The crypto world is full of exciting possibilities. Assets that seem unlikely can suddenly rise in value. For example, in 2021, Solana (SOL) went up over 10,000%, and Shiba Inu (SHIB) by more than 40,000,000%. This changing market raises a big question: which cryptocurrency will boom next in 2024?
Recently, the crypto market has started to pick up after a slow period. Major cryptocurrencies are showing new strength since the second half of 2023. Many investors are hopeful for the future. They are looking for new cryptocurrencies that can take advantage of AI, dApps, and digital trading trends.
We will now do a deep dive into which coins could see a big rise in 2024. We’ll explore why they might grow, and also look at some established cryptocurrencies. We’ll talk about new blockchain tech and changing regulations, showing how the market is always changing. For smart investors, it’s a world of both opportunity and challenge.
Key Takeaways
- The crypto market experienced unprecedented volatility in 2021, with Solana (SOL) and Shiba Inu (SHIB) seeing remarkable price surges.
- After a bear market, many major cryptocurrencies have rebounded, and investors are cautiously optimistic about the future of the crypto industry.
- The article will explore promising cryptocurrencies that could capitalize on trends in AI, dApps, and digital asset trading, as well as the potential growth of established cryptocurrencies.
- The analysis will consider the factors driving the crypto market, including market demand, regulatory policies, technological advancements, and economic conditions.
- The article aims to provide readers with a comprehensive understanding of the crypto landscape and potential investment opportunities for 2024.
U.S. Recession Arrival and Debut of Spot Bitcoin ETFs
Bitcoin’s Potential Resilience During Recession
The first half of 2024 is when the U.S. economy might see a recession. It’s been slowing down for a while. While gold prices dropped in early phases of past recessions, Bitcoin only had one such event. During that time, it fell by 60% but later recovered sharply when the Fed helped the market.
Anticipated Inflows into Spot Bitcoin ETFs
More than $2.4B might go into new US spot Bitcoin ETFs in the first part of 2024. This is to help keep the Bitcoin value up. Even with big price swings, Bitcoin likely won’t drop below $30k in that period.
Impact on Bitcoin’s Market Valuation
When spot Bitcoin ETFs start in the U.S., it could greatly affect Bitcoin’s market value. Looking at the SPDR Gold Shares (GLD) ETF’s start, it drew in about $310 million, which is like $750 million for Bitcoin. It’s expected that Bitcoin ETFs will see about $1 billion initially and $2.4 billion after a quarter. Over the first two years, it might reach $40.4 billion in investments, according to M2 ratios.
Uneventful Fourth Bitcoin Halving
In April 2024, the Bitcoin halving will not face severe issues like forks or missed blocks. The reduction in new coin issuance will force unprofitable miners to leave. This will benefit those who mine at a lower cost.
The market won’t be too shook up, though. Listed miners are doing well financially. They control about 25% of the global hash rate. This makes their situation stable even after the halving.
Minimal Disruption to Bitcoin Network
Post-halving in April, there might be a few weeks of adjustment. The market will likely face more pressure to sell off, driving Bitcoin’s value down. However, we predict Bitcoin will grow to over $48k from just under it. This is based on its pattern in April 2022.
Before the halving, Bitcoin miners will be less successful than the coin itself. However, low-cost miners like CLSK and RIOT might perform better. We anticipate at least one listed miner increasing in value by 10 times before 2024 ends.
Consolidation of Mining Power
With the fourth halving, miner’s rewards will decrease from 6.25 BTC to 3.125 BTC. This change will favor the most efficient miners. The phenomenon of more power in fewer hands is common after each halving.
The mining scene will become less scattered. As blockchain technology advances, the Bitcoin network will get stronger. This is good for the new wave of institutional crypto adoption we expect in 2024 and onward.
Bitcoin’s All-Time High in Q4 of 2024
In the second half of 2024, Bitcoin is expected to rise. It will face many challenges along the way. But the look is up, with more people voting and pushing for change. As the narrative changes, the Green lobby may lose some power. This change could happen after a tough election. Donald Trump might win again, promising to ease up on tough rules. If this happens, Bitcoin could hit a record high on November 9th.
Wall of Worry: High Voter Turnout and Regulatory Shifts
2024 should see more people than ever voting. This signals big changes ahead. But, there’s a shift in how we view growth and change. It might lead to a friendlier approach from the SEC towards Bitcoin.
Potential for Satoshi Nakamoto Recognition
Many predict Bitcoin will soar on November 9th, 2024. Some say this could be the moment we finally know who made Bitcoin. This could spark even more interest in Bitcoin. And keep it as the top choice in the crypto world.
Ethereum’s Market Position Behind Bitcoin in 2024
In 2024, Ethereum (ETH) will stay strong but won’t beat out Bitcoin (BTC). Bitcoin wins because it’s more accepted and uses less energy to work. This makes it appealing to countries in places like Latin America, the Middle East, and Asia. Argentina is looking to follow countries like El Salvador and mine Bitcoin using its natural gas.
Bitcoin will be the first choice for many in the cryptocurrency market. People will invest in it heavily when its halving event happens. This boost in Bitcoin‘s value will then flow into smaller cryptocurrencies. Although Ethereum might do well and shine brighter than Bitcoin for a moment, it won’t overtake it. In 2024, Ethereum could lose a bit of its spot to other platforms that seem more sure about their future growth, like Solana.
