As the crypto winter subsides, businesses in the crypto space are anticipating less turbulent times ahead. This optimism is fueled by growing Bitcoin adoption and increasing institutional demand, which are driving innovation in the sector. Key trends to watch out for this year include scalability and compliance solutions.

Transaction speeds and costs pose significant challenges for both the Ethereum and Bitcoin networks. Rollup projects, which are designed to enhance scalability, are expected to be in high demand in 2024, according to Sergey Gorbunov, CEO of Axelar. He suggests that rollup development kits are “something to watch in 2024.”

Rollups are a type of layer-2 blockchain designed to improve scalability. They work by combining multiple transactions into a single batch outside the main blockchain (off-chain), significantly reducing the amount of data that needs to be processed and stored on the main chain (on-chain). This results in faster and cheaper transactions.

Gorbunov notes that projects currently scaling across this landscape include DeFi innovators like Frax and Lido, and leading DEXs like dYdX, PancakeSwap, and Uniswap. Decentralized infrastructure is another area expected to grow over the next few months. Frank Hu, COO of ByteTrade Lab, emphasizes the importance of decentralizing frontends and backends, including decentralized web-hosting and cloud-storage systems.

Behind these trends is the increasing involvement of institutional investors and traditional corporations in the crypto space. A recent survey revealed that 64% of current institutional crypto investors plan to increase their allocations in the next three years, and 45% of investors without crypto allocations intend to start investing within the same period.

Sandra Carter, COO of Unstoppable Domains, identifies projects offering interoperability between Web2 and Web3 as a potential growth area. She believes that crypto businesses will make the transition to Web3 easier and more accessible, unlocking the value currently trapped in Web2.

The approval of spot Bitcoin exchange-traded funds (ETFs) is also expected to drive business in 2024. Mauricio di Bartolomeo from lending protocol Ledn predicts that variations of Bitcoin ETF, such as leveraged and short ETFs, will flood the market over the next few months. The hype surrounding cryptocurrency is also expected to boost its use as collateral on crypto loans.

Another disruption is occurring in the realm of social media platforms, a foundation of the crypto industry. Juan Bruce, co-founder of DSCVR, believes it’s only a matter of time before decentralized social media platforms replace traditional ones. He notes that teams are building social platforms that enable crypto transactions in a social context for users and projects.

However, these growth prospects are not without challenges. Carter warns that the regulatory landscape could pose a significant risk for crypto businesses in 2024. She points out that while there are victories and signs of hope, there are individuals who are determined to prevent crypto from entering the mainstream. Despite the U.S.’s desire to be competitive in blockchain technology, regulators are doing their utmost to control its growth.

This News Article was automatically generated by Bob the Bot (AI)

Information Details
Geography North America
Countries 🇺🇸
Sentiment positive
Relevance Score 1
People Sandra Carter, Mauricio di Bartolomeo, Juan Bruce, Frank Hu, Sergey Gorbunov
Companies DSCVR, ByteTrade Lab, Coinbase, MakerDAO, Ledn, Axelar, Unstoppable Domains
Currencies Bitcoin, Ethereum
Securities None

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