Source: Adobe / Bussarin
The crypto industry is anticipating a positive shift in 2024, with several key trends shaping the landscape.
After a prolonged crypto winter, increased institutional demand and growing Bitcoin adoption are expected to drive innovation. Notable trends to watch include corporate involvement, Bitcoin-centric developments, and scalability across various blockchains.
1. Scalability Solutions: Rollups Take Center Stage as 2024 crypto trend
Addressing transaction speeds and costs on the Ethereum and Bitcoin networks remains a priority.
Rollup projects are expected to gain prominence in 2024, offering scalable solutions. These layer 2 blockchains aggregate multiple transactions into a single off-chain batch, reducing on-chain data processing and storage, resulting in more cost-effective and faster transactions.
Among the projects expected to benefit from these developments are decentralized exchanges (DEXs) like PancakeSwap, Uniswap, and dYdX, with the latter recently passing $10 billion in trading volume.
dYdX Chain has officially passed $10 BILLION in trading volume just one month post mainnet launch lfggg pic.twitter.com/KBWFnhBiZp
— dYdX (@dYdX) January 5, 2024
2. Decentralized Infrastructure Growth
Decentralizing web-hosting and cloud-storage systems have also been identified as a key theme for 2024 by experts like ByteTrade Lab CEO Frank Hu, who recently told Cointelegraph:
“Decentralizing frontends and backends is a critical issue, including when it comes to decentralized web-hosting and cloud-storage systems.”
The growth of decentralized infrastructure is a response to the increasing demand for robust and secure decentralized solutions.
3. Institutional Involvement and Corporate Adoption
Institutional investors and traditional corporations are playing a significant role in shaping crypto trends.
Coinbase’s November survey revealed that 64% of institutional crypto investors plan to increase allocations in the next three years.
Source: Coinbase
Among other things, corporate involvement is driving projects that offer interoperability between Web2 and Web3, making it easier for entities to transition.
4. Spot Bitcoin ETF Approvals Drive Business
The approval of spot Bitcoin exchange-traded funds (ETFs) is set to be a significant business driver in 2024.
Anticipated variations of Bitcoin ETFs, including ETFs with built-in leverage and short ETFs (ETFs that rise in price when the underlying asset falls), are expected to enter the market, offering diverse investment opportunities.
The excitement around Bitcoin is also likely to boost its use as collateral for Bitcoin-based loans like those offered by companies such as Ledn.
The same view was echoed in an annual letter from Ledn founders Adam Reeds & Mauricio Di Bartolomeo from early January:
“In 2024, we expect even stronger growth for Ledn and our clients, on the back of imminent spot Bitcoin ETF approvals and the halving. […] Clients can expect to see new loan features as well as strategic partnerships that allow us to offer our lending services to new clients.”
5. Disruption in Social Media Platforms
Decentralized social media platforms are poised to disrupt traditional ones.
Crypto-driven social platforms that enable transactions in a social context are under development, with one example being the Bitcoin-focused social protocol Nostr.
Stella and Gabriel Assange just joined nostr
More people are realizing that #Bitcoin and nostr are the only two truly decentralized and censorship resistant tools for freedom. pic.twitter.com/52Et39kiqD
— The Bitcoin Conference (@TheBitcoinConf) October 2, 2023
The industry expects these platforms to find product-market fit, eventually replacing traditional social media.
6. Regulatory Challenges Persist
While the crypto industry anticipates positive developments, regulatory challenges remain a significant risk.
As should come as no surprise, regulatory clarity in key markets is crucial for the mainstream adoption of crypto in all of the above-mentioned promising fields for 2024.
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