cryptocurrency

Top Crypto Predictions of 2024

In the world of cryptocurrency – as everybody knows by now, and for better or worse – few things are more guaranteed than death taxes. Now, as we pivot to 2024 – what this future state looks like and the way that a number of trends shh – ah hem…shape these predictions is even more important. The following article explores the main crypto predictions for 2021, from Bitcoin dominance and Ethereum growth to NFT rehab, regulatory strides and beyond.

Continued Supremacy of Bitcoin with BoDocumented e Histy

The first of these is the original cryptocurrency, Bitcoin: poised to continue ruling from 2024. One of the most important dates that are worth considering Bitcoin in 2020 is about to do it each spring period somewhere on April – halving, when instead of 6.25 BTC will be received only three and a fraction as reduced block reward which would deprecate amount further by years with additional dimensionsescalation costs. Halvings have historically resulted in significant price jumps because they decrease the number of new bitcoins being released into circulation. VanEck suggests that the Bitcoin price may rise to more than $ 48,000 by the end of this year​ (source: CoinMarketCap)

Also, the expected launch and approval of Bitcoin spot ETFs in the US will very likely increase all-round institutional interest and investment into Bitcoin. These ETFs could help investors to indirectly own Bitcoin, by making it accessible – simply and more attractive as an asset class.

The Emergence of Layer 2 Solutions for Ethereum

One of the most constantly developing and improving cryptocurrencies, Ethereum is ranked 2nd in terms of blockchain market capitalization. This would give solutions like Polygon, Arbitrum and Optimism another leg up as layer 2 on Ethereum in 2024. This solves the problem of Ethereum’s limited transaction throughput by processing transactions away from the main Ethereum network, leading to lower fees and higher speeds​ (CoinMarketCap)​.

There is hope, however; Ethereum has a roadmap for improvement with some key upgrades such as EIP-4844 (proto-danksharding) that improves scalability. This upgrade is expected to bring better performance and confirm Ethereum’s top spot as the leading smart contract platform by solidifying its Layer-2 networks.

NFT Market Resurgence

In 2021, Non-Fungible Tokens (NFTs) grew like mushrooms and the correction of its market also happened. We have heard 2024 will be the NFT market upturn. NFTs are being adopted in new ways such as integration with gaming, virtual real estate and digital art. NFTs based on Bitcoin are also picking up, adding even more diversity to the market​ (CoinDesk)​.

NFTs are receiving coverage by major brands and artists, which is leading to more widespread media attention and adoption. The increased popularity of NFTs is expected to lead this explosive growth in trading volume and the global market capitalization of existing tokens.

REGULATORY HIGHLIGHTS; COMPLIANCE

Cryptocurrency industry crackdowns are also mounting around the world. The Securities and Exchange Commission (SEC) in the US has begun bringing enforcement actions against leading cryptocurrency exchanges, including Coinbase & Binance. These illustrate the necessity of more clarity in regulatory frameworks (Exploding Topics)

Regulatory clarity will still help to give the crypto markets more legitimacy and stability, amidst all these challenges. The challenge lies in striking the balance between a country’s need to safeguard consumers and its financial systems, while at the same time encouraging innovation. These will be more dialogues in 2024 and we could see some progress coming, as well regarding the crypto regulations which for institutional partcipation on a bigger scale to enter mainstream adoption.

Enterpise Cryptocurrency Implementation

As companies continue to gain more experience with blockchain technology in diverse applications, corporate adoption of cryptocurrencies appears also on the rise. This could involve using cryptocurrencies for transactions, or taking advantage of blockchain technology to better manage supply chains. Also leading us towards another step in the right direction are some corporations who can now include their crypto assets on a balance sheet due to new accounting treatments (think FASB reporting) ​(CoinMarketCap).

2024 will probably see this trend carry on, with an increasing number of companies incorporating cryptocurrencies into their activities. Corporate adoption will directly increase the liquidity and price stability of Crypto, rendering it more attractive for Institutional Investors to own.

Blockchain Interoperability

The more blockchain networks that exist increases the necessity for various blockchains to be interoperable with one another. Projects like Polkadot, Cosmos, and Wormhole are at the forefront when it comes to creating mechanisms that facilitate easy communication among different blockchain platforms​ (Exploding Topics) ​

High levels of security help prevent the manipulation or hacking of contracts once released, while interoperability provides more overall functionality and scalability to the existing blockchain ecosystem which allows assets and data between networks. The internationalisation of the futures makes for a significantly mature and widely accessible market which is vital to evolving crypto.

Driving Change for the Environment and Sustainable Solutions

Environmental concerns has made it less appealing to use cryptocurrency, especially with Bitcoin and its power hungry proof-of-work algorithm. Mining generally requiring significant amounts of energy has also been criticized for being environmentally unfriendly, as an agreeable-term request more sustainable iterations. In response, the industry is researching alternatives that are more efficient such as Proof-of-stake (PoS) consensus mechanisms​(Exploding Topics)

Secondly, there is a growing trend to use renewable energy sources in mining operations. And organizations and initiatives ranging from carbon offsetting to more green-friendly companies like the PlanetBlue project are stepping up their efforts to counteract this growing environmental impact. Sustainability will be a major play in 2024, making most of the crypto economies innovate and adopt green practices.

Overall, 2024 is surely going to be a gripping year in the cryptocurrency market with several moves across multiple dimensions. Bitcoin’s importance and this years halving, the growth of ethereum via Layer 2 solutions to increase network capacity for something like DeFi or any other application that requires very fast transactions at low cost. NFTs are going on an unprecedented surge again so keep a good eye out if you haven’t gotten involved just yet! There is a bunch more stuff happening next year(Bitcoin ETF final approval possibilitles in Q1 anyone?) but I am looking forward ti these big trends as well (based on my own anecdotal experiences too). The future of the industry will be as well shaped by regulatory developments, corporate adoption and blockchain interoperability while a focus on sustainability underpins these trends.

For investors, developers and crypto enthusiasts alike knowing these trends can be of paramount importance when trying to keep up with the ever-changing phenomenon that is cryptocurrency. These predictions seem to indicate a bullish market opportunity – and also show the potential of what is still possible in terms of growth, change and adoption with cryptocurrencies as the category continues its move towards mainstream use.