Looking ahead to 2024, Binancethe prominent global blockchain and cryptocurrency platform, outlined through a report a perspective on trends which, according to his analysis, will have to be taken into account next year.
“2023 revived fervor in the cryptocurrency universe. The growing adoption of digital assets propelled “real” applications that merge the realms of crypto and traditional finance, such as payments and remittances. Although it is early to confirm a definite return of a bull market“There are signs that suggest an optimistic outlook,” says Min Lin, regional vice president of Binance for Latin America.
Based on recent events and metricsthe Binance Research team offers a detailed analysis of the main crypto trends to follow in 2024. The study explores key developments related to Bitcoin (Ordinals, ETFs and Halving), DeFi, stablecoins and NFTs, projecting a promising outlook for the ecosystem in the coming year.
Bitcoin
The year 2023 was an eventful year for Bitcoin, with significant progress on several fronts. Within the crypto-native field, the Ordinales protocol emerged, enabling innovations like enrollmentoften called “Bitcoin NFTs“, which gained prominence. In the traditional financial sphere, optimism surrounding the likely approval of Bitcoin exchange-traded funds (ETFs) in the US has captured the attention of more institutional investors towards the crypto ecosystem.
As of December 2023, BTC market capitalization increased by 162% year-on-year, outperforming several key assets and indices, both traditional and crypto. Some notable Bitcoin developments to watch in 2024 include:
- Approval of BTC spot ETF in the US.
Although the possibility of regulated BTC spot ETFs in the US has been under consideration for a long time, 2023 saw notable advances. In August, US courts ruled in favor of Grayscale in its dispute with the Securities and Exchange Commission (SEC) over the conversion of its Grayscale Bitcoin Trust (GBTC) into a spot BTC ETF.
This positive ruling prompted other players, including BlackRock, the world’s largest asset manager, along with Fidelity and Invesco, to file their own BTC spot ETF applications in the following months. Currently, heThe SEC is reviewing a total of 13 BTC Spot ETF applicationswith close deadlines from January 2024 to August of the same year.
Bitcoin halving
The next Bitcoin halving is scheduled for April 2024, which will decrease the block reward from 6.25 BTC to 3.125 BTC. This periodic drawdown introduces greater scarcity into BTC, supporting its narrative as a “digital gold” or safe-haven asset.
Ordinals and inscriptions
A significant development in 2023 was the arrival of Ordinals and Bitcoin registrations. This protocol allows individual satoshis (sats) to be tracked, assigning them unique identifiers. These sats can be “registered” with varied content, generating the well-known “Bitcoin NFTs”.
Ordinals and inscriptions led to the emergence of BRC-20 tokens, enabling the creation and transfer of fungible tokens in Bitcoin for the first time in history. After an initial frenzy and subsequent slowdown, November saw a significant resurgence in activity, reaching an all-time high with more than 8,300,000 total registrations, a 362% increase from October’s lows.
The arrival of the Ordinals has injected excitement and innovation into the Bitcoin ecosystem, marking a significant period in its history as we move towards 2024.
stablecoin offering
The supply of stablecoins, indicative of the capital available for investments in cryptoassets, showed a positive change for the first time since the first quarter of 2022 in the last quarter of 2023. Watching this metric closely in the coming months will be crucial to discern whether this change represents a sustained upward trend or was temporary.
The final months of 2023 altered sentiment in the cryptocurrency industry. Amid rising expectations, new players entering the market and intensifying enthusiasm, it is essential to keep an eye on key indicators as we move towards 2024.
Source: Ambito
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