionally, Cboe Global Markets filed for Solana-linked exchange-traded funds (ETFs), further bolstering confidence in Solana's infrastructure and paving the way for broader institutional engagement in the DeFi space.

Quantum Computing’s Impact on Crypto: Google's groundbreaking advances in quantum computing raised a critical concern for the blockchain industry: the potential vulnerability of current encryption methods. As quantum technology continues to evolve, it will be crucial for the crypto community to adopt quantum-resistant encryption to safeguard digital assets against future threats. This development will also drive the integration of blockchain and quantum computing, opening up new possibilities for secure and efficient applications.

Layer-2 Battle Heats Up: Layer-2 solutions emerged as a key narrative in 2024, with Arbitrum, Optimism, and Base leading the charge in addressing Ethereum's scalability challenges. Arbitrum dominated the scene with over 1 billion transactions, fueled by strong developer support and DeFi integrations. Optimism expanded its influence with OP Stack, enabling