Top Promising Cryptocurrency Trends to Follow in 2024
The cryptocurrency industry has been facing many ups and downs throughout its development. The cryptocurrency markets are still highly volatile – crypto hypes are commonly replaced by crypto winters. Apart from that, the crypto world is periodically shaken by new scandals and reputation losses. Despite all of these misfortunes, the crypto market recovers and returns to its bull phase again, allowing many to boost their financial returns almost instantaneously.
But what to expect from crypto in 2024? Allied Market Research predicts that the global cryptocurrency market size, estimated at $1.49 bln in 2020, reached $4.94 bln by 2023, growing at a CAGR of 12.8% in the period of 2021 to 2030. Meanwhile, the cryptocurrency industry continues to develop, offering crypto users more investment and trading options as well as new opportunities for crypto startups.
In this article, we’ll have a look at the latest crypto innovations and the most promising crypto trends that will be popular in 2024.
Top Cryptocurrency Tendencies Overview
According to the Morgan Stanley Wealth Management Global Investment Office report, cryptocurrencies experience such peaks and troughs every four years. Meanwhile, MoffettNathanson analyst Lisa Ellis expects that the crypto winter will be over in 2024 and 2025 will be the peak of the present cryptocurrency cycle.
All this means that those who are thinking to invest in building their own crypto start-up or invest in crypto, have to play a long-term game and be ready when the time of high crypto rates comes. That’s why for the companies that consider turning to crypto and Blockchain application development services, it’s so important to follow various crypto trends and implement them in their crypto solutions as early as now to reap the most benefits from the crypto before the next recession starts.
Here are the most promising cryptocurrency trends to consider in 2024.
In 2021, NFTs hit the market and became an instant sensation among art creators, crypto investors, and the general public. The main idea of NFT (non-fungible tokens) is to ensure immutable proof of ownership for a particular piece of art, e.g. a digital image, a song, a video, etc. This way, the person who has bought an NFT acquires the rights to an art object which is documented in the blockchain. An NFT works as a copyrights protector and with the help of this technology, people can create, purchase, or trade their art online. That said, NFTs aren’t limited to only digital artworks. They have great potential for further development as NFTs can be used for proving the ownership of physical objects, e.g. buildings, cars, lands, and more.
Currently, the technology is in its initial stage of development, though it has already managed to generate much talk online. Everyone from unknown artists to world-popular stars started creating NFTs and trading them online, leading to the uncontrolled creation of NFT collections. Therefore, Binance is trying to regulate NFT trading on its platform, imposing restrictions on trading NFTs with a value of less than $1,000.
The NFT market quickly gained 2 mln of active users in 2021 and then lost 17% of trading activity by the end of 2022. This is explained by the hype created around the technology. Nevertheless, the industry proponents see “the sign of a resilient industry, despite the difficulties of 2022”. world-leading brands, including MasterCard, Starbucks, Disney, Nike, and many others have already created their NFTs. The technology is expected to head for gaining more stability over the next few years.
ETF stands for the exchange-traded fund and is a newly emerged stock exchange instrument on the crypto market that allows stock traders to operate several investment securities like a mutual fund. One fund can include shares or equities of various companies, different currency instruments, or commodities matched by certain characteristics. This allows investors to short markets, gain leverage, and exclude short-term capital gains taxes.
The ETFs are quickly gaining popul