The crypto market has witnessed an increased market cap of $1.20 trillion in 2023. The year has been the one that has evolved and institutionalized the crypto market, as per a Goldman Sachs report. Bitcoin reached new highs in November, whereas Ethereum and Solana gained 56% and 57%, respectively.
In this article, we will discuss the top 11 crypto predictions for the year 2024.
Bitcoin to cross the $80k mark and make an all-time high
In 2024, Bitcoin is gearing up for a groundbreaking surge, projected to hit an all-time high of $80,000. One of the main reasons behind this is stablecoins, which are set to outpace Visa in settlement volumes, reaching a market cap of $137 billion, indicating a massive surge in their utility and trading volume. This surge in stablecoins is expected to contribute to Bitcoin's rise.
Furthermore, it is predicted that Bitcoin's price will be bolstered by the launch of the first spot Bitcoin exchange-traded fund (ETF) and the upcoming halving event in April 2024. The ETF's approval and subsequent launch, capturing $72 billion in assets within five years, are major catalysts for Bitcoin's upward trajectory, which will be discussed in detail later.
While various predictions exist, it is also anticipated that 2024 will be a robust year for Bitcoin, coupled with Ethereum's significant improvement, forecasting a 100% increase in revenue to $5 billion.
Also, in the latter part of 2024, Bitcoin is expected to encounter challenges as a large global population, exceeding 45%, is expected to vote in crucial legislative and presidential elections. This surge in elections could lead to increased Bitcoin prices, especially if there are positive changes after a tough election, potentially reaching an all-time high in November 2024.
First spot bitcoin ETFs to launch
According to Bloomberg's ETF analysts, there is a strong probability, around 90%, that a spot Bitcoin exchange-traded fund (ETF) will receive approval in early 2024. Beyond just getting the green light, for an ETF to substantially impact the market, it needs to attract significant assets. In light of the same, internal studies suggest that spot Bitcoin ETFs could capture 1% of the $7.2 trillion US ETF market, amounting to $72 billion within the next five years, as per an Amazon report. The report also notes the robust performance of Bitcoin prices, with increased spot trading volumes, suggesting growing interest from new purchasers and gain-taking exiters.
The anticipated approval date for the spot Bitcoin ETF is set for January 10, 2024.
Amazon analysts predict a noteworthy market shift, expecting a significant rotation away from futures-based ETFs on the Chicago Mercantile Exchange (CME) once spot ETFs receive approval. This shift is seen as a substantial development in the cryptocurrency market, potentially reshaping the landscape of Bitcoin-related investment products.
Ethereum revenue to reach $5 billion
In 2024, Ethereum (ETH) is set to experience a substantial revenue boost, doubling from $2.3 billion in 2023 to a projected $5 billion. This surge is attributed to a growing user base flocking to crypto applications hosted on the Ethereum network. Contrary to the misconception that blockchains lack cash flow, Ethereum functions as a global supercomputer, facilitating numerous crypto applications that users interact with daily. The fees incurred by users to access these applications contribute to Ethereum's cash flow. An optimistic outlook by Amazon's analysts anticipates substantial advancements and growth within the cryptocurrency market in the coming years.
Crypto to be the native currency of the internet
In 2024, a significant technological shift is expected as AI assistants increasingly utilize cryptocurrencies for online transactions, strengthening crypto's status as the native currency of the internet. As the next technological breakthrough, semi-autonomous AI agents, capable of executing specific tasks like altering travel plans or purchasing goods, are set to become prominent in 2024 and beyond. However, their efficacy depends on seamless transactions in the digital realm, prompting the integration of cryptocurrencies.
The forecast suggests that AI agents will favor digitally native currencies such as Bitcoin or stablecoins, marking the initiation of this trend on a smaller scale in 2024. This integration aims to enhance the capabilities of AI agents by enabling fluid and protected digital transactions, aligning with the trajectory of the internet's evolution.
ETH blockchain update to lower transaction costs
An impending Ethereum blockchain upgrade, known as EIP-4844, is poised to significantly reduce average transaction costs to below $0.01 in 2024. Currently, low-cost Layer 2 blockchains average around $0.14 per transaction, and EIP-4844 aims to achieve a remarkable 90%+ reduction, making transactions more cost-effective.
Vitalik Buterin, Ethereum co-founder, emphasized reducing transaction fees to $0.05 for wider acceptance within the developer community and crypto users. This aligns with the goals of the EIP-4844 upgrade, which focuses on enhancing scalability and minimizing gas fees on the Ethereum network.
The anticipated reduction in transaction costs is expected to pave the way for innovative applications, including micropayments, social media, and large-scale gaming, marking a significant milestone in crypto's journey toward mainstream adoption.
US banks to accept tokenized pay
In 2024, a notable development in the crypto sector is anticipated as US banks are expected to accept tokenized payments. This prediction aligns with the ongoing trend of positive advancements in the cryptocurrency space. Major financial institutions, including JP Morgan, have already initiated the deployment of tokenized payments on enterprise blockchains.
Despite the Chase CEO, Jamie Dimon, expressing reservations about crypto, these institutions recognize the advantages of tokenized payments. Additionally, payment processors, such as PayPal, continue to expand their crypto products and services, contributing to the growing acceptance of tokenized payments. As some of the world's largest banks, such as IMF, join the realm of tokenized payments, this technology's broader adoption and implementation are expected to progress, marking a significant stride in integrating cryptocurrencies into the traditional financial landscape.
Multiple crypto projects to airdrop
One notable prediction gaining attention pertains to crypto projects and their likelihood of conducting airdrops in 2024. Airdrops involve the distribution of crypto tokens to eligible wallets, often based on specific criteria or prior usage of particular services.
