Among the crypto business trends of 2024 are packages, corporate needs and Bitcoin-related solutions
Crypto businesses look forward to a less turbulent time after a long crypto winter, with institutional interest and growing Bitcoin adoption helping to drive innovation in the crypto space. Demand trends this year include scalability and compliance solutions, industry participants told Cointelegraph.
Transaction speed and costs are challenges for both the Ethereum and Bitcoin networks. Not coincidentally, package projects are expected to be in high demand in 2024, said Sergey Gorbunov, CEO of Acceler. He believes rollover kits are “something to watch in 2024.”
“We're starting to see a Web3 developer draft similar to what consumer-facing developers in SaaS enjoy,” Gorbunov explained of the growing availability of tools for developers working on blockchain scaling solutions.
Rollups are a type of layer-2 blockchain designed to improve scalability. They combine multiple transactions into one package outside of the main blockchain (off-chain). This greatly reduces the amount of data that must be processed and stored on the main chain (on-chain), resulting in faster and cheaper transactions.
According to Gorbunov, currently “projects moving to scale in this landscape include DiFi creators like Frax and Lido – and leading DEXs like dYdX, PancakeSwap and Uniswap”.
Decentralized infrastructure is another area expected to grow in the next few months. “Decentralization of front-end and back-end is a critical issue, including decentralized web hosting and cloud storage systems,” said Frank Hu, chief operating officer of BitTrade Labs.
Behind these trends is the increasing involvement of institutional investors and traditional corporations in the crypto space. According to a November study by Coinbase, 64% of current institutional crypto investors are expected to increase their allocations in the next three years, and 45% of crypto allocations without investors are planning to start investing in the same period.
Unstoppable Domains Chief Operating Officer Sandra Carter sees projects that interoperability between Web2 and Web3 as a major growth area. “There are so many people, brands and organizations in Web2 that haven't transitioned to Web3 yet, or even know about it. They need to take those first steps, and [crypto] Business Web3 knows there is a lot of value that can be unleashed, so they make it simpler and more accessible.
The approval of the Spot Bitcoin Exchange Traded Fund (ETF) will serve as a business driver in 2024. Bitcoin ETF variants, such as leveraged and short ETFs, are expected to flood the market, according to Mauricio Di Bartolomeo from Lender Protocol Lady. In the next few months. The hype surrounding the cryptocurrency is predicted to increase its use as collateral on crypto loans.
Additionally, one of the foundations of the crypto industry is being disrupted – social media platforms. DSCVR founder Juan Bruce believes it's only a matter of time before decentralized social media platforms find product-market fit to replace traditional ones, saying, “Crypto has always been driven by social media.”
“Groups, including ours, are building social platforms that help users and projects manage crypto transactions in a social context, not just on-chain,” Bruce told Cointelegraph.
But the prospects for growth are not without challenges. Carter believes that the regulatory landscape in 2024 will still pose significant risks for crypto businesses.
“There are so many variables when it comes to rules, and when there are victories and signs of hope [such as Ripple’s and Grayscale’s court victories], there are certain individuals who are determined to stop crypto from entering the mainstream. The United States wants to be competitive with blockchain technology, but regulators are doing everything they can to prevent or control it.
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