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Crypto 2024: Trends and Forecasts Unveiled By Leading Institutions

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In 2024, the crypto market is poised for a promising year, with leading institutions unveiling comprehensive research reports that shed light on the industry’s focal points. According to Vernacular Blockchain’s review of reports from 23 major institutions, several trends are expected to dominate the crypto landscape this year.

Navigating The 2024 Crypto Bull Market

Bitcoin takes center stage, experiencing an ecological renaissance after the launch of Ordinals, a digital content encoding method. Bitcoin’s dominance is predicted to increase from 38% in January to around 50% in December, making it the highlight of 2024. Mainstream U.S. crypto index fund manager Bitwise anticipates Bitcoin’s trading price surpassing $80,000 this year. Coinbase echoes the sentiment, foreseeing institutional investment predominantly focused on Bitcoin in the first half of 2024.

Ethereum’s Layer 2 development is also in the spotlight, with the completion of the Cancun upgrade expected to significantly reduce gas costs and propel the Ethereum Layer 2 ecosystem. Solana, having demonstrated robust performance in 2023, is predicted to attract more projects in 2024, further expanding its ecosystem.

DePIN, an acronym for Decentralized Public Internet Network, emerges as a new frontier in 2024, gaining attention for its innovative approach to building and maintaining physical infrastructure in various industries. The DePIN industry, currently valued at $2.2 trillion, is forecasted to grow to $3.5 trillion by 2028, according to Messari.

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Meanwhile, the integration of AI and blockchain garners enthusiasm, with AI-related tokens reaching a market value of $7.04 billion in early January. The application of AI in crypto, such as trading bots and automated payments, is expected to increase demand for cryptocurrency solutions. The intersection of AI and encryption technology is explored, aiming to enhance user experience and efficiency in Web3.

In addition, GameFi, the convergence of gaming and finance, is poised for an outbreak in 2024, with predictions of AAA Web3 games launching and attracting millions of new users. Large traditional game companies, including Ubisoft and Square Enix, contribute to the anticipation surrounding GameFi.

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Moreover, according to the report, regulatory policies continue to shape the industry, with predictions of increased regulation and competition among jurisdictions to become key hubs for digital assets. The SEC’s lawsuit against Ripple Coin is expected to conclude in 2024, influencing the regulatory landscape.

Less popular tracks such as NFTs, RWA, and SocialFi generate mixed sentiments. NFTs face challenges after a boom in 2021, while RWA sees optimism due to increased institutional interest in tokenized real-world assets. SocialFi, the fusion of social media and DeFi, experienced a brief surge but faces uncertainty about its prospects in 2024.

Overall, the crypto industry, having weathered the bear market in 2023, is now poised for a bullish phase, marked by diverse trends and narratives that promise to shape its trajectory in the coming year.

Related Reading | Binance Bolsters Compliance Efforts With A 35% Budget Surge: Report

Coinbase’s Base Layer-2 Network Experiences Temporary Outage

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Coinbase’s Ethereum Layer-2 network, Base, experienced a temporary outage recently, shedding light on the complexities and challenges inherent in the world of blockchain technology. Lasting half an hour, with an additional 30 minutes for resolution, the incident was described as a “Base chain stall” by the development team. Despite this setback, it’s important to note that no user funds were at risk during this outage, providing a crucial reassurance to the community.

The root cause of the disruption was attributed to internal infrastructure issues, necessitating a refresh. Although the problem was swiftly identified and resolved, it took some time for Base to fully recover. While “widespread recovery” was achieved relatively quickly, a lingering issue with remote procedure calls (RPCs) prolonged the issuance of an all-clear report.

This incident served as a reminder of the fundamental distinction between Ethereum Layer-2 solutions like Base and the Ethereum mainnet. Matt Willemsen, the head of research at Collective Shift, highlighted the crucial point that Ethereum Layer-2 solutions, while promising, should not be seen as identical to the battle-tested Ethereum mainnet. It’s essential for users to understand the nuances and differences between these platforms, particularly when it comes to trust assumptions.

