Written by: Lorena Nessi
Translation: Vernacular Blockchain
2024 is a significant year for the crypto industry, filled with exciting trends and moments that continue to spark community discussions.
From the headlines sparked by Memecoins to the tokenization of real-world assets, the entire year is filled with stories pushing blockchain into new domains.
Telegram games bring cryptocurrency closer to the average user, while prediction markets and liquid staking tokens offer new ways to interact with digital assets.
Coupled with rollups, modular blockchains, and the race to address quantum threats, 2024 is undoubtedly an unusual year.
These top ten trends showcase the vitality and innovation driving the crypto world forward.
1) The rise of Memecoins
Memecoins represent an unprecedented social phenomenon. While some view them as trivial or question their legitimacy as digital assets, considering them poor financial decisions or mere fleeting trends and products of viral marketing, they undeniably hold a place in the crypto ecosystem, blending humor, community engagement, and innovative digital value creation into a broader cultural movement.
1) Grassroots movements and celebrity effects
These tokens respond to various social, political, and economic contexts, reflecting cultural spirit. They leverage celebrity culture, often boosted by influencers, to enhance their visibility.
Memecoins often leverage grassroots movements, where communities unite around shared ideas and values, sparking collective action and creating viral trends. Memecoins also emphasize the role of participatory culture, empowering users to drive token adoption and shape narratives. They may sometimes simply be trivial trends.
2) Memecoins in 2024: Milestones and Influences
In 2024, Memecoins solidified their status as a decisive force in the crypto realm. Tokens influenced by Shiba Inu (SHIB), such as Neiro (NEIRO) and FLOKI Inu (FLOKI) — the latter launching a debit card — along with PepeCoin (PEPE) leveraging internet memes and nostalgia, demonstrate how humor and cultural relevance can drive notable financial activity.
In 2024, a notable example of Memecoin influence is when elected President Donald Trump appointed Elon Musk to lead the newly established Department of Government Efficiency (DOGE). The mission of this advisory body is to streamline the operations of the federal government and reduce inefficiencies, with its acronym intentionally paying homage to Dogecoin (DOGE), which is widely known as Musk's favored token.
3) Intersection of technology, culture, and society
Memecoins reflect the intersection of technology, culture, society, and politics, showcasing how seemingly whimsical ideas challenge traditional values and innovation concepts. For many, they serve as an entry point into the crypto world, providing an easily accessible gateway to technology-driven digital assets.
2) Growth of prediction markets
In 2024, decentralized platforms like Kalshi and Polymarket gained widespread attention for allowing users to predict events and earn rewards. These platforms cover a variety of topics, including sports event outcomes, election results, and cryptocurrency prices, leveraging blockchain technology to ensure transparency and security.
During the 2024 US presidential election, Kalshi's betting volume exceeded $100 million, showcasing the potential of prediction markets to gauge public sentiment. However, this growth also sparked criticism. Some analysts argue that low liquidity and susceptibility to manipulation undermine the reliability of prediction markets as forecasting tools.
Regulatory scrutiny has also intensified. Kalshi won a legal battle with the Commodity Futures Trading Commission (CFTC), allowing it to offer contracts on political events, but concerns about legality and market manipulation persist. Additionally, some have expressed ethical objections, questioning the morality of gambling on elections.
An X user expressed her concerns about betting on elections, posting: 'I think what the CFTC is pushing for is correct. Why gamble on elections? I personally don't like the idea.'
Despite these challenges, the rise of prediction markets highlights the demand for decentralized solutions to address real-world issues, solidifying their position as a significant trend in the 2024 crypto landscape.
3) Liquid Staking Tokens (LSTs) and Liquid Re-staking Tokens (LRTs)
In 2024, Liquid Staking Tokens (LSTs) and Liquid Re-staking Tokens (LRTs) gradually emerged, gaining greater influence based on early innovations. While EigenLayer launched its mainnet in mid-2023, its influence became more pronounced in 2024 as re-staking adoption steadily grew.
By mid-year, over 33.8 million ETH had been staked, indicating increased market confidence in Ethereum's proof-of-stake (PoS) model and the viability of liquid staking.
