Top trends in crypto 2024

Summary

2024 is here, and we are excited to take a look at what is waiting for us in crypto this year. Here are top-10 trends we anticipate in 2024 (read further for more):

1. Bitcoin hegemony: Bitcoin is expected to maintain dominance in the crypto market due to institutional interest and its individual narrative outperforming traditional assets.
2. Web3 infrastructure on the rise: The focus is shifting from decentralized finance to developing infrastructure for a Web3 future, with a spotlight on finding potential Web3 apps that bridge the gap between early adoption and mainstream use.
3. Evolution of Layer-2s: Layer-2 scaling solutions have accelerated the growth of the sector, but have not significantly diverted activity away from Ethereum mainnet. The sector is moving towards modular architecture and the potential for lower transaction fees.
4. The transition from the USD to a multipolar world: The global monetary regime is shifting away from USD dominance, but the USD remains the world's reserve currency. Bitcoin and other digital stores of value are seen as playing a role in the emerging shift towards a multipolar world.

To read all 10 trends that we have highlighted, follow the link to our blog: https://blog.mezen.io/top-trends-in-crypto-2024/

Below we’ve accumulated the opinions of different industry players on what is coming in 2024.

Trends in crypto in 2024 by Coinbase:

• Bitcoin hegemony: In 2023, Bitcoin dominance surpassed 50% due to institutional participation in US spot bitcoin ETFs. Institutional flows favoring Bitcoin are expected to persist in 2024, posing challenges for alternatives amid a robust narrative. Despite potential macroeconomic challenges, Bitcoin's unique narrative and outperformance endure. Regulatory shifts and the US commercial real estate sector may impact regional banks.
• Web3 infrastructure on the rise: Post-2018 -2019 crypto winter, the focus shifted to Web3 infrastructure, including scaling solutions and security services. The challenge lies in identifying and monetizing successful Web3 apps. Market players seek applications bridging early adoption and mainstream use in the evolving trading regime.
• The layer-1 equilibrium: On-chain activity moderation reduced demand for alternative layer-1s, with Ethereum dominating. Alt L1s repurpose for sector-specific platforms. Modular blockchains gain traction, emphasizing differentiation over integration, a trend continuing through 2024.
• The evolution of layer-2s: Layer-2 scaling solutions like OP Stack and Arbitrum Orbit grow but do not divert activity from the Ethereum mainnet. Despite high ETH locked on rollup-linked bridges, transaction counts on Ethereum remain stable. Modular architecture, exemplified by Eclipse, challenges conventions.
• The transition from the USD to a multipolar world: De-dollarization discussions rise in 2024, driven by growing US macroeconomic imbalances. USD dominance persists, but increased interest in cross-border payment solutions emerges. Crypto advocates argue for a role in shifting from a unipolar to a multipolar world.
• An acute issue of regulatory clarity: Coinbase survey indicates increasing digital asset allocations, but US regulatory uncertainty hampers opportunities. The lack of defined crypto regulations threatens the US as a financial leader. Unfavorable perception of US banking supervisors complicates crypto companies' banking relationships.
• Tokenization, redux: Tokenization gains traction, especially in high-yield environments. US Treasury exposure on public networks surges. Expansion to other instruments faces regulatory complexities. Private blockchains prevail due to public network risks. Regulatory progress in key jurisdictions is crucial.
• Rise of GameFi: Web3 gaming resurges in 2H23, targeting mainstream gamers. Skepticism towards Web3 "play-to-earn" models leads to developer experimentation. Web3 architecture's potential in user acquisition and retention remains unproven. 2024 game releases may provide crucial sector data.
• Decentralized infrastructure paves the way for next-gen technology: Focus in 2024 on decentralizing real-world resources, including decentralized physical infrastructure networks (DePIN) and decentralized compute (DeComp). DePIN projects incentivize participants to build physical infrastructure outside centralized control. DeComp explores decentralized solutions for computationally expensive AI training.
• Validator middleware and customizability: Validator middleware solutions, like restaking and distributed validator technology (DVT), enable customization for changing economic conditions. EigenLayer's restaking on Ethereum mainnet offers potential income streams. DVT in proof-of-stake networks enhances security and decentralization, allowing solo stakers to earn rewards without collateral.

