Crypto experienced unprecedented expansion last year, propelled by the introduction of Bitcoin ETF Spot and innovations such as LSDfi, AI, Layer 2 technologies, Airdrop/Retroactive mechanisms, Telegram Bots, and GameFi.
As 2024 dawns, marking the advent of a new market cycle and the anticipated Bitcoin Halving in April, speculation abounds regarding the future of the crypto sector.
This article outlines five key predictions for the crypto market in the forthcoming year.
1. The NFT sector is expected to witness substantial growth on the Avalanche platform.
Despite the fading of NFT markets in ecosystems like Polygon and Flow, others such as Ethereum, Solana, Bitcoin, Sei Network, and Aptos have seen sustained growth, with NFTs attracting new participants. The challenge lies in discovering worthwhile NFT investments within established ecosystems like Ethereum or Solana, prompting a shift towards exploring new horizons.
For predicting NFT growth, factors such as proven ecosystem capabilities, active NFT market development, the emergence of noteworthy NFT and Builder collections, and growing interest in the ecosystem's NFT market are considered. Avalanche emerges as a strong contender against Solana in the DeFi arena, with a focus on Web3 Games in collaboration with studios like SKT and TSM, and the establishment of Avalanche Arts & Culture to compete in the NFT market.
2. The rise of Mantle and the Layer 2 competition is imminent.
Starknet and zkSync are set to be major Layer 2 players, anticipated to launch with high valuations. The current landscape, featuring Arbitrum, Optimism, zkSync, and Starknet, mirrors the dynamics of Solana, Ethereum, Avalanche, and Polygon, offering opportunities for platforms like Fantom, Near Protocol, and Polkadot in the Layer 2 domain.
Mantle Network, backed by substantial bitDAO funds and the acquisition of Trader Joe's copyright, demonstrates significant ambition. The anticipation is high for the emergence of next-generation Layer 2 platforms, including Linea, a zkRollup-based blockchain developed by Consensys, and Base, created by Coinbase using Optimism’s Optimistic Rollup technology.
3. Restaking could be the dominant narrative of 2024.
The momentum behind this trend is propelled by EigenLayer's official launch, significantly enhancing ETH staking profits and ETH LSTs. Puffer Finance successfully raised over $5.5M in funding from entities like Binance Labs, Faction, LBank Labs, SNZ Capital, and notable angel investors, indicating strong market interest.
Currently, investment opportunities in Liquid Restaking and Liquid Native Restaking projects are somewhat limited, with many yet to launch their tokens. The most promising avenue now lies in participating in Airdrop/Retroactive schemes, benefiting both the projects and EigenLayer.
4. The phenomenon of Airdrop/Retroactive is expected to surge.
Now is an opportune moment for token launches, with a potential bullish market in 2025 if current trends persist. Launching tokens in 2024 positions investment funds and development teams advantageously in a favorable market, while Airdrop/Retroactive initiatives for early supporters benefit retail investors.
If Airdrop/Retroactive continues to gain momentum, capital will circulate across different blockchains, fostering smaller-scale opportunities. Current interest is notably concentrated in Airdrop realms such as Infrastructure, Layer 1, Layer 2, and DeFi.
5. Emerging narratives surrounding Bitcoin focus on two main aspects.
Inscriptions have become a known factor in the crypto market, leading to challenges like elevated transaction fees and network congestion. Among the evolving narratives, Bitcoin Layer 2 stands out, with the development of the Map Protocol drawing inspiration from Ethereum’s approach, indicating a path forward in the evolving crypto landscape.
