The Block Research predicts the development of 2024 in a recent analysis. Analysts make predictions on new trends, narratives, and expectations for the upcoming year, including thoughts on how artificial intelligence will play a role in the crypto space and whether Bitcoin ETF approval will be granted.
Driven by risk appetite, investors generally expect cryptocurrency prices to appreciate in 2024;
Bitcoin ETF approval is expected in the first quarter of 2024;
Bullish narratives include RWA, DePin, and artificial intelligence;
Coinbase performs strongly, facilitating institutional adoption of cryptocurrencies;
Increased adoption of Ethereum-based Rollups through the activation of proto-danksharding/EIP-4844;
The year 2024 will see a revival of the DePIN industry as decentralized computing infrastructure gains practical utility or perceived utility through artificial intelligence. Given the computational, data set, storage, and potential general exchange units required for AI, this rebound may involve many existing players in the DePIN space, as well as fostering the development of new participants.
Coinbase is expected to continue to be the top-performing crypto stock in the public market for several reasons:
– Acting as a custodian for multiple approved ETFs
– Growth in international markets and the launch of relevant exchange products in the US
– Potential advantages in developing L2
Additionally, Circle may IPO, but with the risk of shrinking stablecoin market share and potential profit reduction due to interest rate cuts, its performance may be relatively subdued.
In 2024, we will see the ultimate implementation of modular and integrated approaches. Ethereum will launch proto-danksharding and, together with modular protocols like EigenLayer and Celestia, trigger a wave of application chain rollups. Coinbase is expected to become a $500 billion company. The first Bitcoin ETF will break records for inflows. Ethereum ETF will not be approved.
The theme of 2024 will be the revival of cryptocurrencies and digital assets. The bullish sentiment at the beginning of the year will be driven by expectations of Bitcoin ETF approval, which will ultimately happen in the first quarter. However, the approval itself is more of a “sell the news” event that will not have a sustained positive impact on Bitcoin prices in the short term. Although ETF inflows will be significant, the initial scale will not be substantial.
The entire crypto market capitalization will continue to be driven by macro and liquidity conditions, with everyone’s focus on the Federal Reserve’s actions. The excitement surrounding Solana will wane in early 2024, with Bitcoin dominating the market before the halving. However, after the halving, Bitcoin will lose dominance in the face of widespread alternatives. ETH and L2 tokens will rebound with the support of EIP-4844 implementation. With the market also betting on a comprehensive approach to expanding smart contract platforms, Alt-L1 will also rise.
2024 will be a record year for institutional adoption, as infrastructure matures and new revenue opportunities arise. More crypto-savvy institutions will use application-specific Rollup/chains/subnets to create interoperable environments with public chains, interacting with innovative smart contract hooks and their chosen counterparties. With traditional finance yields potentially declining in the second half of the year, interest in institutional-grade staking products will rekindle, incorporating DeFi elements for transparency and trustlessness.
2024 will also be a record year for smart contract hacks and vulnerabilities. With the deployment of L2 and…