Trends in crypto in 2024 by Pantera:

• The resurgence of Bitcoin and “DeFi Summer 2.0”: Bitcoin dominance rose from 38% to 52% in 2023, fueled by the upcoming fourth halving, anticipated Bitcoin spot ETF approvals, and enhanced programmability. Bitcoin L2s, scalability layers, and potential "DeFi Summer 2.0" are on the horizon, with Wrapped BTC (WBTC) at a $6 billion market cap. Expect the increased popularity of Bitcoin NFTs in 2024.
• Tokenized social experiences for new consumer use cases: Web3 shifts from finance to social, seen in friend.tech's tokenized experiences on Base L2 and projects like post.tech on Arbitrum. Tokenization redefines social interactions with fungible tokens as points and loyalty systems and non-fungible tokens as profiles and social resources. Applications like Lens and Farcaster integrate DeFi with social networks, while projects like Blackbird popularize tokenized loyalty points.
• An increase in TradFi-DeFi “bridges”: Legal actions in 2023, including XRP rulings and Grayscale ETF litigation, led to increased institutional interest in Bitcoin and Ethereum. In 2024, institutional adoption is expected, seeking ETFs, tokenized assets, and TradFi products. Stablecoins, especially non-USD variants like EURC and British Pounds, play a vital role, potentially creating an on-chain fiat foreign exchange market.
• The сross-pollination of modular blockchains and Zero Knowledge Proofs: Modular blockchains and Zero Knowledge Proofs (ZKPs) matured, focusing on co-processors, privacy layers, proof marketplaces, and zkDevOps. ZKPs will facilitate smart contract composability and flexibility in the modular blockchain stack, with potential use cases in identity and privacy preservation.
• More computationally intensive applications may move on-chain: Ethereum L2s and Solana address decentralized applications' scalability, making computationally intensive applications like AI systems, DePIN, knowledge graphs, and games economically feasible on-chain. This shift can reshape the on-chain data economy, improve user and developer experiences, and eliminate gas fees and compute power constraints.
• Consolidation of blockchain ecosystems and a “spoke-hub” model: Layer 1 (L1) and Layer 2 (L2) blockchains proliferate, with larger players like Arbitrum and Solana benefiting. Smaller ecosystems focus on specific verticals, utilizing appchain toolkits from general-purpose public blockchains. The "hub-and-spoke" model emerges, with major rollup-as-a-service vendors like Caldera, Conduit, and Eclipse gaining prominence in 2024.

Trends in crypto in 2024 by Binance:

• Bitcoin halving: Bitcoin miners earn income through block rewards and transaction fees, with rewards halved every 210,000 blocks. The next halving is expected in April 2024, reinforcing BTC's scarcity and "digital gold" status.
• Stablecoin supply: Q4 2023 showed a positive net change in stablecoin supply for the first time since Q1 2022, indicating potential buying pressure. Monitoring future trends will determine if this is temporary or sustained.
• NFT volumes: NFT trading volumes experienced a downturn in 2023 but saw a significant uptick in November, particularly with Bitcoin NFTs reaching over $375M in volume. Monitoring these trends is crucial for understanding market sentiment in 2024.
• Protocol fees: Top crypto projects saw a steady increase in fees throughout 2023, with Ethereum leading. Monitoring protocols and subsectors with the best fee growth is crucial for assessing sustainable business models.
• Layer 1s: Ethereum remains dominant in smart contracts, but alternatives like Solana and Toncoin show promise. Ethereum's Shanghai Upgrade in April fostered DeFi markets, while BNB Chain launched opBNB and BNB Greenfield, expanding the ecosystem.
• SocialFi: SocialFi, revolutionizing social interactions, saw notable growth in projects like friend.tech, generating $25M in protocol fees. Successes of SocialFi projects like Farcaster, Lens Protocol, and Binance Square in 2024 will shape the future of Web3 social interactions.