According to Nasdaq, there is a nearly 50-50 chance that Aleo, a privacy-focused decentralized finance (DeFi) project, will conduct an airdrop by April 2024. Additionally, probabilities are assigned to other projects, such as the Pudgy Penguins non-fungible token (NFT) collection and Blast, a layer two blockchain.
Despite the relatively modest trading volumes on these specific predictions, airdrops remain a compelling topic due to the potential for participants to receive free tokens. Investors keen on anticipating which protocols might execute airdrops in 2024 can leverage these insights to inform their investment decisions. The crypto community eagerly awaits the unfolding of these events, providing a fascinating glimpse into the future of the cryptocurrency landscape.
NFTs to make a comeback
The NFT market, which experienced a downturn following the hype of 2021-2022, is predicted to make a comeback in 2024. While NFTs inscribed on the Ethereum blockchain faced challenges, a resurgence is anticipated with a notable shift to the Bitcoin network. Ordinals, the NFTs on Bitcoin, have become a dominant force, constituting over half of daily Bitcoin transactions, with trading volumes reaching a record $36 million on December 12, 2023.
The revival of NFTs is driven by the global adoption of blockchain technology across various industries, including arts and music, empowering creators with blockchain-based tools like non-fungible tokens. As blockchain gains traction, traditional institutions transition to this technology, propelling the NFT market to reach new heights. Despite recent negative perceptions stemming from market speculation, fraud, and FOMO, the evolving landscape is expected to bring renewed interest in NFTs.
Global sentiment towards NFTs is undergoing a positive transformation, marked by increased use cases across diverse sectors. Countries like Singapore, Hong Kong, Canada, and the United States lead the NFT interest, reflecting a global shift in perception. The NFT market, despite recent challenges, is expected to see a resurgence in the coming months, with an estimated user base forecasted to rise from 13.95 million in 2023 to 19.31 million by 2027.
Solana to outperform ETH
In 2024, Solana is poised to outperform Ethereum (ETH) as a leading Layer-1 blockchain contender. This projection is based on the SOL/ETH ratio, which is currently 0.037, highlighting Solana's recovery against Ethereum and anticipating continued growth in market capitalization and Total Value Locked (TVL). Solana is expected to bag a position among the top three blockchains by market cap, TVL, and active users.
The surge in Solana's performance is attributed to its significant market share gains, positioning it to enter the competitive market of spot ETFs. Asset managers are anticipated to file submissions in response to Solana's remarkable ascent, potentially leading to the introduction of a Blackrock Spot Solana ETF, further fueling its momentum.
Solana's innovative features, including its pull architecture and confidence interval system, position it for a better position in the evolving blockchain landscape. As high-throughput chains like Solana experience growth in TVL, Solana-based price oracle Pyth could surpass Chainlink in Total Value Secured (TVS).
Corporate crypto holdings to rise
In 2024, corporate crypto holdings are expected to rise significantly due to a new accounting treatment that will rejuvenate the case for holding cryptocurrencies as treasury assets. The surge in corporate crypto holdings is further catalyzed by adopting new Financial Accounting Standards Board (FASB) guidelines. These guidelines, effective from December 2024, allow corporations to recognize fair value changes in crypto holdings.
Previously, companies had to report losses on crypto holdings if their value dropped below the purchase price, even if the assets were not sold. With the new rules, companies will report fair value, cost basis, and asset types, providing more relevant information about these assets' underlying economics and financial position.
There is speculation that a non-crypto financial entity, such as a bank or exchange, may announce the creation of a quasi-public blockchain with bridging capabilities to public blockchains. These developments mark a significant shift in corporate attitudes toward crypto, with potential widespread adoption as treasury assets.
Overall crypto market to rally in 2024
In 2024, the cryptocurrency market is set to rally, building on its past performance and positive trends. The global cryptocurrency user base, estimated at 1 billion, is anticipated to grow, particularly in regions like Africa, South America, and Asia. This could touch around 2 billion by 2028. Altcoins such as Ethereum, Solana, Polkadot, and Cardano are expected to gain attention, with a focus on decentralized finance (DeFi) platforms and decentralized autonomous organizations (DAOs). The overall blockchain market is projected to expand to $39.17 billion by 2024 and grow up to 13.98%, fueled by regulatory clarity, technological advancements, and rising institutional interest.
The emergence of Web3 technology is set to revolutionize data and the internet, decentralizing control and democratizing access. Bitcoin is foreseen as a key player in the next crypto bull market, leveraging its network effect and finite supply. Regulatory developments, stablecoins like USD Coin, and advancements like Ethereum's sharding are also anticipated, creating a dynamic and transformative crypto landscape in the coming year.
ETH to fall against BTC
In 2024, Ethereum is anticipated to fall short of surpassing Bitcoin, yet it will exceed the performance of major tech stocks. Bitcoin's clearer regulatory standing and lower energy consumption will attract interest from quasi-state entities in Latin America, the Middle East, and Asia. Argentina is also expected to become the fifth country, after El Salvador, the UAE, Oman, and Bhutan, to endorse Bitcoin mining at the state level, leading to its price appreciation.
While Bitcoin leads the market rally post-halving, Ethereum's outperformance is expected later in 2024. Despite a robust 2024, Ethereum may lose market share to other smart contract platforms like Solana, known for a more certain scalability roadmap.
Navigating the crypto market in 2024
The diverse perspectives on crypto, such as some foreseeing Ethereum's resurgence, driven by the EIP-4844 upgrade and improved sharing efficiency, while others contending that Bitcoin will maintain its market-leading position amid regulatory clarity and energy considerations, provide traders with broad market sentiment. Amidst this complexity, traders must be aware and avoid risks, carefully navigating the contrasting viewpoints to make informed decisions in the volatile crypto landscape.
