YEREVAN (CoinChapter.com) — As 2023 ends positively, investors hope the crypto market will have more bull runs in store as the calendar turns. Based on current trajectories and expert opinions, we can identify eight crypto trends that could dominate the crypto landscape in 2024. However, many unexpected events can occur, which may impact the industry positively and negatively.
1. Possible US Recession in 2024
Talks of recession in the US Economy are not new. At the beginning of 2023, thanks to the Federal Reserve’s continuous interest rate hikes since early 2022 (11 by February), several economists predicted an economic decline would be unavoidable. That did not come to pass.
Now, most expect the US economy to make a soft landing in 2024. However, despite the positive signs, the Fed does not rule out that there still could be a recession.
Last week, following the Federal Open Market Committee (FOMC) meeting, Chairman Jerome Powell warned that the danger may not be over.
“There’s always a probability that there will be a recession in the next year and it’s a meaningful probability no matter what the economy’s doing,”
he said.
Powell isn’t the only one. Economists at PNC bank, in their Dec. 14 report, also made similar forecasts.
“PNC expects a decline in consumer spending in the second half of 2024 as the U.S. economy enters into a mild recession. High interest rates and modest job losses will cause households to turn more cautious. However, there’s still about a 45% probability that the U.S. economy avoids recession and consumer spending growth slows, but does not outright decline,”
the report read.
Even the possibility of a recession in 2024 could drive investors to opt for cryptocurrencies as a hedge, driving prices up.
2. Spot Bitcoin ETF could get approval from the SEC
In what is certain to be one of the most important crypto trends in 2024, the US Securities and Exchange Commission (SEC) will likely approve a spot Bitcoin Exchange Traded Fund (ETF).
The expectations come as several financial giants join the fray in seeking approval. There are at least a dozen applications currently pending with the SEC. Experts have already suggested a 90% chance of some of these getting approval early next year.
The SEC declared in September that a possible rule change to allow spot Bitcoin ETF could come by January next year.
“The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change, as modified by Amendment No. 3, and the issues raised therein. Accordingly, the Commission… designates January 10, 2024, as the date by which the Commission shall either approve or disapprove the proposed rule change,”
the commission said.
3. Bitcoin’s New Highs to Dominate Crypto Trends in 2024
The recent Bitcoin (BTC) rally saw the leading cryptocurrency cross the $40,000 mark for the first time since April 2022. At the time of writing, it exchanges hands at around $43,000.
Bitcoin reached an all-time high (ATH) above the $68,000 mark on Nov. 10, 2021. However, with the Bitcoin halving event due in April next year, experts predict a new ATH could come in the fourth quarter of 2024 amid growing investor confidence.
4. NFT Bounce Back
According to recent predictions from VanEck, monthly NFT volumes will approach an all-time high. Such expectations come amid speculations that investors will return to cryptocurrencies next year, which will also impact NFT adoption.
According to the firm, improved crypto games and new Bitcoin-based offerings, along with other players in the sector, will help NFTs return.
Through blockchain integration with real-world applications, the Real-World Impact of Tokenization and NFTs is another development that could be bullish for the crypto industry next year.
5. Rise of GameFi Among Crypto Trends in 2024
Along with nonfungible tokens, experts anticipate blockchain gaming, or Game-Fi will make a strong comeback. Games like Axie Infinity, Sandbox, Alien Worlds, etc. indicate the sector’s potential for growth and innovation.
According to reports, the blockchain gaming industry will surge in 2024. At least one GameFi player is expected to surpass 1 million daily active users, a significant milestone for the sector.
According to DappRadar, blockchain games reached a milestone with 1.2 million daily unique active wallets (dUAW) in November. This marked a 14% increase from the previous month. Currently, the sector accounts for about 34% of the entire Web3 domain.
This surge in the GameFi sector, along with growing interest in GamleFi, is one of the bullish crypto trends for 2024.
6. Ethereum’s Position and Layer 2 Dominance
Ethereum (ETH), the second-largest cryptocurrency by market cap, will retain its strong position in the market. Currently priced at around $2,200, it continues to trail just behind Bitcoin. It trades 55% below its all-time high of nearly $4,900 from Nov. 16, 2021.
With the EIP-4844 upgrade scheduled for next year, Ethereum’s Layer 2 solutions will also dominate the industry next year. Moreover, the network’s transaction costs (gas fees) will get slashed significantly, which can be bullish for the industry.
7. Crypto Regulations and Courtroom Drama
Speculations for a spot Bitcoin ETF approval have already made headlines. However, that will not be the only decision from regulators. Fresh dictates from Governments and regulatory authorities will dominate crypto trends in 2024.
Over the past months, there has been a raging debate among both lawmakers and legal experts about crypto regulations. The US Congress has demanded clear directives from SEC Chain Gary Gensler for the industry. Elected representatives have emphasized the need for the sector to be regulated and accepted.
Meanwhile, others, like Senator Elizabeth Warren, have declared an all-out war against the crypto sector.
Amid the growing demands from the industry and various lobby groups, 2024 could bring some regulatory clarity globally.
Moreover, the drama will not remain out of court. FTX founder Sam Bankman-Fried was found guilty earlier this year after a month-long trial. His sentencing will come in March 2024.
Moreover, Binance founder Changpeng Zhao pleaded guilty to violating US Anti-Money Laundering (AML). He resigned and faces a sentencing in February next year.
Terraform Labs founder Do Kwon, arrested in Montenegro last year, could also face extradition to the United States. His trial and possible sentencing for his involvement in crashing the crypto markets will also be developed to watch in 2024. He has been allowed to stay in the country until February.
8. Altcoin and Meme Token Surge Among Crypto Trends in 2024
While most investors will have their eyes set on the Bitcoin rally next year, the altcoins may prove to be most profitable. Experts believe small and micro-cap coins will gain more attention and potentially offer high returns, becoming one of the crypto trends that could dominate in 2024.
Moreover, a host of meme tokens, prime for volatility, will also surprise the markets. Especially the otherwise lesser-known tokens could see significant surges.
While many other developments could impact prices, we could see some crypto trends in 2024.
