The first half of 2024 has ushered in a new cycle for cryptocurrency adoption. The long-awaited approval of Bitcoin ETFs was a decisive factor for this new cycle. This not only pushed bitcoin back to the brink of institutional adoption, but also positioned the market for a potential bull market cycle.

These cycles have been marked not only by the introduction of new projects, from Bittensor and ZKSync to Bonk and Dogwifhat, but also by the strong price growth of many digital assets. With a higher beta compared to Bitcoin, assets of different sizes and sectors generally experience greater volatility reflecting expectations of higher returns.

Re-betting has become a notable vertical for this new cycle. This involves continuously staking rewards earned from staking tokens and accumulating returns over time. Projects such as EigenLayer (EIGEN), EtherFi (ETHFI) and Renzo (REZ) have implemented mechanisms that encourage users to re-stake betting rewards, thus increasing their stake in the network, contributing to its security and stability.

Altcoins are increasingly adopting Layer2 scaling solutions such as Optimistic Rollups, zkRollups, and sidechains to increase transaction speeds and reduce fees. This trend aims to improve user experience and attract more users to the platforms of these projects.

Current crypto market prices appear to indicate the beginning of a bull market, with mega caps still likely having room to grow before smaller coins overtake the rest of the market. However, this phase may not be far off, and once it begins, it can be difficult and potentially costly to be unpositioned, especially as enterprise adoption increases and the need to generate alpha grows.

Note: The opinions expressed in this column are the personal views of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.