LOOKING BACK AT WEB3 IN 2024

As 2024 has come to a close, the Web3 landscape has solidified its place as a transformative force in technology and society. The year 2024 has been marked by groundbreaking innovations, regulatory milestones, and the blossoming of Fintech ecosystems. From the integration of artificial intelligence in blockchain to the tokenization of real-world assets, Web3 has demonstrated its potential to reshape industries and redefine how we interact with technology.

Though there have been many breakthroughs in 2024, we will be looking at selected few trends below—those that have not only defined the year but also paved the way for broader adoption and new opportunities in the decentralized financial space. These trends offer valuable insights into where Web3 is heading and what lies ahead in this ever-evolving digital frontier.

The Rise of AI AGENTS (I can very much see an anime coming from this title)

Artificial intelligence (AI) agents are self-governing programs that can carry out actions, make choices, and even communicate with other agents or systems without the need for human assistance. Real-time decision-making, intelligent automation, and predictive analytics are made possible by the integration of these agents into trading platforms, decentralized finance (DeFi) protocols, and governance mechanisms in the context of crypto currency.

?The desire for automation, transparency, and decentralization is what propels the synergy between blockchain and AI. While AI can process and understand data at scale, blockchain offers a tamper-proof ledger. When combined, they open up thus far of unthinkable possibilities. AI agents are one such possibility of them that is starting to shake things up.

?The final result of using AI agents , is hyper-personalised financial services , autonomous supply chain networks, improved risk mitigations and fraud prevention , better privacy screenings , and the most important is improved profitability. Case in point, Coinbase's introduction of Based Agents in October 2024 led to a 15% increase in transaction volume in November 2024. (Source: Coinbase)

Between 1st November 2024, to 6th Dec 2024 ,total Revenue for AI Agents was $8.7M in the span of 5?Weeks (Source: Vaneck)

Tokenization of Real-World Assets (RWAs)

Representing the ownership rights of real-world assets as onchain tokens is known as tokenization. By creating a digital representation of the underlying asset, this procedure helps to close the gap between digital and physical assets and permits onchain administration of the asset's ownership rights. .(Source: Chain.link)

While digital-asset tokenization made modest inroads from 2017 to 2023, the union of regulatory clarity, technological advancements, institutional adoption, and market demand in 2024 brought the tokenization of RWAs into the spotlight. It goes without saying, really—even I, for a moment, thought about whether I could tokenize my Louis Vuitton bag and experiment with the technology to see where it might lead. It’s not unrealistic to think that business moguls recognize that the future lies in digital money, and history shows us that pioneers often get the biggest piece of the pie. This technological transformation bridged the gap between traditional finance and blockchain, solidifying tokenization as a game-changing innovation for global markets.

That being said, onchain securities grew by 61% in 2024, with the value of tokenized securities exceeding $50 billion, marking an evolutionary step in digital finance.

Regulatory Developments and Institutional Adoption

The re-election of President Donald Trump in 2024 ushered in a more favorable regulatory landscape for cryptocurrencies and blockchain technology. This shift has had significant implications for the industry, marked by Bitcoin's price surpassing $90,000 and achieving a market cap of $1.5 trillion. ?

?Before the 2024 elections, many countries were hesitant to regulate crypto due to its decentralized nature, fearing either stifling innovation or fostering illegal activities. Regulations varied widely, creating a fragmented landscape. Post 2024: The U.S.'s pro-crypto stance under the Trump administration provided a template for other nations to emulate. Key countries in Europe, Asia, and Latin America began developing clearer and more consistent regulatory frameworks to remain competitive. Global investors started viewing crypto as a viable hedge against inflation and economic instability, especially in regions with volatile fiat currencies.

The U.S.’s regulatory leniency under Trump could indeed position it as a leader and a "guinea pig" for global fintech adoption. The ripple effects—ranging from regulatory competition to cross-border collaboration—are likely to accelerate fintech adoption worldwide, with nations adapting their policies to remain attractive to U.S. investors and businesses.. However, careful balancing of risks and opportunities will be crucial for sustainable global fintech growth.

Conclusion:

What’s most exciting is that 2024 wasn’t just a year of innovation—it was a year of evolution. It demonstrated how collaboration between technology, institutions, and individuals could redefine industries and foster global connectivity.

The road ahead promises more challenges, but it also holds unparalleled opportunities. As we step into 2025, one thing is certain: the decentralized future isn’t coming—it’s already here. And the question isn’t whether you’ll be a part of it, but how.

Here’s to asking questions, staying curious, and discovering how Web3 can impact our lives and the world around us.