2024 Crypto OTC trading surged 106% YoY: Finery

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2024 saw substantial expansion in sectors such as Over-The-Counter (OTC) and stablecoin transactions within the cryptocurrency industry, leading Finery Markets experts to predict a bright outlook for 2025.

2024 saw a remarkable 106% increase in over-the-counter trading volume compared to the previous year, according to an email sent by Finery Markets to crypto.news on January 10. This surge coincided with all-time highs and a buoyant atmosphere in the digital asset market.

A global, non-holding company specializing in crypto infrastructure explained that the increase in Over-The-Counter (OTC) market activity was primarily due to a surge in stablecoin demand and an uptick in crypto-to-crypto transactions, predominantly observed during the second half of 2024 and Q4.

In terms of trading activity, Q4 surpassed all other quarters by a substantial margin. The only other quarter that experienced triple-digit growth was Q2, which saw an impressive 110% increase, primarily due to the successful launches of Bitcoin ETFs. Q1 and Q3 came in next with growth rates of 80% and 78%, respectively.

Finery Markets

Stablecoin transactions, which are digital assets tied to traditional currencies such as the US dollar, saw a surge of 147% year over year. In the fourth quarter alone, this increase was even more substantial at 191% year over year. This significant growth can be attributed to the positive sentiment following the elections.

As a crypto investor, I’ve noticed that Tether (USDT) continues to lead the pack in the staggering $210 billion stablecoin market. In fact, its market cap soared to an unprecedented high of $140 billion back in mid-December. On the other hand, Circle’s USD Coin (USDC) has also made a strong comeback, reaching a market cap of around $45 billion, edging closer to its previous peak of $56 billion before the bank run in early 2023.

Crypto outlook for 2025

In simple terms, Finery Markets shares optimism about the future in 2025, predicting a possible increase in institutional involvement with decentralized finance systems. This could happen if regulatory bodies offer clarification on guidelines within the sector.

Additionally, the company emphasized a growing opportunity for digital tokens representing real-world assets to become more popular, thereby enhancing global market fluidity and enabling continuous trading around the clock in conventional markets.

Businesses might likewise provide loans utilizing cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), inspired by the achievements of crypto-based exchange-traded funds. Such a trend towards Bitcoin (BTC) reserves may prompt nations and institutions to reconsider their earlier “no involvement” approaches.

On Wall Street today, Bitcoin ETFs are managing more than $100 billion worth of investors’ funds. Key U.S. decision-makers, such as President Donald Trump, have voiced support for establishing a national Bitcoin storage system.

As a researcher, I am optimistic that the increasing pro-crypto sentiment within U.S. politics and economy presents an opportunity for a revival of a more supportive environment for the digital assets industry. By 2025, this could pave the way for rapid mass adoption, primarily fueled by institutional demand from U.S.-based entities.

Finery Markets highlighted possible difficulties for smaller European exchanges, mentioning that they might struggle with liquidity due to their centralized nature. Moreover, the upcoming MiCA regulatory structure in Europe could prompt these trading platforms to transition towards broker-dealer systems and form new alliances to maintain compliance.

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2025-01-10 17:48