2024 Crypto OTC Trading Surged 106% YoY: Finery

The cryptocurrency industry showed strong growth in 2024, particularly in the over-the-counter (OTC) trading sector, which saw a remarkable 106% year-on-year surge, according to experts from Finery Markets. This growth occurred as the digital asset market reached new heights and was fueled by a positive market sentiment throughout the year.

Finery Markets, a multinational non-custodial crypto infrastructure firm, attributed the OTC surge to rising demand for stablecoins and an increase in crypto-to-crypto transactions. This growth was most noticeable in the second half of 2024 and particularly in Q4.

In terms of quarterly performance, Q4 experienced the most significant growth, outpacing all other quarters. Q2 also showed notable growth, largely due to the successful launches of Bitcoin exchange-traded funds (ETFs), with a growth rate of 110%. The first and third quarters of the year recorded 80% and 78% growth rates, respectively.

Stablecoin transactions grew by 147% year-on-year, with Q4 seeing an even more remarkable 191% increase. Stablecoins, which are pegged to fiat currencies like the U.S. dollar, gained substantial traction due to positive market sentiment following elections.

Tether remained the dominant player in the stablecoin market, with its market capitalization reaching $140 billion in mid-December, marking a new milestone. Circle’s USD Coin also made a strong recovery, nearing its $56 billion peak from before the early 2023 banking crisis.

Crypto Outlook for 2025

Looking ahead to 2025, Finery Markets expressed a generally bullish outlook for the cryptocurrency industry. The firm expects institutional adoption of decentralized finance (DeFi) protocols to accelerate, provided that regulators offer clearer guidelines for the sector.

Additionally, tokenized real-world assets (RWAs) are seen as a major growth area, offering the potential to improve global liquidity and enable 24/7 trading across traditional markets. The success of Bitcoin and Ethereum ETFs is expected to encourage corporations to explore crypto-based loans.

Another key trend in 2025 is the potential shift in global Bitcoin reserves. As spot Bitcoin ETFs on Wall Street now manage over $100 billion in assets, there is increasing interest from policymakers, including U.S. President Donald Trump, to explore the creation of a national Bitcoin reserve. This pro-crypto sentiment within U.S. politics could further drive mass adoption of digital assets, particularly from institutions based in the U.S.

Challenges in Europe

While the outlook for 2025 is generally positive, Finery Markets highlighted potential challenges in Europe. Smaller centralized exchanges in the region may face liquidity issues, especially with the implementation of the new MiCA (Markets in Crypto-Assets) regulatory framework. These platforms may need to adopt broker-dealer models and seek new partnerships to remain compliant with the regulations.

In conclusion, 2024 marked a year of significant growth for OTC and stablecoin transactions, and experts are optimistic about continued expansion in 2025, particularly in institutional adoption and tokenized assets. However, regulatory changes in Europe may present challenges that need to be navigated.