In 2024, trading volume on the over-the-counter (OTC) crypto market rose 106%. The main drivers were institutional demand, a new ATH for bitcoin and the US elections, according to a Finery Markets report.
Activity in the segment posted its strongest increase in Q4 — up 177% year on year. Volumes settled purely in cryptocurrencies increased 5.4 times, while those using stablecoins rose 311%.
The election of US president Donald Trump, who has signalled a crypto-friendly policy, and bitcoin’s break above $100,000 provided fertile ground for the surge.
The OTC segment also recorded triple-digit growth in Q2 — 110% — driven by increased inflows into spot bitcoin ETFs launched in January.
“Traditional financial leaders have shifted their skeptical stance on cryptocurrencies to neutral or even favorable. This came amid the industry’s development, as institutions began entering crypto markets or considering acquisitions to strengthen their positions in the industry,” the report says.
By year-end, bitcoin retained dominance in the OTC segment, while altcoins expanded their share of trading volumes from 13% to 29%.
Ripple’s XRP moved into third place, with year-on-year growth of 141%. Even so, Finery Markets specialists believe the asset has not fully realised its potential.
The sharpest surge was in Solana (SOL), where volumes increased ninefold.
“Meanwhile, Litecoin (LTC) retained its position as the leading altcoin among institutional investors, posting an impressive 149% increase compared with the previous period,” the experts noted.
Outlook for 2025
Events in 2024 laid the groundwork for further growth tied to institutional adoption of cryptocurrencies, Finery Markets specialists underlined.
Among the trends they expect in the new year:
- pro-crypto sentiment in US politics and the economy, opening the way to a more favourable environment for the industry and potentially unleashing demand for digital assets from American institutions;
- the success of exchange-traded products based on bitcoin and Ethereum could prompt institutions to offer crypto-collateralised lending, spurring investment;
- tokenised traditional assets are likely to gain broad acceptance, redefining trading strategies as markets adapt to 24/7 trading, fractional ownership and increased product liquidity;
- as regulatory frameworks are established, institutional adoption of DeFi will likely grow, leading to a hybrid model in which decentralised platforms integrate with centralised oversight, offering new income opportunities;
- the potential introduction of bitcoin reserves could trigger a global shift away from “zero engagement” policies by countries and corporations;
- second- and third-tier centralised exchanges in the EU may face increasing liquidity pressures due to MiCA requirements, pushing them to seek new business models and technological solutions to remain competitive.
In December, VanEck and Forbes set out their forecasts for the crypto industry.