Base’s Remarkable Growth in Coinbase’s Ecosystem

Base, created by cryptocurrency exchange giant Coinbase, is a relatively new addition to the Ethereum Layer-2 ecosystem. Despite its youth, it has experienced remarkable growth, even surpassing Ethereum’s daily transaction volumes at times. DeFi Llama data reports that Base has generated approximately $6 million in protocol fees, largely driven by its appeal to the meme coin community.

In recent developments, Base has expanded its offerings by natively supporting USDC and integrating with platforms like Ledger Live and PancakeSwap. Furthermore, it has forged partnerships with well-established entities like Chainlink and Aragon, as well as various consumer brands. These moves indicate Coinbase’s commitment to establishing Base as a significant player in the Layer-2 ecosystem.

While the outage incident may raise concerns, it’s important to remember that even the most established blockchain solutions have experienced technical hiccups. Solana, for instance, has had its share of challenges, elevating blockchain outages to meme status. In the rapidly evolving world of blockchain technology, occasional disruptions are par for the course as the ecosystem continues to mature.

In conclusion, Coinbase’s Base Layer-2 network, while relatively young, has shown substantial promise and growth. The recent outage serves as a reminder of the importance of understanding the distinctions between different blockchain solutions. As the cryptocurrency landscape evolves, Coinbase’s commitment to improving and strengthening Base should provide users with confidence in its long-term viability.

Ethereum scaling solution to go Nitro on 31 august

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Arbitrum, Ethereum’s layer-2 scaling network will receive one of its most significant updates, which will speed up transaction processing, lower transaction costs, and make cross-chain communication between Arbitrum and ETH simpler. This upgrade is scheduled to take place on Wednesday. 

In a tweet on August 29, Arbitrum reaffirmed the date of the “Nitro” update, stating that it will go into effect on August 31 at 10:30 AM Eastern Time and that a two to four-hour network outage period should be anticipated.

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Source: Twitter

In order to aggregate huge volumes of transactions from Ethereum smart contracts and decentralized apps off-chain before submitting them to Ethereum, Abritrum is an Ethereum layer-2 scaling solution.

Nitro will be a “fully integrated, complete layer 2 optimistic rollup system” that builds on Arbitrum One with stronger fraud proofs, as well as newer sequencers, token bridges, and call data compression technologies, according to Offchain Labs’ GitHub account.

Ethereum’s Offchain Labs ArbOS update

Offchain Labs is a blockchain-based business founded in 2018 that develops a range of scaling solutions for ETH. The Arbitrum One network is the most famous network the company has implemented.

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Source: Twitter

ArbOS (Arbitrum Operating System), which is now rewritten in the software programming language Go, was also updated by Offchain Labs. The updated version will enhance data compression, transaction batching, and cross-chain communication between Arbitrum and Ethereum, all of which will reduce expenses on the Ethereum mainnet.

Additionally, it was claimed in the document that the state of Arbitrum One “would be moved seamlessly” to Nitro, which, if done successfully, should completely eliminate the risk of a chain split.

Offchain Labs claimed that the Arbitrum Nitro upgrade would be “the most advanced Ethereum scaling stack” and that “Nitro would dramatically enhance network capacity and minimize transaction costs” in a paper published in April 2022, stating:

“Today, we throttle Arbitrum’s capacity, but with Nitro we’ll be able to release those controls and significantly up our throughput. And while Arbitrum today is already 90–95% cheaper than Ethereum on average, Nitro cuts our costs even further.”

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Source: Twitter

Arbitrum has $936 million total value locked (TVL) on the network divided across 111 distinct protocols, with GMX, Stargate, Curve, and Uniswap among the most well-liked apps, according to decentralized finance (DeFi) aggregate DeFi Llama.