Top 10 Crypto Trends for 2024

The past 14 years since the invention of Bitcoin and blockchain have been a rollercoaster, marked by euphoric highs and daunting lows.

Despite the volatility, Bitcoin has grown by 171% each year on average (CAGR) since 2009.

But now, as the ice melts, we're seeing the first signs of spring—a season of growth and blossoming.

In this article, we'll delve into the top 10 trends and events shaping the Wild West of crypto in 2024.

Please note that this analysis is not intended as financial advice, but rather as a compass to help you navigate the turbulent waters of the cryptocurrency market.

ICYMI: Here’s Our Portfolio for 2024

1. The Impact of Bitcoin ETFs: Unlocking New Avenues for Investment

In 2024, Bitcoin Exchange-Traded Funds (ETFs) are emerging as a game-changer. These financial instruments, backed by cryptocurrency, offer investors a new way to gain exposure to Bitcoin without direct ownership.

Bitcoin ETFs attract institutional investors and could reshape the crypto market. They provide a regulated and convenient entry point for traditional investors, potentially increasing demand for Bitcoin.

Key takeaways for investors:

• While BTC and ETH may currently dominate the market, their positions are not unassailable in the long term.

• Consider allocating a portion of your portfolio to Bitcoin ETFs for diversified exposure to the crypto market.

• Analyse how various ETF providers structure their offerings; it can affect your investment strategy.

2. Bitcoin Halving and Mainstream Media Attention 

Bitcoin's periodic "halving" event, which reduces its supply, is set to coincide with the launch of Bitcoin ETFs in 2024, potentially drawing significant media attention.

Mainstream media coverage of Bitcoin's halving could drive public interest and demand for the cryptocurrency, especially amid concerns about real-world inflation.

Key takeaways for investors:

• 100x for BTC in 2024? Unlikely. But it could easily outperform other established asset classes once again in 2024.

• ETH = investing in a company like JP Morgan or Visa.

• BTC = “digital gold” pure play. Bitcoin WILL keep outperforming ETH.

• Monitor media coverage and public sentiment around Bitcoin's halving, as it can influence short-term price movements.

• While media attention is essential, maintain a long-term investment strategy, as Bitcoin's value depends on various factors beyond the hype.

• Be prepared for increased market volatility during periods of heightened attention.

3. Web3 Expanding to the Real World

In 2024, Web3 technology is extending beyond digital realms to the real world. This includes tokenising Real World Assets (RWA), integrating Web2 and Web3 gaming, and expanding decentralised physical infrastructure (DePin).

This expansion bridges the gap between the virtual and physical worlds, opening up diverse investment opportunities and mass adoption potential.

Key takeaways for investors:

• Web3 monetisation will become the dominant business model in gaming.

• Explore investment opportunities in projects focusing on RWA tokenisation, Web3 gaming, and DePin infrastructure.

• Assess projects based on their user-friendliness and potential for mainstream adoption.

• Consider these investments as part of a long-term strategy, as Web3's integration with the real world may take time to mature.

4. Shift from Tech to Business Development in Layer 1 (L1) Blockchains

This trend signifies a shift in focus from emphasising the technical aspects of Layer 1 blockchains to a greater emphasis on real-world applications. It involves diversification into industries like finance, gaming, AI, and consumer applications, with a focus on identifying product-market fit.

This trend is important because it aligns blockchain technology with practical use cases, attracting more investors and stakeholders. It opens opportunities for business and tech consultants to facilitate the integration of blockchain solutions into traditional industries, bridging the gap between Web3 builders and corporate adoption.

Key Takeaways for Investors:

• Focus on L1 blockchains diversifying into industries with real-world applications, as these projects may gain more traction and adoption.

• Look for partnerships and collaborations between L1 blockchains and traditional businesses, as these could indicate promising investment opportunities.

• Stay informed about the technical and business developments of L1 blockchains, as these can impact their long-term viability.

5. Real World Asset (RWA) Tokenisation

RWA tokenisation involves converting real-world assets such as stocks, bonds, and real estate into digital tokens. This trend aims to make these assets more liquid, efficient, and accessible by leveraging blockchain technology.

