Cryptocurrency Trends in 2024

The cryptocurrency landscape has had an interesting journey. It promised users a new system of transparency and security that no traditional financial system could offer. This dream came to life in 2009 when Satoshi Nakamoto created Bitcoin using revolutionary blockchain technology.

Blockchain is a decentralized finance ledger technology that stores financial data in blocks on a Web3 network. Unlike fiat currency, cryptocurrencies are free from the control of central governments and financial institutions.

After Bitcoin, other digital currencies emerged, leading to advancement in the web3 layer. The market cap and price of cryptocurrencies have also increased, thanks to the continued adoption and use of of crypto coins.

But what does the future of cryptocurrency look like?

In this article, we’ll explore cryptocurrency trends in 2024, including Bitcoin halving.

Current Trends in Cryptocurrency

Cryptocurrency is a dynamic landscape. Let’s look at the cryptocurrency trends taking the market by storm.

Decentralized Finance (DeFi)

Decentralized finance (DeFi) is an emerging trend in cryptocurrency that uses blockchain technology to eliminate third parties. How does DeFi work?

DeFi works through a peer-to-peer financial system that communicates with a blockchain to automate transactions between users. This gives users a range of financial options to choose from when trading, loaning, gifting, or making a purchase through a cryptocurrency exchange like Binance.

Decentralized finance is becoming popular due to the financial freedom, accessibility, transparency, low fees, autonomy, and security it offers.

Stablecoins

What is a stablecoin? A stablecoin is a digital asset created by pegging a cryptocurrency token to a stable asset like gold or fiat money. The reason behind creating stablecoins is to reduce the volatility associated with digital currencies.

Stablecoins are backed by traditional investments, making them more attractive to investors who want to use cryptocurrency without the fear of price fluctuations. Tether (USDT-USD) is an example of a stablecoin, which has the highest market cap in the stablecoin market.

Non-Fungible Tokens (NFTs)

Another emerging cryptocurrency trend is non-fungible tokens (NFTs). NFTs are unique digital identifiers on a blockchain that show the ownership and authenticity of a piece of content or item. NFTs are created through minting, meaning once an asset’s information is encrypted and recorded on a blockchain, it can’t be changed. NFTs can be bought, sold, or traded on a cryptocurrency exchange using a digital wallet.

Central Bank Digital Currencies (CBDCs)

The evolution and widespread popularity of cryptocurrency and blockchain technology are pushing governments to create their own digital currencies to keep up with the drop in the use of fiat money. This has led to the creation of central bank digital currencies (CBDCs) that have fixed and equivalent value as the respective country’s fiat currency.

This transition to digital currencies could pave the way for the regulation of cryptocurrency as a mainstream medium of exchange. This will balance innovation and consumer protection, making transactions quicker, cheaper, and safer.

Development of Eco-friendly cryptocurrencies

There are increasing concerns about the amount of energy used in mining Bitcoin and other cryptocurrencies. To promote sustainability, over 45 companies and individuals in the crypto, finance, energy, and technology industries have signed up for the Crypto Climate Accord, which aims to achieve net-zero electricity emissions by 2030.

Emerging initiatives advocating cryptocurrency sustainability are promoting the increased use of renewable energy in mining crypto coins, the creation of energy-efficient protocols, and the offsetting of the carbon footprint.

Bitcoin Halving

Bitcoin halving is splitting Bitcoin’s mining reward in half. The halving event occurs every four years, during which the blockchain network opens 210,000 more blocks. Bitcoin halving aims to reduce the rate at which cryptocurrency is introduced, thus increasing its stability and demand.

The recent Bitcoin halving occurred on 19th April 2024, reducing the Bitcoin mining rewards from 6.25 to 3.125 BTC. The next halving will take place in 2028, reducing the block reward to 1.625 BTC.

Other Cryptocurrency Trends to Keep an Eye on

Cryptocurrency and blockchain technology are expanding and changing how we interact in the digital era. In this section, we’ll examine the prices and trajectories of digital currencies and their applications in other industries.

Blockchain Technology in the Crypto Gambling Industry

The crypto trend will not be complete without shedding light on the crypto gaming market, whose borders cannot be avoided by blockchain technology. This technology is proving how important it is in the world of wagers, with the crypto-gambling market in focus. The funds should be held in trust within the impenetrable blockchain fortress.

The development in the crypto gambling market can only get more popular as blockchain technology adoption continues to solve some major issues in the gaming industry, such as:

• No more any governing party holding funds belonging to another party.
• Manipulations of games are beaten down to the lowest minimum.
• Campaign against localization of online gaming based on geographical location. Anyone with the desire and funds to pay for a session can join without the payment system being a barrier.
• Fairness in gambling has improved by a wide margin, and the blockchain will close the window for further manipulation by players and the gambling board – where every gaming record cannot be erased.

