Bankless’ 5 Predictions for Cryptocurrencies in 2024. This article is sourced from Bankless’ column article “David’s 2024 Predictions,” compiled, translated, and written by BlockBeats.
(Table of Contents)
1. EigenLayer’s TVL Surpasses $10 Billion
2. 1 Million ETH Burned
3. Airdrops Exceed $5 Billion in 2024
4. ETH L2 Narrative Shifts Towards Optimized VM and Parallel EVM
5. Solana Experiences Outages
Bankless co-owner David Hoffman presents his five predictions for cryptocurrencies in the new year, including the continued rise in popularity of EigenLayer, surpassing a Total Value Locked (TVL) of $10 billion. Additionally, Ethereum is expected to burn 1 million ETH, airdrops will cover the entire ecosystem with tokens worth $5 billion distributed to early participants in crypto protocols. Attention will be focused on the progress of Arbitrum, Optimism, and other EVM chains in terms of virtual machine optimization. Lastly, the rapid influx of users to Solana may result in outages. The translated version by BlockBeats is as follows:
The first week of 2024 has begun, and you will see many predictions about the trends of cryptocurrencies this year. Of course, most of these predictions will ultimately be far off, but in the frenzy of a bull market, it’s just fun to make bets, and I can’t help but share my own views.
So, here are my five predictions for cryptocurrencies in 2024.
My first prediction is that the popularity of EigenLayer will continue to rise throughout 2024. I have been emphasizing this point repeatedly, and as an advisor to the project (disclosed by Bankless), you may dismiss my enthusiasm, but you shouldn’t think that way.
EigenLayer’s mainnet is scheduled to launch in the second or third quarter of 2024, with several billion dollars’ worth of ETH deposited into its staking contract. Then, the AVS service will start rolling out and begin generating additional income for ETH. Initially, the extra ETH earnings may be negligible, but they will also gradually increase within EigenLayer’s first 24 months. Sub-prediction: If EigenLayer conducts a token airdrop in 2024, it will be the largest airdrop in terms of funds given to users in history.
Within the 461 days since the merge, Ethereum has already burned 335,000 ETH.
In 2024, Ethereum will burn 1 million ETH. In the frenzy of a bull market, we simply haven’t seen the full effect of PoS + EIP1559. The furnace will become very hot.
This is the season of airdrops. In 2024, I believe tokens worth $5 billion will be distributed to early participants in crypto protocols.
Airdrops will cover the entire ecosystem; Solana, Ethereum, Ethereum Layer 2 networks, and newer alternative chains will attempt to attract new users through airdrops and incentives.
In 2024, many Layer 1 solutions focused on VM optimization will enter the stage, including Monad and Sei. The Eclipse project plans to introduce SVM to Ethereum’s mainnet in 2024.
The metanarrative surrounding L2 VMs will shift from the EVM to VMs that prioritize execution optimization. The Ethereum community will request Monad to become an L2, but Monad will reject this request.
What are the important things to watch for? How far have Arbitrum, Optimism, and other EVM chains progressed in terms of virtual machine optimization and how far they have deviated from the EVM?
The scalability of Solana and how fast it is doesn’t matter. If Solana attracts too many users too quickly, flaws will be discovered.
This may not be catastrophic, but it will be an eye-opening experience (hopefully). It will also be a testament to Solana’s success rather than its technical shortcomings.
Related Reports:
– BanklessDAO’s Controversial Request for Funds from Arbitrum: Bankless Founder: Community Autonomy Has Nothing to Do with Me
– Bankless Founder: 5 Major Challenges Facing the Future of Cryptocurrencies
– Bankless: Why Are Cross-Chain Bridges So Fragile? Quick Understanding of the Security of Three Verification Methods