Crypto’s 2024 Surge: Insights from Past Market Trends

What Pumped in 2021? The Sector Breakdown

Ever wonder what made the crypto bull cycle of 2021 such a spectacle? It wasn’t just Bitcoin or Ethereum—it was a cocktail of narratives, innovation, and hype. Let’s break it down sector by sector so you can see what fueled the fire.

1. Bitcoin (BTC) as Digital Gold

• Trigger: Institutions jumped in big—companies like MicroStrategy and Tesla bought Bitcoin, while PayPal added crypto purchases.
• Narrative: Bitcoin was marketed as a hedge against inflation, like digital gold you could carry in your pocket.
• Key Moment: In December 2020, Bitcoin broke its 2017 all-time high to reach ~$28,800, setting the tone for 2021’s bull market.

2. Ethereum, Dino Coins, and Smart Contracts

• Trigger: Excitement over Ethereum 2.0 and DeFi made ETH the tech playground of crypto.
• Narrative: Ethereum powered decentralized apps (dApps), positioning itself as the infrastructure for Web3. Other big-cap altcoins also soared, driven by speculative hype and their unique narratives (e.g., Cardano's Alonzo upgrade for smart contracts).
• Key Moment: ETH hit a new high of ~$1,400 in January 2021 and kept climbing.

3. The DeFi Boom

• Trigger: Platforms like Uniswap and Aave offered crazy-high yields and economic models, drawing a crowd.
• Narrative: DeFi promised finance without banks—just code and your wallet.
• Key Moment: Total Value Locked (TVL) in DeFi hit $123 billion by mid-2021, proving it wasn’t just a fad.

4. Binance Smart Chain (BSC) and Layer 1 Alternatives

• Trigger: Ethereum’s high gas fees pushed users to explore cheaper networks like BSC, Solana, and Avalanche.
• Narrative: These so-called "Ethereum killers" offered faster, cheaper options for users and developers.
• Key Moment: PancakeSwap on BSC and Solana’s rapid growth put the spotlight on alternatives.

5. NFT Explosion

• Trigger: High-profile sales like Beeple’s $69 million NFT and celebrity endorsements.
• Narrative: NFTs weren’t just pictures; they were assets revolutionizing art, gaming, and collectibles.
• Key Moment: Platforms like OpenSea saw record-breaking trading volumes mid-year.

6. Meme Coins and Community Tokens

• Trigger: Social media frenzy (and Elon Musk tweets) sent Dogecoin (DOGE) and Shiba Inu (SHIB) soaring.
• Narrative: These tokens turned memes into money, offering low-cost ways to join the hype.
• Key Moment: DOGE peaked at ~$0.73 in May 2021, turning jokes into jackpots.

7. GameFi and Play-to-Earn

• Trigger: Blockchain games like Axie Infinity showed you could make real money playing games.
• Narrative: GameFi combined gaming with DeFi, letting players earn through tokenized rewards.
• Key Moment: Axie Infinity’s user base surged, with its token (AXS) spiking.

8. Metaverse Tokens

• Trigger: Facebook’s rebrand to Meta spotlighted virtual worlds.
• Narrative: Projects like Decentraland (MANA) and The Sandbox (SAND) gave users a taste of the digital future.
• Key Moment: Metaverse tokens soared after Facebook’s big announcement in October.

The Final Act: Peaks and Declines

By late 2021, speculative mania pushed bull run crypto sectors like GameFi and meme coins to their limits. Bitcoin hit ~$69,000, Ethereum reached ~$4,800, and excitement was at its peak. But markets turned as macroeconomic fears, rising interest rates, and major collapses (like FTX and Terra in 2022) cooled the frenzy.

Each sector brought its own energy to the crypto bull cycle, and understanding these trends helps you spot opportunities in the next bull market. 

2024’s Bull Cycle Is Breaking the Mold

Every crypto bull cycle tells a unique story, and 2024’s is no exception. This time, the market is rewriting the playbook with new catalysts, evolving crypto narratives, and unexpected sector breakouts. Let’s dive into what’s setting this bull run crypto apart.

1. Bitcoin (BTC): The Star of the Show

• Catalysts:
  • U.S. approval of spot Bitcoin ETFs, led by BlackRock, unlocked waves of institutional investment.
  • April 2024’s Bitcoin halving increased scarcity, pushing demand sky-high.
  • Pro-crypto policies under Trump’s re-election brought optimism, including hints at regulatory easing.
  • Continuous adoption from new TradFi companies, not to mention MicroStrategy which has been accumulated for years.
• Impact: Bitcoin raced toward $100,000, shattering previous all-time highs. It became the rally’s anchor, pulling the market up with it.

2. Meme Coins and Community Tokens: A Wild Ride

• Catalysts:
  • Elon Musk’s involvement with Trump and proposal for D.O.G.E revived the demand for DOGE.
  • Murad’s theory of a memecoin supercycle sparked massive social media buzz.
  • Regulatory-compliant exchanges like Robinhood and Coinbase embraced memecoins, listing tokens like PEPE, WIF, and FLOKI.
  • Big exchanges like Binance listed new memecoins with tiny market caps, such as NEIRO and ACT, leading to explosive gains (e.g., NEIRO x10, PNUT hitting a $2.5B market cap in 3 days).
  • Hype turned chaotic, with scams and Pump.fun controversies cooling enthusiasm.
• Shift in Focus: Binance’s CZ urged attention toward utility tokens, nudging sentiment away from overhyped memes.

