Predicting 9 Key Crypto Trends for 2024
The cryptocurrency industry is rapidly developing from year to year. So, to be on trend, you should keep an eye on a lot of recent events and news related to this topic.
2024 started better than most of us expected. It is in the current market that the foundation is being laid for the incredible mass adoption of the current cycle. Very soon, we are going to witness a record number of participants who are likely to join the exciting world of cryptocurrency.
Analysts strongly advise closely monitoring the crypto trends for 2024 and beyond. Sometimes it is difficult to fully keep track of all the situations that occur in the information field. We have prepared for you a comprehensive summary of 9 current crypto trends. That can help you keep up to date with events in this rapidly developing world. Let's get started!
1. Bitcoin Ecosystem
Since the beginning of 2024, Bitcoin stays at the top of the cryptocurrency trends list. Following the Bitcoin ETF approval and halving, some analysts predict it to increase by 123% within a year. Also, Bitcoin integration with DeFi and NFTs also has a great potential to unlock numerous innovation possibilities.
The dominance of Bitcoin in 2023 jumped from 38% to 50%. In 2024, its revival is stimulated by at least three main catalysts:
1) the fourth Bitcoin halving in April,
2) Bitcoin Spot ETF Approval,
3) the growth of opportunities and ecosystems within BTC–BRC-20, Ordinals, as well as L2 on the BTC network.
In the past year, a significant experimentation on Bitcoin took place with the growth of Ordinals and BRC-20 tokens. According to Binance, Bitcoin Ordinals inscriptions and BRC-20 tokens impacted Bitcoin’s growth and dominance in 2023. These are essentially the NFTs and altcoins of Bitcoin, but unlike NFTs, these assets are inscribed directly onto the blockchain.
Bitcoin scaling solutions, on-chain exchanges, wallets, and bridges are all moving towards improving the user experience and utility of these assets. The sector has the potential for massive growth in the future.
2. Web 3.0
Web 3.0 makes the Internet more personalized, allowing users to have more control over their personal data and online interactions. We can say that Web 3.0 is aimed at creating more open and compatible sites that will bring increased usefulness to participants.
In 2024, significant growth and development of the most important areas of the blockchain industry and Web 3.0 technologies are expected. Which represents potential key areas for the future of the crypto market.
There will be more and more integrations of Web 3.0 with the gaming industry, metaverse, NFTs, AR and VR, social platforms, etc. Cryptocurrency also will gain increasing acceptance with Web 3.0. This will specifically impact cryptos linked to the third version of the Internet, like Ethereum and Helium.
3. Rollups
A rollup is a popular L2 blockchain solution that processes transactions off the main blockchain, thereby lowering transaction costs and improving throughput. Rollups reduce the computational strain on the primary blockchain by performing transactions outside of the main L1 chain.
Time has proven that Ethereum scaling solutions like Optimism and Arbitrum are extremely profitable. Today, rollups are considered among the best business models in the crypto industry. We can witness the constant appearance of the new rollups, each fighting for their market share.
Additionally, the idea of rollups is spilling into other ecosystems, with new scaling solutions launching on Bitcoin and other chains. We foresee rollups becoming a very effective solution, consolidating around 1–2 main chains per ecosystem, alongside a few specialized chains that capture niche markets.
4. Crypto ETF approval
ETF is among new and emerging crypto trends for 2024. ETF (Exchange Traded Fund) approval is a regulatory process which can increase the accessibility and legitimacy of cryptocurrencies in the financial market. You can read more about Bitcoin ETF here.
Bitcoin Spot ETFs are needed so that investors can earn on the growth of the cryptocurrency without direct purchase. Instead, they buy shares of an exchange—traded fund (ETF), which is linked to the exchange rate of the underlying asset - BTC. So, investors do not need to think about the security of storing cryptocurrencies, and large corporations and funds can legally earn on crypto.
In January 2024, the U.S. Securities and Exchange Commission (SEC) finally approved Bitcoin Spot ETFs. The crypto community has been waiting for this for 13 years. Until January 2024, there were only Bitcoin futures ETFs on the American market. They were launched in 2021 and created a new way to invest in crypto.
Bitcoin futures ETFs are needed to speculate on asset price forecasts. To do this, investors enter into a contract to buy/sell cryptocurrencies at a predetermined price on a certain date and time. If you make a mistake with the forecast, you will have to close the deal at a loss.
The launch of Bitcoin Spot ETFs allows investors to buy and sell stocks that are linked to Bitcoin with its real current exchange rate. The investor can choose the moment to buy and sell.
5. NFT market growth
That is not for the first time NFT has been on the list of cryptocurrency market trends. We think that the potential of NFT technology has not yet been revealed. The next active growth of the NFT market will be because of the movement of brands and the music industry towards NFT.