Bitcoin’s Increase In Value

At the start of 2024, the price of Bitcoin was $39,000. By the end of March 2024, the price of Bitcoin had hit its all-time high (soaring over $79,000) due to the following reasons:

• The approvals of spot Bitcoin ETF by SEC.
• Trading of Bitcoin ETFs on stock exchanges, with Bitcoin being held as the chief asset.
• Bitcoin halving exercise, which will be done in April 2024.
• Bitcoin halving is done every four years (just like a FIFA World Cup). The last one was done in May 2020.

The halving reduces the reward package for Bitcoin miners by half. Historically, these halving events have correlated with price increases, as the reduced rate of new Bitcoin creation boosts scarcity, eventually driving up demand and prices.

Coin Base’s Ascending Trajectory

Due to its trading volume, Coinbase, the leading cryptocurrency exchange in the US, has established brand authority with investors over the years.

In 2023, Coinbase’s stock appreciated by 418% and also witnessed 14% growth in revenue.

Reports stated that the company is set to double its previous year’s revenue in 2024.

The expected growth at Coinbase is closely based on two key catalysts:

• The advent of the Bitcoin ETF
• The soon-to-come bitcoin halving.

Both factors are expected to drive increased demand for bitcoin, which constitutes the majority of the platform’s trading volume. The factors are projected to create a demand for Bitcoin, which commands a huge chunk of Coinbase’s liquidity flow.

Ethereum’s Continuous Appreciation

Ethereum’s growth has been steady so far in 2024, and analysts support it. According to them, it may double in value. Many changes are expected in the ecosystem after an upgrade, EIP-4844 (to be done in H2 2024), after which the transaction speed of ETH is expected to cross over 100,000 per transaction.

The now-scary transaction cost of the cryptocurrency is also projected to be reduced after this upgrade. So many crypto projects have been promoted by Ethereum through the following ways:

• Offering smart contract functionality
• Serving as a primary platform for the DeFi ecosystem
• Facilitating the tokenization and sale of NFTs
• Enabling the creation and issuance of new tokens.

Ethereum acts as a foundation for the development of various crypto projects. The reduced transaction costs are poised to improve further the platform’s appeal to its existing and new user base.

On-Chain Innovations in Traditional Finance

Expect an increase in on-chain innovations throughout 2024. In 2023, J.P. Morgan collaborated with blockchain firms to showcase a proof of concept enabling asset managers to tokenize funds on their choice blockchain. This approach allowed them to purchase and rebalance positions in tokenized assets across multiple chains.

This demonstration came at a time greeted with increasing interest in the traditional financial sector in crypto and blockchain technology.

AI, Decentralization, and Crypto Evolution

The integration of AI tools into the crypto industry is set to record significant strides in 2024, unlocking vast potential. Companies are expected to use AI algorithms to improve transaction speed, run through transaction data, and boost efficiency and security.

Also, the crypto world was stunned by the creation of AI-created personal trading assistants that learn their client traders’ risk habits and preferences to provide personalized trading advice and manage trades.

Finally, based on these expected trends, crypto investors are sure to take steady looks at their portfolios to monitor the effects of these trends on their investments.

Why Are Trends in Cryptocurrency Important?

The cryptocurrency landscape is volatile. This means that the price of a digital asset can go down or up depending on market supply and demand, regulatory changes, and media and news. Here are some reasons why you need to understand cryptocurrency trends:

Understanding Crypto Market Trends

The best way to understand the crypto market movement is to analyze charts and historical data. This knowledge helps you understand how a particular digital currency is performing on the market (moving upwards, downwards, or sideways). With this information, you can make informed trading decisions (when to buy or sell a cryptocurrency).

Establishing Support and Resistance Levels

Being up-to-date with crypto market trends helps you leverage technical analysis to identify the critical support and resistance levels. Critical support and resistance levels indicate points where demand or supply could stop price movements, helping you have a strategy when trading cryptocurrency.

Utilizing Technical Indicators

Technical indicators would benefit any cryptocurrency trader. Technical indicators use the latest market data to predict the strength, price momentum, and potential trend reversals of digital assets.

Interpreting Market Sentiment

Market sentiment, which is purely based on how traders feel about a particular crypto project, can influence price movements. Reading cryptocurrency trends and using technical analysis can help you predict or understand the market sentiment, keeping you in a better trading position.

Long-term Investment Strategy

Cryptocurrency trends can influence your long-term investment plans. You can analyze past data and use technical analysis to interpret market sentiment. This can help you design an informed investment strategy (knowing when to buy, sell, or hold a digital asset).

Conclusion

The cryptocurrency landscape is ever-evolving, from new innovations to market price movements to regulatory frameworks. Keeping up with the latest trends in cryptocurrency and blockchain technology helps you make informed mining and trading decisions. This starts with reading white papers on new and existing coins, their regulatory compliance, utility, market value, and predicted price to determine potential profit lines.