As the Bitcoin halving approaches and people anticipate SEC approval for spot Bitcoin ETF applications, many expect Bitcoin to cross the coveted $100K mark.
But what about the rest of the market? Here are the most important cryptocurrency predictions for 2024.
DeFi will catch its second wind in 2024
2024 could be the year that DeFi makes a comeback although its performance saw a slow burn at the beginning of 2023.
This optimism comes from the performance of several DeFi projects that are slowly gaining momentum.
For example, optimism saw a 321% year-over-year increase, most of which occurred in December 2023.
“We see 2024 as the year where DeFi projects drive legitimate traction for DeFi and establish the beginning of long-term mainstream adoption.”Julian Deschler, CEO of Web 3 Protocol Elusive, told CoinTelegraph.
Binance will not be the leading exchange in 2024
“Binance will lose the top spot in spot trading to competitors like OKX, Bybit, Coinbase and Bitget,” the official channel of investment firm VanEck tweeted.
While the collapse of FTX allowed Binance to consolidate its size in the cryptocurrency market, the leading cryptocurrency exchange is now in a fragile position with the departure of Changpeng Zhao.
However, as reported by Bloomberg, Binance's trading volume has been declining since September 2023. Furthermore, OxScope recently reported that Binance's share of the spot trading market has declined by 40%.
US banks will give a chance to token payments
With institutions like JPMorgan rolling out token payments on enterprise apps, many cryptocurrency enthusiasts say more US banks will adopt them.
With token payments, the process will accelerate, allowing TradFi banks to be more efficient and diversified.
In a research report titled “Beyond Crypto: Tokenization,” Bank of America predicts that tokenization of traditional assets may reshape banking infrastructure in public and private markets over the next five to 15 years.
The performance of Metaverse tokens will get back on track again in 2024. CoinMarketCap shows that tokens like Gala surged as much as 189% in December. While many quickly chalk this up to a last-minute buying frenzy, experts say the Metaverse will be back.
Organizations will balance the enormous potential with emerging challenges in XR, according to Alex Howland, president of Virbela. The founder also believes that artificial intelligence will drive alien creation, making decentralized virtual worlds more feasible than before.
Conclusion
2024 could be the year when cryptocurrencies finally enter the hot zone after languishing in the market winter for so long. However, whether these expectations come true or not will depend on what happens during the first quarter of 2024.