LSTs allow users to maintain liquidity while staking assets, enabling decentralized finance (DeFi) activities such as borrowing and trading. LRTs further enhance this concept by allowing validators to re-stake their staked assets to other networks or support services like rollups, increasing functionality and rewards. Despite a surge in adoption in 2024, achieving widespread acceptance across all domains remains an ongoing process.
Key platforms and competition
EigenLayer has made significant advancements in re-staking, with its platform having re-staked over 4.1 million ETH by April 2024. Other platforms like Lido Finance, Rocket Pool, and Frax Finance have also contributed significantly, expanding the use of LSTs and integrating them into the DeFi ecosystem. These projects have played a crucial role in driving innovation and accessibility in the staking arena.
Progress in 2024 has made LSTs and LRTs critical tools in the staking ecosystem, laying the foundation for the future integration of blockchain technology and DeFi.
4) Quantum computing threats
In 2024, discussions on the impact of quantum computing on blockchain security have taken center stage. While quantum computing technology offers tremendous potential for scientific breakthroughs and innovation, it also poses a significant threat to the core of cryptocurrencies — security.
1) Quantum threats
Quantum computers harness the power of quantum mechanics, potentially breaking the cryptographic algorithms that protect blockchain networks. Algorithms like Shor's could theoretically decrypt public-private key pairs, jeopardizing transaction confidentiality and integrity. Imagine if a malicious actor could steal a private key; they could execute double-spend attacks or initiate a 51% attack to control the blockchain network.
This potential consequence has prompted industry leaders to actively respond to this challenge. Professor Massimiliano Sala from the University of Trento highlighted the upcoming 'Q Day' during a Ripple event, emphasizing the imminent threat posed by quantum computing to traditional cryptographic technologies.
2) Seeking quantum-resistant solutions
Major enterprises like IBM and Google are leading advancements in quantum technology while also driving the development of quantum-resistant cryptography. This race has birthed projects like the National Institute of Standards and Technology (NIST) post-quantum cryptography standardization process, aiming to create encryption methods that remain secure even in the face of quantum computing breakthroughs.
3) Quantum defenses for blockchain
The blockchain community itself is actively exploring 'quantum-safe' solutions. Lattice-based cryptography and quantum key distribution (QKD) are emerging technologies designed to protect blockchain communications from quantum attacks.
Although the industry has taken proactive steps, transitioning to quantum-resistant infrastructure remains a complex and resource-intensive challenge. Google's latest quantum chip, Willow, has made significant progress in error correction, laying the groundwork for larger-scale quantum computers. While the power of this technology is undeniable, machines capable of breaking encryption are still far from widespread availability.
Therefore, developing and adopting quantum-resistant solutions to ensure the long-term security of cryptocurrencies is vital for the sustained growth and stability of the crypto industry.
5. Decentralized Physical Infrastructure Networks (DePINs)
In 2024, decentralized physical infrastructure networks (DePINs) became a significant trend, connecting blockchain technology with real-world assets. These networks demonstrate the potential to reshape the energy, transportation, and logistics industries.
Examples include decentralized wireless networks like Helium, blockchain-driven ride-sharing platforms, and supply chain tracking systems. DePINs bring greater transparency, enhanced security, improved accessibility, and community engagement.
Despite these advantages, challenges such as interoperability, scalability, and regulatory uncertainty remain.
As DePINs evolve and regulatory frameworks gradually follow suit, they are expected to change the way industries manage and access physical infrastructure, providing fairer and more efficient solutions for the future.
6) The popularity of trading bots and AI agents
In 2024, the crypto market witnessed a surge in the popularity of automated trading bots and AI agents. These tools are designed to execute trades based on predefined algorithms or real-time market analysis, fundamentally changing the landscape of crypto trading.
Major trends and innovations
AI-driven trading assistants/agents: AI-driven trading assistants, such as Near's AI assistant, have become valuable tools for all types of traders. Additionally, templates like Coinbase and Replit's Based AI Agent enable developers to create crypto bots for automated trading and asset management. As trading bots and AI agents gain popularity, concerns about market manipulation and unfair advantages arise.
