Crypto in 2024: Innovation, adoption, and challenges amid growth, diversity, and impact
The year 2024 is expected to be a pivotal one for the crypto industry, as several factors could influence its growth, adoption, and innovation. From the Bitcoin halving and the launch of spot ETFs, to the rise of stablecoins and tokenized assets, to the regulatory and geopolitical developments, there is a lot to look forward to and prepare for in the next 12 months. But what do the experts say about the crypto trends, risks, and rewards in 2024? We have compiled some of the most insightful predictions and opinions from industry leaders and analysts below.
Bitcoin
New highs, ETFs, and upgrades- Bitcoin, the world’s first and largest cryptocurrency, is likely to continue its upward trajectory in 2024, as it benefits from the supply shock induced by the halving in April, which will reduce the block reward from 6.25 to 3.125 bitcoins per block. According to Bitwise, a crypto asset manager, Bitcoin could surpass US$80,000 in 2024, driven by the increased demand from institutional and retail investors.
Another factor that could boost Bitcoin’s performance and innovation in 2024 is the activation of Taproot, a major upgrade that will improve Bitcoin’s privacy, scalability, and functionality. Taproot will enable more complex and flexible smart contracts, such as multisig, atomic swaps, and Lightning Network channels, on Bitcoin, making it more competitive with other blockchains.
Ethereum
Revenue, NFTs, and scaling- Ethereum, the second-largest cryptocurrency and the leading platform for decentralized applications (DApps), is expected to see its revenue double in 2024, making it one of the fastest-growing tech platforms in history, according to Bitwise. Ethereum’s revenue comes from the fees paid by users to access its network and use its services, such as decentralized finance (DeFi), non-fungible tokens (NFTs), and gaming.
One of the main drivers of Ethereum’s growth in 2024 is the continued popularity and innovation of NFTs, which are unique digital tokens that represent ownership of various forms of digital and physical assets, such as art, music, collectibles, and real estate. NFTs are poised to be a major driver of Web3 adoption in 2024, as they enable new forms of creativity, expression, and monetization for creators and consumers alike.
Another factor that could enhance Ethereum’s performance and user experience in 2024 is the completion of its transition from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism, which will make it more secure, scalable, and energy-efficient. The PoS upgrade, also known as Ethereum 2.0, will also introduce sharding, a technique that splits the network into multiple parallel chains, increasing its capacity.
Stablecoins
Stablecoins, which are cryptocurrencies that are secured to fiat currencies or other assets to maintain a stable value, are expected to play a key role in the global adoption and innovation of crypto in 2024. Stablecoins, such as Tether (USDT), USD Coin (USDC), and Dai (DAI), offer the benefits of crypto, such as speed, transparency, and low cost, without the volatility and risk of traditional cryptocurrencies.
According to Moody’s, a credit rating agency, the volume of transactions via stablecoins will surpass those by Visa, the world’s largest payment network, in 2024, as stablecoins become more widely used for daily finances, cross-border payments, and e-commerce. Stablecoins will also enable more people to access the crypto ecosystem, especially in emerging markets, where financial inclusion and stability are lacking.
However, stablecoins will also face significant regulatory and geopolitical challenges in 2024, as governments and central banks seek to assert their authority and control over the global monetary system. The U.S. Congress is expected to pass legislation that will impose stricter rules and oversight on stablecoin issuers, such as necessitating them to obtain bank charters and hold sufficient reserves. Meanwhile, China and other countries are developing their own central bank digital currencies (CBDCs), which might compete with or even ban stablecoins in their jurisdictions.
Tokenized assets
Tokenized assets, which are digital representations of real-world assets on a blockchain, are expected to see significant growth, diversity, and impact in 2024, as more industries and sectors adopt this technology to improve their efficiency, transparency, and accessibility. Tokenized assets include stocks, bonds, commodities, real estate, art, and more.
According to Cristiano Ventricelli, the CEO of Tokeny Solutions, a tokenization platform, Ethereum will emerge as a key blockchain for tokenized real-world assets in 2024, as it offers the most advanced and mature infrastructure, standards, and ecosystem for this purpose. Ethereum will also benefit from its PoS upgrade, which will make it more scalable and compatible with tokenized assets.
Ventricelli predicts that tokenized assets will see more adoption and innovation in sectors such as real estate, art, and gaming, as well as in emerging markets, where tokenization can unlock new sources of capital and liquidity. He also expects that tokenized assets will have a positive social and environmental impact, as they can enable more inclusion, participation, and sustainability in the global economy.
