This article compiles Coinbase’s outlook for the cryptocurrency market in 2024, including market recovery, dominance of Bitcoin, leadership in Ethereum smart contracts, regulatory developments, institutional interest, and upcoming significant events that will shape the cryptocurrency landscape. The article was originally written by @Prithvir12 and translated and compiled by 白話區塊鏈.
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As the cryptocurrency market enters 2024, Coinbase’s outlook covers the overall market, in-depth analysis of major cryptocurrencies, and notable narratives. It also highlights the factors of overall economy and regulation, as well as the future of cryptocurrencies.
Table of Contents:
Market Recovery in 2023
Dominance of Bitcoin
Position of Ethereum
Layer1 and Layer2 Landscape
Tokenization
Decentralized Identity
Regulatory Developments
Institutional Adoption
Macro-economic Factors and De-dollarization
Web3 Games
Decentralized Real-world Resources
Improving User Experience in the Cryptocurrency Space
Validator Middleware and Customization
Bitcoin Halving Event
Expected Selling Pressure Impact
In 2024, the cryptocurrency space is poised for new prospects. Coinbase’s outlook covers the overall cryptocurrency market, in-depth analysis of major cryptocurrencies, and notable narratives. Additionally, it highlights the factors of overall economy and regulation, as well as the future of cryptocurrencies.
This outlook report mainly covers the following content:
Overview of the cryptocurrency market by Coinbase
Analysis of major cryptocurrencies
Notable narratives to watch
Factors for overall observation and regulation
The future of cryptocurrencies
User @Prithvir12 provides an interpretation of this, and the following is the main text:
In 2023, the total market capitalization of the cryptocurrency market experienced significant recovery, effectively doubling compared to before. This is seen as a clear signal that the market is emerging from the long “crypto winter”.
Bitcoin has reclaimed its dominance in the cryptocurrency market, surpassing 50% of the total market capitalization for the first time since April 2021.
This change indicates an increasing preference for Bitcoin among both retail and institutional investors.
Ethereum continues to lead in the smart contract platform, occupying a significant portion of the market. The report shows that approximately 57% of the total locked value in decentralized finance (DeFi) is on the Ethereum network.
People have clearly shifted their attention to blockchain platforms and modular blockchain architectures for specific industries. While Ethereum’s layer 2 scaling solutions are growing, the main network remains the primary hub of activity.
The report highlights the vibrant interest in tokenization, especially in the traditional finance sector. This has been confirmed by the significant increase in the tokenization of assets such as US Treasury bonds.
There is a strong emphasis on the development of decentralized identity solutions and decentralized infrastructure networks. These technologies are expected to provide secure and efficient identity verification and resource management systems.
The report details major legislative developments in the United States, including the potential approval of exchange-traded funds (ETFs) for spot Bitcoin trading platforms. Clear regulations in the regulatory aspect are predicted for 2024.
Institutional interest in cryptocurrencies continues to grow rapidly. The report points out that institutional investors participating in the cryptocurrency market are diverse, including major funds and high-net-worth individuals.
The report discusses the long-term impact of global de-dollarization and currency system transitions. It suggests that cryptocurrencies may play an important role in a more decentralized financial world.
The gaming industry, with a current market size of around $250 billion, is expected to experience significant growth. Blockchain technology may occupy a considerable portion of this market, particularly as it provides new modes of game development and player participation.
The report focuses on DePIN and highlights the disruptive potential of blockchain in these areas. It implies the possibility of blockchain technology playing a central role in managing and distributing real-world resources in the future.
Efforts to enhance the user experience in the cryptocurrency space are emphasized in the report. Key advancements such as account abstraction and the implementation of “gasless transactions” are mentioned as critical progress to make cryptocurrencies more accessible.
The report also discusses innovative validator middleware solutions, including re-collateralization and DVT. These developments are crucial for the scalability and security of blockchain networks, indicating the maturity of underlying technologies.
The report emphasizes the upcoming Bitcoin halving event scheduled for April 2024. This event is expected to have a significant impact on the supply dynamics of Bitcoin, potentially affecting its price and market perception.
The report identifies some selling pressure factors, such as the repayment of Mt. Gox creditors and asset liquidation by FTX. These events may introduce a substantial amount of Bitcoin and other cryptocurrencies into the market, influencing prices.
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Tags:
2024 Outlook
Coinbase
DID
Decentralized Identity