Bitcoin is as soon as once more headed to a different halving occasion in 2024, and the halving is thought to have led to large rallies previously decade. That being stated, it doesn’t imply that historical past repeats on a regular basis.
We’re additionally in a interval of excessive inflation and rates of interest so it’s fascinating to see how cryptocurrency as a complete fares subsequent yr.
There are some new narratives combined with older ones as we go into 2024. Listed here are a few of the potential cryptocurrency narratives in 2024.
Disclaimer: The data offered on this web site doesn’t represent funding recommendation, monetary recommendation, buying and selling recommendation, or some other form of recommendation and you shouldn’t deal with any of the web site’s content material as such. Do your individual analysis and by no means make investments greater than you may afford to lose.
Potential crypto narratives in 2024
Beneath is a listing of a few of the narratives I believe should be related subsequent yr in 2024. It’s simply an opinion piece on what narratives are out there on the time of writing; not an recommendation to purchase into sure altcoins.
1. Synthetic Intelligence (AI)
One of many hottest matters in 2023 is none aside from synthetic intelligence (AI). ChatGPT was in all probability the AI product that made AI such a mainstream matter today.
There was additionally an enormous rally for AI shares and crypto firstly of the yr. If AI continues to be of the general public’s curiosity in 2024, then AI cash might have an opportunity to rally, regardless of some not really having a product however are fueled by hypothesis alone.
If AI shares rally subsequent yr, then the cash might observe based mostly on hypothesis solely.
2. Bots
Bots, particularly Telegram bots, have turn into one of many hottest narratives of 2023. They mainly enable customers to purchase and promote cash simply simply by utilizing Telegram. This implies traders who aren’t conversant in crypto is ready to commerce cash simply. Unibot began the craze of Telegram bots this yr and lots of initiatives have began their very own bots.
Nevertheless, Telegram bots typically include the chance of wallets being compromised since they’re utilizing your non-public key to regulate the pockets within the first place. A few of these bots have already rugged in simply months so you could be cautious.
3. SocialFi
One other massive narrative in 2023 that will carry ahead to 2024 is SocialFi. It’s mainly like social media mixed with the decentralized finance side of it. You’ll have heard of Buddy Tech and Stars Area when you’re within the crypto house.
You mainly purchase shares or tickets of different accounts and hope they go up in worth (largely influencers).
I’m undecided in the event that they’ll nonetheless be a factor subsequent yr however you may simply control them.
4. Layer 2s
A layer 2 is mainly a community or expertise that’s constructed on high of layer 1s. For e.g. Ethereum is a layer 1 and you’ve got many layer 2s constructed on high of Ethereum like Arbitrum and Optimism.
There are increasingly layer 2s popping out and lots of have entered the mainnet section. Though we had a very good run for layer 2s again in 2021, they might nonetheless be related in 2024 as a story.
The entire level of layer 2s is to scale a layer 1. As an illustration, Ethereum gasoline charges could also be too costly for most individuals on the planet, so layer 2s can be higher for a lot of as gasoline charges are less expensive.
5. Omnichain bridging
As increasingly chains come out, we’d like bridges to maneuver funds from one chain to a different.
One of many hyped initiatives that has been out for over a yr is Layer Zero they usually’re effectively generally known as an omnichain answer. There are a lot of different bridges round and it’s one of many doable narratives subsequent yr.
6. GambleFi
GambleFi is mainly crypto within the on line casino business. It’s humorous as a result of crypto by itself can also be largely playing however there are some initiatives which are really casinos that make the most of crypto.
It might be a story subsequent yr as there are already a variety of initiatives constructing on this GambleFi sector. You’ll be capable to gamble utilizing crypto mainly.
7. DEXes
Decentralized exchanges (DEXes) have been round for just a few years however they’re nonetheless related in the present day.
That is owing partially to centralized exchanges (CEXes) blowing up like FTX did in 2022, amongst others. The massive collapse led to many traders and merchants shedding their funds.
As CEXes include that threat, some have moved to decentralized finance (DeFi) which make the most of contracts to execute coin swaps and so forth. Nevertheless, DeFi has its personal threat of scams and rugs. You could unintentionally signal malicious contracts the place you may lose your funds.
8. Privateness
Privateness is without doubt one of the scorching matters as a result of governments all over the world have been attempting to get crypto customers to KYC.
A lot of the exchanges now, even the largest ones, have KYC legal guidelines.
Some crypto traders desire to stay nameless and there are initiatives which are centered on privateness for that goal.
9. On-chain prop agency
As many crypto traders are transferring on-chain, one other potential narrative could also be born.
There may be already a challenge that’s going to begin operations as a prop agency, which means you may both apply as a dealer to get funding, or maybe fund one other dealer that you just assume will do effectively.
This permits good merchants to get the funding they should commerce and make a revenue. Those who fund these merchants will earn a revenue from good trades.
10. Liquid staking derivatives (LSD)
Liquid staking derivatives (LSD) have been a scorching narrative in crypto this yr. They’re mainly monetary devices that signify staked tokens in a decentralized finance (DeFi) protocol.
For e.g. you could have standard ones like Lido and Rocketpool. You may stake your ETH on such platforms and also you’ll get one other token to signify your staked ETH. For Lido, you get stETH and Rocketpool you get rETH.
It’s one thing to control subsequent yr as extra LSD initiatives are popping out.
11. Metaverse / gaming
Metaverse was the most popular matter within the late 2021 the place the bull market peaked. It’s hardly talked about anymore and lots of have given up on it.
That stated, it will probably simply come again if there are strong initiatives to kickstart the curiosity once more.
12. NFTs
Much like the metaverse matter, many have branded NFTs as useless. This sometimes occurs earlier than they revive once more however it’s a more moderen asset class so it’s arduous to make certain.
Additionally, many NFT initiatives have left or ran away with the funding they obtained. Do control these NFT communities which are nonetheless lively in the present day.
13. Memes
Memecoins could also be more durable to commerce as a result of the market might transfer to a different meme sooner or later. As an illustration, we had cash like Doge rallying in 2021 however it doesn’t appear to do a lot today. Lots of the older meme cash are additionally all the best way down and should not come again subsequent cycle.
The factor with altcoins on the whole is that the majority cash from a earlier cycle is not going to return to all time highs and will likely be forgotten. Market contributors have a tendency to maneuver to newer cash every cycle as they provide higher positive aspects.
For e.g. in 2023 (this yr), we noticed Pepe making a run all the best way to over 1 billion marketcap earlier than plummeting again down. This reveals that the market might transfer on to newer cash every time.
14. Chinese language initiatives
One of many narratives that was scorching this yr is China. We had a number of Chinese language initiatives rallying firstly of the yr, as many have taken up the place that the following bull run could also be from the east, and never the west.
Whereas these initiatives have fallen rather a lot in worth, they might do a comeback sooner or later.
15. Layer 1s
A layer 1 is mainly the bottom community in which you’ll be able to construct different layers upon. For e.g. you could have Bitcoin, Ethereum, BNB, Solana and so forth.
That they had a very good run within the earlier cycle so it’s more durable to say if it’ll be an enormous narrative going ahead.
16. Actual world property (RWA)
Actual world property (RWA) is one other doable sector for 2024. RWA in crypto means the tokenization of bodily property on the chain.
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