Unlike conventional NFTs, which only represents a visual content, a music NFT encompasses both visual and auditory elements. Although the royalties from mainstream music platforms such as Spotify are relatively small, artists can interact with their fans and reward their loyalty with unique content.
The market has cleared of meaningless projects, brought new ideas and is gaining volume and popularity again. For example, NFTs are becoming the main assets of brands, as more and more well-known brands are creating NFTs for ordinary consumers. Fashion industry also is exploring the potential of NFTs. Here, NFTs can be used to create digital representations of clothing and accessories.
6. AI crypto projects
AI projects have been advancing in the crypto world in recent months. As of spring 2024, CoinGecko have registered over 260 AL crypto coins. One of the most successful examples is Fetch.ai, the value of which increased by 329% between mid-February and mid-March 2024. According to CoinGecko Fetch.ai (FET) is a third top crypto coin by market cap, with a market of $1.41 billion.
The integration of artificial intelligence tools into the crypto industry promises significant prospects, and we expect to realize part of this potential in 2024. More and more companies will use artificial intelligence algorithms to speed up transactions, analyze data, and improve security and efficiency.
Tools for trading using artificial intelligence will become more advanced and convenient, making crypto trading more accessible to a wide audience. Artificial intelligence will also become an important part of real-time sentiment analysis, regulatory compliance, and forecasting.
An increase in the number of personalized trading assistants based on artificial intelligence is expected. They will adapt to the individual preferences of traders to provide personalized advice and manage transactions.
7. Ethereum ETFs
Ethereum ETFs is one of the emerging crypto trends in 2024. On May 23, the U.S. Securities and Exchange Commission (SEC) approved eight spot Ether ETFs to be listed on their respective exchanges. Analysts predict Ethereum ETF will become one of the major factors in the bullish market movements in 2024.
The price of Ethereum has risen above $3,800 after a prolonged consolidation around $3,000 for a long period of time. ETH is trading at $3,806 at the time of writing. The main reason for the takeoff is expected to be the fact of Spot ETFs is approved. Now that the decision to approve the Spot Ethereum ETF is made, minor changes can be expected. But the steep rise to the new ATH may take longer, perhaps by the middle or end of 2024.
Following the Ethereum ETF approval, that is expected to see the increased interest in Ethereum-based projects. As well as a growing adoption of Layer 2 networks, which should result in a more innovative crypto ecosystem.
8. Bitcoin runes launch
The latest Bitcoin halving in April also coincided with the launch of Bitcoin Runes, a new protocol that will allow crypto lovers to create fungible tokens on the Bitcoin blockchain. Bitcoin Runes was developed by Casey Rodarmor, who also created and launched Bitcoin Ordinals in 2023. Actually, Bitcoin Runes are Rodarmor's response to the BRC-20 protocol.
Bitcoin Runes are part of a broader developer movement known as Decentralized Bitcoin Financing (DeFi) or BTCFi, which aims to increase the usefulness of the Bitcoin network.
By adding the recently launched Runes protocol to Ordinals and BRC-20, on April 26, 2024, the Bitcoin network reached an all-time high of 926,000 daily transactions. As of May 22, 2024, runes accounted for 12.7 Bitcoin transactions, which is much higher than Bitcoin Ordinals (0.7%) and BRC-20 assets (1.5%).
At the moment, the Bitcoin Runes market has very low liquidity and has demonstrated extreme price volatility following its launch. Critics have blasted the protocol for its role in ramping up bitcoin transaction fees. Although, as of late April, more than two-thirds of Runes were in the red, such factors as price volatility and low unit bias have driven speculation on these coins.
9. Meme Coin Development
Meme coins are a subset of cryptocurrencies usually created as satire and intended as a tribute to internet culture. A meme coin is a popular trend inspired by internet memes, or social media jokes. As of May 27, 2024, the total market cap of meme coins has surpassed $63 billion.
Recently, meme coin trading has emerged as a major narrative because these tokens have gained popularity across various networks. The most popular blockchains for meme coin development are BNB Chain, Ethereum, and Solana.
Conclusion
As you can see, 2024 promises many exciting trends in the world of cryptocurrencies. Bitcoin is expected to increase its value and popularity, Coinbase revenues will grow, Ethereum will establish itself as a powerful blockchain, and the introduction of stablecoins will expand.
It is also expected that more and more financial companies will explore network innovations and artificial intelligence, which is playing an increasingly significant role in the cryptocurrency world. If you are already investing in cryptocurrency, we recommend that you regularly review your portfolio to assess how these trends may affect your investments.
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