# Blockchain Market Sees Mixed Trends in December 2024
In December 2024, the blockchain market displayed contrasting movements with a record surge in decentralized exchange (DEX) volumes and a decline in prices of major smart contract platforms (SCP). VanEck’s analysis highlighted the significant growth of Hyperliquid (HYPE), Ethereum’s data availability challenges, and key market trends.
# Price Trends and Revenue Performance of Smart Contract Platforms
Following a rise in November, December saw most smart contract platforms experiencing corrections. The MV Smart Contract Leaders Index (MVSCLE) fell by 12%, with Ethereum (ETH) and Solana (SOL) declining by 10% and 21%, respectively. Conversely, Bitcoin (BTC) was down only 4% due to continuous buying by MicroStrategy and exchange-traded products (ETP).
The average daily revenues of SCPs in December hit $17 million, the highest since April 2024. Ethereum reclaimed its top revenue position, generating $7 million per day, surpassing Solana’s $4 million. However, the emergence of competitors like Sui, Base, and Hyperliquid amid Layer 2 (L2) blockchain scaling strategies is redistributing market share.
# Record DEX Volumes and Hyperliquid’s Success
December’s DEX volumes reached an unprecedented $433 billion, a 14% increase from the previous month. Tron (TRX) and BNB led the market with surges of 178% and 54%, respectively, while Solana and Ton saw declines of 10% and 32%.
Hyperliquid’s $HYPE token surged 234% in December. Initially airdropped on November 29, the token’s market cap skyrocketed from $1 billion to $7.5 billion, placing Hyperliquid among the top 13 most valuable crypto projects with a fully diluted market cap of $28 billion.
Hyperliquid’s decentralized perpetual futures exchange (Perp DEX), designed on its own blockchain, boasts over 100,000 transactions per second capability and low fees, dominating the market. It processed $156 billion in volume in December, significantly outperforming rivals like GMX and Vertex.
# Mantle: Emerging Leader in Ethereum Alt-DA L2 Market
Mantle reported outstanding performance in December, solidifying its position in the Alt-DA Ethereum Layer 2 ecosystem. Its total value locked (TVL) surpassed $2 billion, and the MNT token price neared its yearly high. Mantle’s DEX volumes continued to set records for the third consecutive month with $1.4 billion.
Mantle’s innovative design leverages the Mantle DA data availability network, combining Ethereum’s security with independent data processing to reduce costs by about 90%. Partnership with Chainlink’s CCIP enhances cross-chain functionality, expanding the DeFi ecosystem by incorporating assets like the USDe stablecoin.
# Ethereum’s Data Availability Challenges and Intensifying Competition
Ethereum continues to face fierce competition from emerging players like Celestia in the data availability market. In 2024, Ethereum earned $8.4 million from blob fees, vastly outpacing Celestia’s $72,000. However, Ethereum’s revenue share dropped from 66% in 2023 to 41% in 2024.
To address scalability and revenue reduction issues, Ethereum is exploring enhancements such as increasing the gas limit to boost capacity and reduce fees, aiming to secure long-term scalability of its ecosystem.
Celestia’s cost-effective and innovative data sampling technology is gaining attention, yet it struggles to match Ethereum’s decentralized ecosystem, security, and network effects. In December, Celestia briefly surpassed Ethereum in handling blob data due to a spike in transactions from its primary client, Eclipse, but its overall market impact remained limited. Celestia’s data cost stands at $0.19 per megabyte, far cheaper than Ethereum’s $11.14, but the profitability gap persists.
VanEck’s December 2024 report reveals the dynamic changes in the blockchain market driven by Hyperliquid’s rapid growth and record-breaking DEX volumes. Ethereum remains central to the ecosystem but faces challenges in maintaining competitive edge through solving scalability and data availability issues. The blockchain market is set to evolve rapidly, fueled by technological innovation and heightened market competition.