Trends in crypto in 2024 by a16zcrypto:

• Resetting the UX of the future: Cryptocurrency UX has remained largely unchanged since 2016, but new tools like passkeys, smart accounts, and embedded wallets aim to make Web3 more mainstream and secure, enhancing user experience.
• The rise of the modular tech stack: Open-source modular architectures offer deep integration, optimization, and permissionless innovation, fostering competition. The biggest advantage lies in unlocking permissionless innovation, allowing specialized participation, and incentivizing competition.
• AI + blockchains come together: Decentralized blockchains counterbalance centralized AI, reducing costs and democratizing AI innovation. Crypto technology aids in tracking content origin, decentralizing generative AI, and governing AI democratically for safer consumer experiences.
• Play-to-earn becomes play and earn: Play-to-earn games transform gaming, allowing users to be compensated for their time. As part of the creator economy, P2E games evolve, shifting dynamics in managing gaming economies while becoming a norm.
• Guaranties for games made by AI: Ensuring AI models in Web3 games are guaranteed and executed without corruption is crucial. Crypto provides guarantees for AI alignment, addressing incentive design problems and ensuring game integrity.
• Formal verification becomes less formal: Smart contract developers face challenges, and a new wave of tools simplifies formal verification with atomic execution and improved SMT solver performance. This leads to more robust smart contract protocols and reduces the risk of costly hacks.
• NFTs become ubiquitous brand assets: Brands increasingly use NFTs for mainstream consumers, representing customer identity, bridging physical and digital goods, and co-creating products. NFTs are expected to become ubiquitous digital brand assets for various companies and communities in 2024.
• SNARKs go mainstream: SNARKs become more usable, verifying computational workloads and producing cryptographic receipts. With applications in IoT, media editing, memes, LLM inferences, IRS forms, and unforgeable bank audits, SNARKs are on the verge of mainstream adoption.

Trends in crypto in 2024 by The Economic Times:

• Central Bank Digital Currencies: In 2024, countries are expected to significantly develop and implement their own Central Bank Digital Currencies (CBDCs), a paradigm shift in government acceptance of digital assets, enhancing financial transactions and monetary policy effectiveness.
• Interoperability and cross-chain solutions: In 2024, blockchain interoperability will be a key focus, facilitating seamless communication and asset transfer between different blockchain networks, fostering collaboration and innovation in the decentralized landscape.
• Enhanced security measures: The crypto industry is expected to prioritize security measures in 2024, investing in robust infrastructure and advanced encryption techniques to maintain trust and confidence among users.
• Decentralized Finance (DeFi) maturation: DeFi's innovation is expected to mature in 2024, addressing user experience, security, scalability, and interoperability concerns. Improved infrastructure and interoperability will create a robust, user-friendly decentralized financial landscape.
• NFTs beyond art: In 2023, NFTs gained popularity in digital art and collectibles, but their use is expected to expand into real estate, gaming, and intellectual property in 2024, revolutionizing ownership and authenticity verification.

Trends in crypto in 2024 by Xapo Bank:

• Crypto wave: The 2024 Bitcoin halving could spark a market surge, possibly reaching a new all-time high by 2025. The approval of a spot Bitcoin ETF marks a significant shift from digital wallets and derivatives. Standard Chartered Bank predicts Bitcoin will hit $100,000 by the end of 2024.
• Upswing in crypto payments: Anticipated growth in crypto payments in 2024 across various sectors, driven by technological advancements, user-friendly systems, and increased confidence in blockchain security, facilitating integration into daily transactions.
• Metaverse boom: Dubai leads the metaverse charge, aiming to triple blockchain and metaverse companies by 2030. The plan includes creating over 40,000 virtual jobs and attracting tech giants like Microsoft, Apple, and Amazon, solidifying a transformative era.
• Regulatory clarity in the crypto sphere: Anticipated increased regulatory clarity in 2024 to boost investor confidence. Coinbase's legal efforts against the SEC reflect the industry's push for rules. The US may follow Europe's crypto regulations, prioritizing user and investor protection.
• Progress in asset tokenisation: Polygon Labs foresees a rise in real-world asset tokenization in 2024, potentially involving trillions of dollars. Private equity and finance giants may drive the development of tokenized funds, leading to a variety of next-gen tokenized assets. 2024 is poised for significant events in Bitcoin halving, crypto payments, and metaverse growth.