Dominance of ETH Layer 2s Post-EIP-4844
In 2024, Ethereum’s growth is expected, with Layer 2 solutions leading the way. The release of EIP-4844 marks a big step forward for Ethereum. This change will make Ethereum’s branches scale better, especially in the area of decentralized finance (defi).
Scalability Solutions for Ethereum
Ethereum can currently process about 19.2 USDC or 6.8 Uniswap trades in a second. This isn’t enough, so the Ethereum community is looking into Layer 2 scaling. They’re trying out optimistic and zero-knowledge roll-ups. These solutions help by grouping transactions together. This improves Ethereum’s speed, letting it handle more transactions each second.
Adoption of Layer 2 Protocols
Layer 2 protocols are going to be big in 2024, mainly because Ethereum is growing fast. Right now, there are many Layer 2 options, but some are clearly doing better. Arbitrum is in the lead, with $4.31 billion locked up in their system. But, out of forty-six tracked, only four have live fraud protection. This shows that not all Layer 2s are equally safe yet.
Arbitrum, Blast, and other ORUs, along with Starkware and zkSync ZKUs, are key players. They all use ETH for transaction fees. This is because ETH is essential for any transaction going back to Ethereum. So, Ethereum remains central in 2024’s crypto growth because of this.
NFT Activity Peaks to New Heights
The forecast for the 2024 crypto market shows big growth for the NFT sector. People are more interested in digital items and NFTs are becoming widely accepted. This trend is expected to bring a lot of new activity to the NFT world.
Growing Interest in Digital Collectibles
The metaverse and web3 tech are increasing the want for one-of-a-kind digital items. People are seeing the value in NFTs, which let you own unique digital stuff like artwork and virtual spaces. More interest means more NFTs will be traded and new projects will start in the NFT space.
Mainstream Adoption of NFTs
DeFi is growing, and NFTs are becoming part of many apps and services. Mainstream media is starting to use NFTs too. This will make NFTs more popular and a key part of the growing web3 world.
Binance Relinquishes Top Position in Spot Trading
In 2024, big changes are hitting the centralized exchange world. Binance, a major player, has lost its top spot in trading. This shows a shift towards decentralized finance and more rules for exchanges. The crypto market forecast predicts a new era is dawning.
Decentralized Exchange (DEX) Growth
The rise of decentralized exchanges (DEXs) is clear. They are winning over more traders. Platforms like THORChain, since 2018, now see trades hit $1 billion weekly. People are looking at emerging crypto projects 2024 and promising altcoins for better control and transparency with their money.
Regulatory Pressures on Centralized Exchanges
Binance’s fall from the top is linked to more rules and checks on centralized exchanges. Now, investors prefer the decentralized way. They’re choosing it to keep their money safer from the risks centralized platforms pose. This trend is in line with more institutional crypto adoption. More groups and people want direct control over their digital funds.
| Metric | 2023 | 2024 (Forecast) |
|---|---|---|
| Binance Spot Trading Market Share | 32% | 27% |
| DEX Spot Trading Market Share | 18% | 23% |
| USDC Market Share | 25% | 30% |
The 2024 crypto market forecast looks really promising for stablecoins. The total market cap is expected to hit all-time highs. This is mainly because people are looking for cryptocurrencies that stay at a fixed price. They’re needed for things like trading, lending, and other apps in the decentralized finance world.
Increasing Demand for Stablecoins
By May 2024, the market cap for stablecoins reached $161 billion. This was a 0.63% growth from the start of the month. It shows how important stablecoins are becoming in the crypto world and in decentralized finance.
USDC’s Resurgence After Regulatory Challenges
Circle’s USDC is making a big comeback. In May, its market cap hit $32.6 billion. This success comes after USDC faced some tough regulations in 2023. It shows how strong USDC is and how much more institutions are using crypto.
| Stablecoin | Market Cap (May 2024) | Market Share | Monthly Change |
|---|---|---|---|
| Tether (USDT) | $111 billion | 69.3% | -0.07% |
| USDC | $32.6 billion | 8.27% | +2.07% |
| Athena USDe | $2.61 billion | N/A | +11.6% |
| BlackRock’s BUIDL | $448 million | N/A | +19.6% |
The stablecoin market is getting better after issues in 2023. There was a hard time because of the Terra Luna ecosystem’s collapse and de-pegging of TerraClassicUSD. But, the market is now moving towards growth. This is thanks to the increased need for stable cryptocurrencies and strong players like USDC.
But, the stablecoin market still faces some problems. New rules, like the MiCA regulations in Europe, are causing worries. This could lead to USDT pairs maybe being taken off platforms. Central Bank Digital Currencies are also starting to appear. But, the response has been mixed, like with the e-Naira in Nigeria.
Decentralize
In the world of cryptocurrency, decentralization is becoming key. It’s catching the eye of many who invest and create. The growth of decentralized finance (DeFi) and the use of decentralized apps (dApps) show how blockchain is powerful. It challenges old financial ways and gives users more power.
In 2024, decentralization will grow even more. Projects like Polkadot and Cosmos will help different blockchains work together. Letting people easily move money and data is vital for these new solutions.
Decentralized exchanges (DEXs), such as THORChain, along with stablecoins like USDC, are getting popular. They show that people want more control and clarity in their money dealings. They are also becoming more popular than central exchanges because they offer user-controlled and clear ways to handle money.
This push for decentralization in the crypto world mirrors a bigger movement. People and communities are after more independence, safety, and honesty when dealing with money and tech. This trend will likely bring new ways to handle money. These new ways will change how things are done, putting more power in the users’ hands.