Leading trading bots: Truth Terminal, an AI chatbot, gained notoriety in the crypto space for promoting a meme religion ('Goatse Gospel'). A substantial amount of Bitcoin donations spurred the launch of the GOAT meme coin, highlighting the potential influence of AI on crypto trends. Although Truth Terminal itself cannot trade, its impact has sparked debates about AI ethics, especially in the volatile meme coin market.
The increasing use of trading bots and AI agents is undoubtedly reshaping the landscape of crypto trading. While these tools provide significant advantages, caution is still necessary when using them, and a deep understanding of their limitations is crucial. As technology continues to evolve, balancing automation with human oversight will be key to ensuring responsible and ethical trading practices.
7) Application of rollup solutions in Layer 2 scaling
In 2024, rollups have become the cornerstone solution for Ethereum's scalability challenges. They address network congestion and high fee issues while maintaining Ethereum's security. As a Layer-2 solution, rollups transfer transaction processing off the main chain and bundle it into batches submitted to the main chain, enabling faster and cheaper operations.
Vitalik Buterin's standards
In September 2024, Ethereum co-founder Vitalik Buterin emphasized that Layer-2 networks must meet 'Phase One' decentralization standards by 2025. These standards include anti-fraud mechanisms, security council governance, and upgrade delays to ensure trust and transparency.
Rollup solutions like Optimism and zkSync have locked in billions of dollars while supporting DeFi, non-fungible tokens (NFTs), and decentralized applications (dApps).
Notably, challenges such as interoperability and achieving complete decentralization remain. However, rollup solutions continue to redefine Ethereum's scalability in 2024, establishing their critical role in the future growth and adoption of the Ethereum network.
8) Tokenization of Real-World Assets (RWAs)
In 2024, the tokenization of real-world assets (RWAs) is rapidly advancing, creating new opportunities for investors and businesses. Here is an overview of the current landscape:
1) Growth of the credit market
The global credit market has reached $1.7 trillion and has expanded at a compound annual growth rate (CAGR) of 17% over the past five years. However, only about $500 million of assets have been tokenized, indicating that there is still significant growth potential in tokenizing these assets.
2) Global tokenization potential
The global physical asset market exceeds $867 trillion, and tokenizing these assets could significantly enhance the economic impact of the crypto industry. By 2027, tokenized assets could account for 10% of global GDP, with the potential to expand the market size to $24 trillion (World Economic Forum).
3) Industry adoption and initiatives
The DeFi platform Ethena invested $46 million in tokenizing RWA funds, including products like BlackRock's BUIDL and Superstate's USTB. The Solana-based marketplace AgriDex collaborates with Stripe's Bridge and Circle's USDC to reduce cross-border agricultural trade costs from 2-4% to about 0.5%. Latin American banks like Littio are adopting the Avalanche blockchain to manage RWA vaults, demonstrating the global appeal of tokenization.
4) Institutional initiatives
Switzerland's largest financial holding company, UBS Group, launched its first tokenized fund, the 'UBS Dollar Money Market Investment Fund Token,' and issued it on the Ethereum blockchain, marking a significant shift in institutional attitudes towards tokenized assets. The Monetary Authority of Singapore is exploring tokenization through Project Guardian, setting standards for tokenized assets.
China is driving its digital asset agenda by issuing fully digitized structured products on the blockchain, reflecting regional demand for tokenization.
Launched in November 2024, Hadron is an asset tokenization platform introduced by Tether, aimed at simplifying the creation, management, and trading of tokenized assets. Hadron aims to be a user-friendly solution capable of tokenizing various assets from real estate to financial securities. With the continued growth of RWAs tokenization, Hadron is poised to redefine the global financial system, improving efficiency, transparency, and providing new investment opportunities across various sectors.
9) The rise of modular blockchains
In 2024, a transformation is occurring in the blockchain space, with the emergence of modular blockchains driving this change. This innovative approach is expected to fundamentally alter scalability, efficiency, and customization within the blockchain ecosystem.
1) Modular blockchain paradigm
Modular blockchains differ from traditional monolithic architectures, which bundle all functionalities into a single layer. Modular blockchains, on the other hand, adopt a modular design that breaks down the blockchain into multiple specialized components. This functional separation provides greater flexibility, scalability, and room for innovation within the blockchain.