Trends in crypto in 2024 by 101 blockchains:

• Metaverse development: The 2024 crypto bull run anticipates a metaverse market ten times larger than the entire crypto market. Dubai's metaverse strategy, coupled with major companies like Apple and Microsoft launching platforms, will drive growth, but only a few will survive intense competition.
• GameFi: Predictions for the 2024 crypto bull run suggest a focus on GameFi, a metaverse technology sector. Past GameFi projects lacked value, relying on profits and Ponzi schemes. The next bull run expects a shift with major game developers joining, emphasizing detailed tokenomics and immersive graphics for market growth.
• NFTs: The 2024 crypto bull run foresees rising NFT values, driven by their resilience in bear markets. Improvements include added utility, long-term roadmaps, and increased adoption in retail and music industries. New NFT standards, large projects, and the rise of the NFT loan market will contribute to this growth.
• Real-world asset tokenisation: The 2024 crypto bull market will likely fuel the tokenization of real-world assets, with companies experimenting in this space. Although big companies are adapting slowly, projects like Maple Finance and Centrifuge may drive demand as the market matures.
• AI creeps into Web3: The upcoming crypto bull run predicts substantial growth in AI-based projects within Web3, attracting more investments. Identifying relevant projects will be crucial as AI-based ventures become a promising trend in the blockchain and Web3 space.
• DAO: Decentralized Autonomous Organizations (DAOs) are expected to dominate the 2024-2025 crypto bull market. These decentralized management mechanisms offer convenience and precise governance, catering to users seeking new models and potentially experiencing massive growth by the bull run's end.
• DeFi: Decentralized finance (DeFi) will be a focal point in the 2024 crypto bull market, with assets locked in DeFi solutions rivaling deposits in large US banks. Growing liquidity and the emergence of new DeFi solutions, including lending protocols and multichain services, will define the market.
• Mainstream adoption of crypto payments: The upcoming crypto bull run aims to drive widespread adoption of cryptocurrencies in various sectors, from hotels to supermarkets. This trend may extend to airline tickets and general goods, propelled by the crypto market's growth during the bull run.

Trends in crypto in 2024 by TheStreet Crypto:

• Connecting the data: Blockchain and distributed ledger technology will merge for seamless data transfer across different sources. Flare's CEO, Hugo Philion, emphasizes the need for decentralized, low-latency access to off-chain data for machine learning and DeFi applications. Emerging projects demand a scalable, cost-effective, and low-latency solution, driving interest toward platforms with native decentralized data acquisition architecture.
• TradFi and DeFi: The FinTech landscape is rapidly changing, with an estimated 3.6 billion people adopting digital banking by 2024. The convergence of decentralized finance (DeFi) and traditional finance (TradFi) is essential to address global economic challenges. DeFi needs to incorporate regulatory practices from TradFi, while TradFi can leverage blockchain and green funding to showcase the long-term synergy between these financial realms.
• Sustainability, proving green credentials: Regenerative finance (ReFi) gains momentum, exemplified by projects like Energy Web, Celo, and Regen Network, showcasing cryptocurrencies' real-world utility in funding sustainable infrastructure. With EU regulations like the "Corporate Social Responsibility" directive, companies must prove their green credentials. Blockchain platforms like Demia and Biotoken contribute to a sustainable future, leveraging transparency and traceability beyond traditional auditing limits.
• AI Agents infiltrate crypto trading: Artificial intelligence (AI) is reshaping the crypto market, enhancing user engagement, and altering digital asset perceptions. Projects like Ocean Protocol and Cosmos explore AI's efficiencies, while Fetch.ai and The Graph integrate AI and crypto for new use cases. Decentralized blockchains like Flare, designed for openness and decentralization, provide a counterbalance to traditional machine learning centralization. These initiatives pave the way for innovation across diverse sectors.
• Game-Within-Game economies: Online content creators, moving beyond influencers, use technology to create revenue streams and virtual worlds. In 2023, players ventured into Web3 through applications like Sweatcoin and NFL Rivals. Blockchain-based games are expected to dominate the 2024 crypto landscape, according to On Yavin, co-founder at Syndika and managing partner at Cointelligence Fund.

Finishing point

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