3. Layer 1 Blockchains: A Surge in Innovation

• Catalysts:
  • SUI and SOL dominated, breaking all-time highs, followed by a catch-up from networks like FTM.
  • When media buzz about SOL outperforming ETH peaked, SOL cooled off and entered a steady phase.
• Outlook: Attention now shifts to smaller players like SEI and APT, with investors hunting the next breakout.

4. Ethereum (ETH) and Layer 2s: Quiet but Promising

• Catalysts:
  • ETH surpassed $3,500 as Bitcoin dominance dipped, sparking modest interest.
  • Leaders like OP, STRK, and ARB gained ground, but without massive hype.
• Room to Grow: Many expect Layer 2 solutions to shine later in the cycle, especially as their ecosystems mature.

5. Dino Coins: Old Favorites Roaring Back

• Catalysts:
  • Trump's pro-crypto stance, including promises of no capital gains tax on U.S. crypto, boosted optimism for risk assets.
  • Gensler’s resignation shifted SEC policy expectations, reducing legal threats to crypto companies.
  • Institutional money flowed into established cryptos with enterprise use cases, supported by ETF filings.
  • Returning U.S. retailers favored "dino coins" like XRP and ADA from previous cycles, driving prices up.
  • Low retail holdings during the bear market created FOMO, amplifying large-cap altcoin gains as volumes surged.
  • The most outstanding crypto in this list could be XRP, which soared by 600% within a short period of time, recently surpassing USDT to be the third largest crypto by market cap.
• Impact: These "old tech" coins attracted returning retail investors familiar with them from previous cycles, creating an unexpected rally.

Alternative Narratives: Surprise Breakouts

• Highlights:
  • Dino Coins Staying Hot: XRP, ADA, and old favorites like VET, VXG, and IOTA continue making headlines with impressive gains, while occasional sector-wide pumps keep the momentum alive.
  • GameFi & Metaverse: Early movers like MANA and SAND showed renewed strength.
  • AI Agents: Solana and Base AI projects led the charge in this emerging trend. Alongside this niche, the AI sector, in general, saw pretty good increases in price.
  • DeFi: Protocols like AAVE and rising stars like ENA gained traction with strong community support.
  • Real-World Assets (RWA): ONDO and SOLO turned heads with TradFi partnerships, but OM is the biggest gainer so far.
  • DePIN: Small caps like XYO and MOBILE saw dramatic one-day pumps.
  • NFTs: Discussions of a resurgence are brewing, but trends remain unclear.

Lessons from 2021: What’s Different Now?

In 2021, Bitcoin and Ethereum set the pace, but 2024’s crypto bull cycle is a multi-sector affair. Meme coins rose faster—and crashed harder. Layer 1s proved their staying power. And while speculative froth is still part of the game, utility and real-world value are stronger drivers this time around.

The big question: What’s next? With so many narratives playing out, the smartest move might be diversifying your bets while keeping a close eye on evolving sectors. After all, isn’t spotting the next trend what makes crypto so exciting?

How to Spot and Prep for the Next Part of the Bull Run

The crypto bull cycle evolves with every phase, and knowing where to focus is key to staying ahead. Let’s break down the shifts in investor mindset and how you can prepare for what’s next.

What’s Shaping Investor Sentiment?

• Lessons from 2021: Investors once chased hype in GameFi, play-to-earn, and metaverse projects. But many now see these as unstable during bear markets. The wild “metaverse pump” days—when projects could moon just by mentioning the word—are behind us.
• VC Tokens Under Scrutiny: Retail investors are wary of projects heavily backed by venture capital (VC), fearing token dumps. This has led to a shift toward memecoins, viewed as “anti-VC,” thanks to their high volatility and retail-driven gains. Yet, not all memecoins are created equal—rug pulls and scams have burned many.
• Utility Takes Center Stage: Cryptos with real-world use cases, tradfi partnerships, and clear utility are in demand. Many expect pro-crypto U.S. policies to attract traditional finance (tradfi) flows, making these tokens prime opportunities.

What’s Next in the Bull Run Crypto?

• Emerging Trends:
  • Early movers in decentralized AI, DePIN, and tokenized real-world assets are gaining attention.
  • Institutional money is shaping the crypto capital venture space, leaning toward projects with tangible value.
• Stablecoin Issuers on the Rise: Projects focused on creating sustainable stablecoins pegged to the U.S. dollar are gaining traction. With Trump’s administration supporting USD dominance, stablecoins could see increased demand, bolstered by their potential for real-world use and regulatory backing.
• The Need for a Strong Narrative: Investors seek a compelling story to draw in more retailers. Some believe GameFi could make a comeback, but its economic models need fixing to sustain interest.
• Double Yield and Memecoins: Restaking protocols and well-developed memecoins could stand out, but execution will determine success.

How to Prepare for the Rest of the Bull Cycle

1. Diversify Smartly: Balance risky bets like memecoins with stable infrastructure tokens.
2. Stay Informed: Track emerging crypto sectors, macroeconomic trends, and evolving regulations.
3. Use Data to Strategize: Follow market cycles and historical patterns to guide your moves.

Every crypto bull cycle has its surprises, but preparation makes all the difference. Which trend will you bet on next?