What's in store for 2024? 5 Web3 Predictions for the Year

A very happy New Year to you all, dear readers!

I hope that this year brings us everything we wish for—health, wealth, happiness, contentment, and stability. The last 12 months have been rife with challenges and growth for us, and I’m sure for you as well. Let’s look at 2024 as a year that’s all about rewarding perseverance and hard work.

Perseverance, by definition, is the bedrock of Web3, and by connection, all that we do at Kreatorverse. It is ‘the ability to continue trying to achieve something despite obstacles, failure, or opposition.’ Since the decentralized web took shape and form, it has been the subject of numerous challenges, as have firms—across domains and industries—operating in this space. Yet, it has not only survived but thrived, and it will continue to transcend mere existence. It will transform how we do things, how businesses operate, and how we, as empowered people, will live.

On that note, here are my predictions for Web3 for 2024 – the stage for all that perseverance stands for. ??

1. The Year of Bitcoin

I believe that Bitcoin as an asset class will see greater and wider adoption by both institutions and retail players. The cryptocurrency’s price might even cross USD 70K, hitting an all-time high by the end of this year.

• The BTC halving in April 2024—an event which will reduce Bitcoin's issuance—may boost the price significantly and will proceed without much fuss.

• The anticipation for spot Bitcoin ETF approval by the Securities and Exchange Commission has been building throughout 2023, with Bitcoin's price rising over 160% year-to-date as of December 21, 2023. According to Bloomberg Intelligence, there’s a 90% chance the SEC will approve by January 10, 2024.

2. The Rise of CBDC Projects

As of October 2023, 110* countries and currency unions are actively exploring CBDC projects at various stages –research, development, pilot, and launch. The Central Bank Digital Currency projects of BRICS countries will see acceleration, and be rolled out through the banking systems for adoption by citizens.

• Post a closed pilot program with financial institutions in 2023, the Central Bank of Brazil president Roberto Campos Neto aims to launch a CBDC in 2024.?
• China’s pilot tested over 200 scenarios, including public transit, stimulus payments and e-commerce. China included e-CNY in their currency circulation calculations. The e-CNY represented 0.13% of cash and reserves held by the central bank.
• Last year, Reliance Retail, India’s largest retail chain, started accepting digital rupee payments in stores during the pilot. In March, India commenced offline CBDC functionality testing.

*(130 countries including inactive, cancelled and others)

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3. Financial Asset Management ?? Regulators

In 2024, expect to witness significant collaboration between financial asset management companies and regulators across different jurisdictions. This collaboration is aimed at framing market-friendly regulations that foster innovation while ensuring stability and user protection.

• Increasing institutional investment in digital assets, particularly in the Web3 space, will bring more legitimacy and liquidity to the market. Financial asset management firms will play a significant role here.
• There is a growing global recognition of the need for early development of regulatory frameworks for Web3 assets. These frameworks require fast-tracking, a sentiment echoed at the Dubai FinTech Summit.
• Crypto-natives, traditional financial institutions, and regulators are coming together to navigate the risks inherent in the Web3 ecosystem. This collaboration aims to establish the necessary guardrails to stabilize the ecosystem without stifling innovation, realizing the potential benefits for all ecosystem participants.
• Central banks are expected to continue playing a key role in enabling a more resilient financial system, including research and collaboration on CBDCs, investments in core infrastructure like DLT-based settlement rails, and supporting the large-scale adoption of CBDC use cases.

4. DApp Developers, Rejoice!

The dApp development activity in the Ethereum ecosystem will return to 2021 numbers, thanks to several contributing factors. Fortune 100 companies will launch their DApps this year, built on L1 and L2 Ethereum networks.

• The implementation of the Ethereum Improvement Proposal or EIP-4884 (also known as Proto-danksharding), will make Ethereum’s Layer 2 networks like Polygon and Arbitrum frontrunners in Total Value Locked (TVL) and transaction volume. This will significantly enhance Ethereum's scalability and efficiency, making it more appealing for dApp users and developers.
• A significant update to the Ethereum network is anticipated, which will drastically lower gas fees. This update may bring the average transaction fees down to under $0.01, enhancing Ethereum's competitiveness and making it more attractive for dApp development and usage.

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5. The Era of True Interoperability

While traditionally, interoperability rests within and between Web3 platforms—where different blockchains can communicate, work together, and more—true interoperability takes place between Web2 and Web3 as well.

When siloed, Web2 and Web3 prevent each other from growing; they add resistance to acceptance when they operate independently. Connectivity between the two—or cross-communication—will be important this year. Companies will strategically integrate Web 3.0's decentralized, user-centric features into their existing Web 2.0 frameworks; they can then expect to see not only an expansion in their user base but also an increase in user retention and satisfaction.

As we close this edition, I'd like to leave you with a thought. The journey towards a unified digital future, bridging Web2 and Web3, is not just a technological leap; it's a leap of faith. It's about believing in the potential of a decentralized, interconnected world where innovation, security, and user empowerment converge. At Kreatorverse Venture Studio , we're not just observing these changes; we're at the forefront, shaping them. Our commitment in 2024 and beyond is to you – our community, our partners, our clients. Together, we're not just building platforms, we're building dreams, one block(chain) at a time.

Here's to a year of breaking barriers, forging new alliances, and reimagining what's possible. Let's make 2024 a year of unprecedented growth, inclusivity, and success in the Web3 space. Thank you for joining us on this remarkable journey.