RWA tokenisation is significant because it has the potential to unlock trillions of dollars in traditionally illiquid assets. It offers efficiency gains and cost savings through faster execution and settlement. However, caution is needed as the market may become overly enthusiastic, and regulatory adaptations are crucial for the concept's successful implementation.

Key Takeaways for Investors:

• Consider diversifying your portfolio by including assets related to RWA tokenisation projects, as this trend has the potential to reshape the investment landscape.

• Be cautious and conduct thorough due diligence, as regulatory changes and market dynamics can affect the success of RWA tokenisation initiatives.

• Stay updated on the progress of RWA tokenisation infrastructure and platforms, as these developments can offer early investment opportunities.

6. Decentralised Physical Infrastructure (DePin)

DePin allows individuals to monetise underutilised hardware resources like storage and processing power. Projects like Filecoin and Akash are leading the way.

DePin offers decentralised alternatives to centralised services and can disrupt traditional cloud computing models.

Key takeaways for investors:

• DePIN (Physical Infrastructure Networks), DeSoc (Social Media), and DeSci (Science) are the narratives to watch.

• Explore investment opportunities in DePin projects, but recognise that this sector is still in its early stages.

• Be patient and view DePin investments as part of a long-term strategy, as building such infrastructure takes time.

• Seek projects with strong technical teams and innovative approaches to DePin.

7. Decentralised Exchanges (DEXs) Outgrowing Centralised Exchanges (CEXs)

DEXs are reshaping cryptocurrency trading with improved user experiences and liquidity, making them increasingly competitive with CEXs.

Recent issues with CEXs have driven users toward DEXs, and this shift is expected to accelerate in 2024.

Key takeaways for investors:

• Consider using DEXs for trading and investing in DEX-related projects.

• Understand the risks associated with DEXs, such as smart contract vulnerabilities.

• Evaluate the liquidity and trading volume of DEXs to ensure efficient trading.

8. Web 3 Gaming 2.0: Play-AND-Earn 

"Play-AND-Earn" games, which combine entertainment with the opportunity for players to earn rewards, are on the rise in 2024. These games leverage digital ownership and in-game economic systems.

This trend offers a unique fusion of entertainment and financial gain, attracting gamers and investors alike. It transforms traditional gaming into a potential source of income.

Key takeaways for investors:

• Explore investment opportunities in "Play-AND-Earn" game projects and blockchain-based gaming platforms.

• Assess the potential for these games to disrupt the gaming industry and their revenue models.

• Consider adding gaming-related investments to your portfolio to tap into this growing sector.

9. Decentralised Social (DeSo) on the Horizon

Decentralised social alternatives (DeSo) are emerging to counter profit-maximising models of current social media platforms. These platforms offer content creators ownership of their work and innovative engagement methods.

DeSo platforms address user frustrations with Web2 platforms and provide a promising solution in the growing Web3 ecosystem.

Key takeaways for investors:

• Keep an eye on DeSo projects and social platforms in the Web3 space.

• Evaluate platforms with strong user adoption and active communities.

• Understand how DeSo platforms monetise content and engage with content creators.

10. AI & Crypto: Money for the Machines

This section explores the relationship between AI and crypto, highlighting how AI's growth can benefit the crypto space.

AI's reliance on crypto solutions for data verification and time-stamping creates potential investment opportunities.

Key takeaways for investors:

• Understand that AI and crypto have a symbiotic relationship, with AI increasing demand for crypto solutions.

• Bitcoin's energy-preserving properties make it a compelling choice for AI transactions.

• Anticipate the growth of AI-driven demand for crypto services.

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Bonus: The Quest for Interoperability

Interoperability remains a crucial challenge in the blockchain space, with individual blockchains acting as isolated islands.

Chainlink's Cross Chain Interoperability Protocol (CCIP) could be a game-changer in this regard, enabling seamless value transfers between blockchains and the real world. If successful, CCIP could revolutionise various industries and business models.

Closing Thoughts

2024 promises to be a transformative year in the investment landscape.

As investors, it's essential to stay informed and adapt to these evolving trends. While opportunities abound, it's equally important to exercise caution, conduct thorough research, and maintain a long-term perspective. Each of these trends represents a piece of the ever-expanding puzzle that is the crypto and blockchain space.

By following these developments closely and considering their implications, investors can position themselves strategically in this dynamic market.