Crypto 2024: 12 theses for 12 months

As the year draws to a close, it’s that time again — a moment to reflect on the trends that will shape the blockchain landscape of 2024.

2023 has undeniably been a bullish year for cryptocurrencies, and the signs are auspicious that the next year might surpass even those heights. With the Bitcoin halving on the horizon, a historic catalyst for market upswings, and emerging trends rekindling user interest in blockchain technology, the stage is set for another dynamic year.

Join us as we delve into the most promising avenues that lie ahead!

1. Bitcoin ETF Approval

The approval of Bitcoin ETFs represents a major leap forward in the mainstream acceptance and institutional adoption of cryptocurrency. This move will not only legitimize Bitcoin as an investment vehicle but also pave the way for increased liquidity and stability in the market. In 2024, when the first ETF for gold was approved, the uptrend in demand both from traditional investors and ETF investors contributed to a boost in gold prices. And we all know that history often repeats itself. To be noted: in the case the ETF was not approved in 1Q24, there’s a risk of inversion of the current trends and the Industry could deviate from its current trajectory for several months.

2. Privacy-Preserving Smart Contracts on Ethereum (PPSCE) and Privacy first

Ethereum will introduce a groundbreaking upgrade enabling privacy-preserving smart contracts. This innovation, rooted in zero-knowledge proofs, will revolutionize industries requiring confidentiality, such as healthcare and finance, unleashing a wave of new use cases on the Ethereum network. The emergence of privacy-first protocols, underpinned by zk-proofs and SNARKS, is set to redefine privacy standards in the Web3 world. This shift towards privacy-centric approaches will add one more lego piece to the data security fight.

3. Stablecoin Basket Renaissance

Stablecoins remain one of the most exciting and anticipated developments in crypto, and the sector is set to see new and innovative models appearing and gaining traction in 2024. The new models could offer a groundbreaking blend of stability mechanisms and collateralization through a diversified asset pool, and decentralized governance. With the innovative approach, there could be significant disruptions within the stablecoin ecosystem as more people would move from the traditional variants of USDT and USDC to other stablecoin frameworks offering enhanced privacy and security features. This evolution in stablecoins could significantly increase interest in digital assets and open the door to a range of new financial applications and use cases.

4. The Rise of Decentralized Cloud Computing

The coming year is poised to witness a significant shift in the cloud computing landscape, as decentralized platforms gain prominence. This trend, fueled by advancements in blockchain technology, is set to disrupt the traditional dominance of centralized cloud providers. In 2024, we anticipate a major movement towards decentralized cloud ecosystems. These platforms, leveraging the power of blockchain, are expected to offer innovative solutions for a range of applications, from AI and machine learning to the hosting of decentralized applications.

5. A new Wave of AI Projects

The integration of AI into the blockchain had mixed results so far. Building on the foundations of platforms like ChatGPT and leveraging open-source AI models might allow developers to offer more sophisticated and intelligent solutions within the Web3 space than what we’ve seen so far. New players will revamp the vertical and connect AI and the blockchain in more powerful ways.

6. Radical innovation on self custody and new generation of wallets

The blockchain user experience is set for a significant overhaul, focusing on simplicity and accessibility. Innovations like account abstraction and passkeys are at the forefront, aiming to streamline interactions and reduce the technical barriers for users. With the implementation of these technologies, users will be able to create wallets quickly and efficiently, making blockchain more user-friendly, which is vital to bringing the space to the next level. Wallets as we know them will soon become a thing of the past.

7. Omnichain Fungible Tokens

Omnichain protocols are set to revolutionize the blockchain landscape. This innovation will facilitate seamless interconnectivity between different blockchains, allowing for more fluid and efficient cross-chain interactions — no more bridges, no more wrapped tokens. Chain-agnostic DeFi powered by omnichain liquidity? Yes, please.

8. Cross-chain NFT Metaverse 3.0

NFTs are expected to evolve beyond mere collectibles, incorporating real utility and functionality. They will play a crucial role in certifying blockchain activities and verifying user identities, thereby offering targeted benefits and enhancing the overall user experience. We don’t need more digital art — we need NFTs as integral components of the Web3 dapps. This interoperability will unlock new possibilities for creativity, collaboration, and value exchange in the digital realm.

9. Ethereum Restaking

The adoption of Ethereum restaking (see Eigenlayer) will likely gain traction, though it may spark debates around staking centralization and associated risks. This mirrors the situation with Lido’s dominance in the LSDFi market. Despite these challenges, Ethereum restaking could lead to more efficient network operations and enhanced security, albeit with a need for careful management to avoid slashing.

10. Growth of the Bitcoin Ecosystem

The Bitcoin ecosystem is poised for expansion with an increasing number of protocols and decentralized applications (dApps) utilizing Bitcoin in its native form. Many developers have been seeking to add utility to Bitcoin for a long time — hopefully 2024 will be the year Bitcoin shifts from being purely a store of value to a more versatile and functional asset in the crypto space.

11. Ethereum outperforming

Ethereum revenue will more than double to $5 billion as users flock to crypto applications. We expect ETH to outperform BTC in the latter part of the year. The potential approval of a Bitcoin ETF, and subsequent discussions about an ETH ETF, could further increase Ethereum’s promising prospects on top of the “sound-money” narrative. Currently in a deflationary state, Ethereum is poised to benefit from the anticipated release of EIP-4844 in 2024, an upgrade that promises to enhance its appeal by significantly reducing Layer 2 costs and increasing scalability. Such developments could signal a new era for Ethereum, emphasizing its potential to lead in the blockchain landscape of 2024.

12. The Shift in Crypto Trading Towards Decentralized Solutions

The cryptocurrency market, since its inception, has been a blend of centralized and decentralized platforms, with CEXs initially dominating due to their user-friendly interfaces and robust infrastructure. However, the rise of decentralized finance (DeFi) has heralded a new era in crypto trading. Decentralized solutions offer key advantages such as enhanced security, reduced risk of censorship, and greater user control over assets, addressing many concerns associated with CEXs like security breaches and regulatory scrutiny. The prediction for 2024 sees a culmination of current trends: increasing regulatory pressures on CEXs, growing technological advancements in DEX platforms, and a shift in trader preferences towards more autonomous and secure trading environments.