In its 2024 Crypto Market Outlook, listed U.S.-based crypto exchange Binance put forth some predictions and trends for 2024.
Here are some of the key takeaways:

The Next Cycle
The next BULL RUN which we all kept dreamin of, based on bloomberg and coinbase platforms

  • Bitcoin Hegemony: Traditional investors and potential US spot bitcoin ETFs drive Bitcoin's dominance.

  • A New Trading Regime: Developers focus on building web3 infrastructure for real-world use cases.

  • The Layer-1 Equilibrium: Ethereum maintains dominance in smart contract platforms, while alternative layer-1s find niche sectors.

  • The Evolution of Layer-2s: Layer-2 solutions grow, shifting activity from Ethereum mainnet and alt layer-1s, and adopting a modular approach.

  • Validator Middleware and Customizability: Validator middleware developments, like restaking and distributed validator technology, offer enhanced customization and security.

Bitcoin Developments

The Binance report emphasizes the growth and innovation in Bitcoin, marked by the Ordinals protocol introducing Bitcoin NFTs and memecoins, which is driving up network activity. It also points at U.S. spot Bitcoin ETF approvals, indicating increasing institutional interest and anticipation of the next Bitcoin halving in April 2024, expected to decrease block rewards and potentially increase Bitcoin's value.$BTC

Stablecoin Supply Increase

For the first time since early 2022, the supply of top stablecoins showed a positive quarterly net change, showing an influx of new money and investors to crypto markets. $USDC

NFT Market Revival

A notable uptick in NFT trading volumes, especially with Bitcoin NFTs surpassing Ethereum in trading volume is signaling a resurgence in the NFT market after a tough 2 years.


Rising Protocol Fees

Increased fees will be generated by top crypto projects, with Ethereum leading will prove that sustainable business models within the crypto sector are possible.

Layer 1 (L1) Dynamics

Ethereum maintains dominance, but other L1s like Solana and TonCoin are showing huge potential, creating a much needed more competitive landscape for smart contract blockchains. $SOL

Emergence of SocialFi

SocialFi, which blends DeFi and social media elements together, is gaining traction, with platforms like friend.tech, which has pulled in over $25 million in fees since its launch despite still being in beta, indicating the untapped potential for Web3 social apps.

Read the rest of Binance Research’s key crypto trends to watch in the upcoming year.

Source:
Top Crypto Predictions of 2024 | CoinMarketCap