With Bitcoin halving coming up and people anticipating the SEC’s approval of the spot Bitcoin ETF applications, many are predicting that Bitcoin will surpass the coveted $100k mark.
But what about the rest of the market? Here are the top crypto predictions of 2024.
DeFi to Catch a Second Wind in 2024
2024 may be the year that DeFi makes a comeback despite its performance witnessing a slow burn at the beginning of 2023.
This optimism comes from the performance of multiple DeFi projects that are slowly catching steam.
Optimism, for instance, has had a yearly increase of 321%, the majority of which happened in December 2023.
“We see 2024 as the year where DeFi projects catalyze legitimate traction for DeFi and establish the start of a long-term mainstream adoption”, Web 3 Protocol Elusive’s CEO Julian Deschler told CoinTelegraph.
Binance Won’t be the Leading Exchange in 2024
“Binance will lose the #1 position for spot trading to competitors like OKX, Bybit, Coinbase, and Bitget”, tweeted the official channel of investment firm VanEck.
While the FTX’s collapse allowed Binance to bolster its size in the cryptocurrency market, the leading cryptocurrency exchange is now on shaky ground with the departure of Changpeng Zhao.
However, as reported by Bloomberg, Binance’s trading volume has been falling since September 2023. Furthermore, OxScope has recently reported that Binance’s spot trading market share has tanked by 40%.
US Banks Will Give Tokenized Payments a Shot
With institutions like JPMorgan rolling out tokenized payments on enterprise applications, multiple crypto enthusiasts say that more US banks will adopt it.
With tokenized payments, the process will accelerate, allowing TradFi banks to be more efficient and versatile.
In one research report titled, Beyond Crypto: Tokenization, Bank of America has predicted that the tokenization of traditional assets may reshape banking infrastructure in public and private markets over the next 5 to 15 years.
Metaverse Will Make a Comeback
Metaverse tokens’ performance will get back on track again in 2024. CoinMarketCap shows that tokens like Gala have risen as much as 189% in December. While many quickly chalk it up to the last-minute buying frenzy, experts say that Metaverse will come to a comeback.
Organizations will be balancing immense potential and emerging challenges in XR, according to Alex Howland, President of Virbela. The founder also believes that AI will propel metaverse creation, making decentralized virtual worlds more feasible than before.
2024 could be the year that crypto finally ventures into the hot zone after shivering in the market’s winter for so long. However, whether or not these predictions materialize will depend on what happens during the first quarter of 2024.