2) Modular blockchain projects and use cases
Modular blockchains represented by Ethereum are well-known, and in recent years, several promising modular blockchain projects have emerged, each addressing specific challenges and opportunities:
Celestia: This project focuses on creating a decentralized data availability layer, ensuring all transaction data is accessible to all nodes in the network. This allows other modules (such as execution layers) to build on Celestia, leveraging its secure and scalable data infrastructure.
Fuel: This project is developing a modular execution layer that can process transactions in parallel, significantly increasing throughput and reducing transaction costs. Fuel's modular design facilitates integration with other blockchain components, creating a multifunctional and efficient ecosystem.
Dymension: This project aims to build a modular blockchain network capable of supporting various decentralized applications (dApps). By separating consensus, execution, and data availability into different layers, Dymension aims to achieve high scalability and security.
10) Telegram games: Attracting users into the crypto space
In 2024, Telegram emerges as a key platform for crypto gaming. Independent developers have launched 'Play-to-Earn' (P2E) games that merge entertainment with crypto rewards. Telegram's friendly bot infrastructure and vast user base provide fertile ground for these projects.
Hamster Kombat: Players manage a crypto trading platform operated by hamsters, earning HMSTRToken on The Open Network (TON). Although player engagement and token value significantly decreased by year-end, it showcased the appeal of P2E games, having attracted up to 3 million players.
Catizen: This game allows users to earn CATIToken through creative gameplay. While this concept resonated with many, the volatility of token prices reflects the challenges of combining gaming with the crypto market.
PAWS: As a newcomer in the P2E ecosystem, PAWS attracted over 25 million players through its virtual pet care model, amassing a large user base in just a few days.
Although these games have faced criticism for repetitive gameplay, excessive time investment, and the need for crypto investment to maximize rewards, they have played a key role in the crypto narratives of 2024. Their success highlights the potential and complexity of merging gaming with digital assets, becoming an important chapter in the evolution of the P2E ecosystem.
CItizen game | Source: Citizen
11) Conclusion
2024 is filled with stories reshaping the crypto industry, laying the groundwork for future growth. Memecoins attract audiences through humor and financial innovation, while prediction markets and decentralized physical infrastructure networks (DePINs) showcase how blockchain can address real-world issues. Telegram games bring in a wave of new users into the crypto space with their engaging 'Play-to-Earn' model.
Liquid staking and re-staking tokens have strengthened Ethereum's staking ecosystem, offering users more flexibility. Rollups have addressed scalability issues, making Ethereum faster and more efficient, while modular blockchains introduce a whole new way to build decentralized systems with greater customization.
The industry is also taking steps to prepare for the quantum computing era, with quantum-resistant solutions becoming a key focus. Tokenization of real-world assets bridges traditional finance and blockchain, unlocking exciting opportunities and shaping a digitized future. AI agents and trading bots are changing the way users interact with markets, driving automation and efficiency.
These developments highlight the innovation and challenges within the blockchain world, showcasing the potential for profound impacts in technology, finance, and culture. How the future will evolve remains to be seen.
Q&A
1) What are the major crypto trends in 2024?
2024 highlights several transformative trends, including the rise of Memecoins, the popularity of prediction markets, advancements in quantum-resistant cryptography, and the growth of decentralized physical infrastructure networks (DePINs). These narratives play a crucial role in shaping the crypto landscape.
2) How will quantum computing influence the crypto industry in 2025?
Quantum computing poses significant challenges by threatening the traditional cryptographic methods used in blockchain. In response, the industry has accelerated the development of quantum-resistant solutions, such as lattice-based cryptography and quantum key distribution (QKD), to ensure the long-term security of blockchain networks.
3) Why are Memecoins so influential in 2024?
Memecoins like FLOKI and PEPE continue to capture the attention of the crypto community by combining humor, cultural relevance, and community-driven initiatives. They also attract attention through high-profile endorsements, such as Dogecoin mentioned in government efficiency projects involving Elon Musk.
4) What role will AI and trading bots play in the 2024 crypto market?
AI-driven trading bots and agents are revolutionizing crypto trading by automating decision-making processes. These tools enhance market participation but also raise ethical and regulatory concerns about market manipulation and fair trading.
