On 7 December 2023, asset manager VanEck shared, on social media platform X, a comprehensive set of predictions for the cryptocurrency market in 2024. These predictions encompass various aspects of the crypto world, including market dynamics, technological advancements, and regulatory changes.
US Recession and Bitcoin ETFs: VanEck predicts the onset of a US recession alongside the launch of the first spot Bitcoin ETFs, anticipating over $2.4 billion to flow into these ETFs in Q1 2024, potentially bolstering Bitcoin’s price.
Bitcoin Halving Impact: The firm foresees minimal market disruption from Bitcoin’s fourth halving in 2024, followed by a rise in Bitcoin’s price, especially benefiting low-cost miners.
Bitcoin’s Price Surge: VanEck suggests Bitcoin could achieve an all-time high in Q4 2024, spurred by political events and regulatory changes after the US presidential election.
Ethereum’s Market Position: VanEck does not see Ethereum surpassing Bitcoin in 2024 but expects it to outperform major tech stocks. However, Ethereum’s market share could be challenged by other smart contract platforms.
Ethereum Layer 2 Post EIP-4844: Post the implementation of EIP-4844, VanEck anticipates Ethereum Layer 2 solutions to dominate the EVM-compatible TVL and trading volume.
NFT Market Rebound: The firm predicts a resurgence in NFT activity, hitting an all-time high, with Ethereum leading and Bitcoin gaining traction via the Ordinals protocol.
Shift in Spot Trading Leadership: VanEck expects Binance to lose its top position in spot trading, with platforms like OKX, Bybit, Coinbase, and Bitget vying for leadership.
Stablecoin Market Growth: According to VanEck, the stablecoin market cap will reach new highs above $200 billion, with USDC reversing market share losses.
DEXs Achieving Market Share Highs: The firm predicts that Decentralized Exchanges will hit all-time highs in spot trading market share, driven by fast blockchains like Solana.
Blockchain in Remittances: VanEck foresees a rise in blockchain use for remittances, with Bitcoin Staking on the Lightning Network offering yield opportunities.
Breakout in Blockchain Gaming: A blockchain game may surpass 1 million daily players, VanEck predicts, highlighting Immutable X’s potential in climbing market cap ranks.
Solana’s Market Cap Surge: The firm projects Solana to become a top 3 blockchain by market cap, TVL, and users, potentially surpassing Chainlink’s TVS.
Adoption of DePin Networks: Increased adoption of networks like Hivemapper and Helium is anticipated by VanEck, offering cost-effective alternatives to traditional infrastructures.
New Accounting Standards and Corporate Crypto Holdings: VanEck suggests new accounting standards will boost corporate crypto holdings, with Coinbase potentially reporting significant Layer 2 revenue.
KYC-Compliant DeFi Apps Over Non-KYC: The firm expects KYC-compliant DeFi applications to surpass non-KYC ones, potentially boosting Uniswap’s token value.
VanEck pointed out that the projections and opinions expressed in its thread are for illustrative purposes only, valid as of the date of posting, and are subject to change. It also mentioned that these views represent the author(s) at VanEck and not necessarily the entire firm or its employees. VanEck emphasized that the thread is not a recommendation to buy or sell any mentioned assets and that it should not be considered a prompt for any investment-related actions.
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