2024 was a wild ride for the crypto sector—some wins, some fails, and plenty of drama. We saw more rules for exchanges, smarter blockchains powered by AI, and, unfortunately, a surge in hacks. Governments got busy testing their own digital currencies, while the approval of crypto ETFs sent markets soaring. 

But everything did not click—over regulation frustrated exchanges, and security issues left wallets empty. So, what trends crushed it, and which ones flopped? We’ll break down the biggest crypto trends of the year and see what they mean for you, whether you’re a seasoned trader or just getting started.

1. More Regulation for Crypto and Exchanges

Crypto regulators in the UAE. Source: Kyc Hub

In 2024, governments tightened their grip on crypto, especially in the UAE and the USA, shaking up how crypto exchanges operate. The UAE rolled out a new regulatory framework with clear licensing, monitoring, and compliance rules, managed by the Virtual Assets Regulatory Authority (VARA) in Dubai and the Securities and Commodities Authority (SCA) elsewhere. They even created a tax guide to clarify crypto’s tax treatment, making it easier for businesses to operate while attracting global fintech players. On top of that, Dubai introduced the Digital Assets Law to ensure smoother crypto trading.

Meanwhile, in the U.S., the SEC took an aggressive stance. They sued big names like Coinbase and Binance for failing to follow securities laws, accusing them of mishandling funds. Binance even faced a $4 billion penalty. SEC Chair Gary Gensler called the market “rife with fraud and manipulation,” emphasizing the need for tighter oversight.

On the upside, these rules brought safer trading environments, especially for newbies and cautious traders. However, the downside is that over-regulation has pushed some companies out, with firms like Gemini eyeing the UAE for friendlier policies. While these regulations aim to protect, they also highlight the ongoing tug-of-war between innovation and control in the crypto sector.

2. AI Supercharges Blockchain Tech

Some of the top AI tokens in 2024. Source: CoinDCX

In 2024, blockchain and AI teamed up in a big way, making crypto smarter, faster, and more secure. The buzz around AI tokens exploded, with their market value jumping from $2.7 billion in early 2023 to about $44.9 billion by Q1 2024. These tokens power platforms like Fetch.ai, SingularityNET, and Ocean Protocol, which merged to create ASI (Artificial Superintelligence). They aim to get a decentralized AI that big tech companies do not control.

Thanks to AI, blockchain now handles faster transactions, smarter contracts, and even catches fraud before it happens. It gives the tech a brain to make better decisions. For example, platforms use AI to speed up crypto payments and improve user security. This combo makes trading smoother, even on busy platforms like the best crypto exchange in UAE.

But not everything is perfect. AI’s complexity leaves many users scratching their heads. Trust is a big deal in crypto, and if people don’t understand the tech, they’re less likely to dive in.

Despite the challenges, the AI-blockchain duo is here to stay, reshaping crypto’s future with endless possibilities. If you’re investing in crypto, now might be the time to explore the exciting AI-powered tokens sub-sector.

3. Rise in Crypto Hacks

Theft from crypto hacks in the first half of 2024 vs. 2022 and 2023. Source: TRM Labs

2024 was a rough year for crypto security. Hacks soared, with $2.114 billion stolen by September—a 72% jump compared to 2023. Centralized platforms (CeFi) were the hardest hit, facing a shocking 1,000% rise in attacks. Decentralized platforms (DeFi), on the other hand, saw a slight decline.

Big names weren’t spared. Radiant Capital lost $58 million in a flash loan attack, and MetaWin’s hot wallets were drained of $4 million. Even a U.S. government-linked crypto wallet was hacked, losing $20 million. These cases highlight one thing: no wallet or platform is immune.

The good thing is that more users started paying attention to crypto wallet security. Cold wallets (offline wallets) are now widely recommended as the best crypto wallet option for long-term storage. Platforms like Ledger and Trezor gained popularity for their strong security features.

This is your wake-up call for anyone involved in crypto—whether trading or storing funds on a crypto wallet in Dubai. Always use secure wallets like CoinCROWD, enable two-factor authentication, and avoid keeping large amounts in online wallets. The future of your crypto depends on it.

4. Governments Eye Digital Currencies

Status of countries all over the world concerning CBDCs. Source: Atlantic Council

2024 saw countries across the globe ramping up efforts to develop Central Bank Digital Currencies (CBDCs). These government-backed digital coins promise the best of both worlds: the speed and efficiency of crypto with the stability of traditional currencies. Currently, over 130 countries, representing 98% of the world’s GDP, are exploring or testing CBDCs.

China is leading the charge with its digital yuan, already used across 260 million wallets in 25 cities. Meanwhile, countries like Jamaica, Nigeria, and the Bahamas have fully launched their CBDCs. Even SWIFT, the global bank messaging network, is testing systems to enable cross-border CBDC transactions. 

The United Arab Emirates (UAE) is actively developing a Central Bank Digital Currency (CBDC), called the "Digital Dirham," and has already made the first cross-border CBDC payment using the mBridge platform, signifying a significant step towards implementing a fully functional digital currency.

CBDCs offer a safe and stable alternative to traditional crypto, especially for users concerned about market volatility. For example, users in countries like Nigeria are starting to see CBDCs as a practical solution for everyday transactions.

Privacy concerns, however, are a major roadblock. Many people fear that governments could monitor spending habits too closely. U.S. officials have paused CBDC plans, citing privacy concerns and potential harm to the banking system.

For crypto enthusiasts in the UAE or beyond, CBDCs could change how we view digital transactions. Stay tuned—it’s a race with massive implications for the future of money.

5. Bull Market Boom After ETF Approval

The crypto sector exploded in 2024 thanks to the approval of Bitcoin spot ETFs. These Exchange-Traded Funds allow people to invest in Bitcoin without the need to own or manage it themselves. This is huge for new investors and institutional players like BlackRock and Fidelity, which now control billions in Bitcoin assets.

Search about “Bitcoin halving”. Source: Exploding Topics

Bitcoin’s price reflected this momentum, skyrocketing from $44,000 at the start of the year to nearly $70,000 by May. Bitcoin halving event added fuel to this bullish market. Halving, which happens every four years, reduces the mining rewards, limiting Bitcoin’s supply. Historically, this has driven demand and price increases.

The good thing is that this buzz has encouraged more people to invest in crypto, including those in the UAE, using platforms like CoinCROWD, one of the best crypto exchanges in Dubai, to join the market.

There are concerns about market manipulation, and exclusivity lingers, though. Many worry the focus on large players could overshadow small investors. Still, this ETF approval marks a significant step in crypto’s journey to mainstream acceptance and long-term growth.

Wrapping Up 2024!

The crypto sector in 2024 saw big wins like smarter blockchains, Bitcoin ETFs, and CBDC growth but struggled with hacks and privacy fears. You can prepare by learning about crypto wallets, staying updated on trends, and embracing tools for secure, real-world use.

Ready to unlock your crypto's potential? CoinCROWD is your go-to for spending crypto in the UAE—fast, simple, and hassle-free. Whether you’re investing or living on crypto, CoinCROWD makes it easy to thrive in the crypto age.