We have reviewed insights from Forbes, Coinbase, Binance, Pantera Capital, a16z, and other reputable sources to identify the 8 key trends most frequently mentioned by analysts in the cryptocurrency markets for 2024.
Understanding the most promising trends will help you make more informed decisions in the cryptocurrency market.
Learn more about the key trends:
1. Bitcoin and Its Ecosystem in 2024
In 2023, Bitcoin’s price continuously grew from the very first day. The increase gained momentum in October (indicated by arrow #1 in the chart below), fueled by the anticipation of a spot Bitcoin ETFs launch.
The official approval came on January 11, 2024, causing Bitcoin’s price to surge to $48,000 (indicated by arrow #2):
✓ The U.S. Securities and Exchange Commission (SEC) approved 11 applications for Bitcoin Exchange-Traded Funds (ETFs), with major players like BlackRock, Fidelity, and Valkyrie among the fund issuers.
✓ “While we approved the listing and trading of Bitcoin ETFs today, we did not approve or endorse Bitcoin. Investors should remain cautious about the myriad risks associated with Bitcoin and products whose value is tied to crypto,” said Gary Gensler, commenting on the decision.
✓ ETFs have made investing in Bitcoin more accessible and secure, attracting more investors and assets to the cryptocurrency world.
In the first four months, the net inflow of funds into Bitcoin ETFs exceeded $12 billion, according to Morning Star data:
Following the ETF approval, another significant event occurred – the halving.
The halving took place on April 19, 2024 (Bitcoin’s price experienced a pullback from the yearly high, as shown by arrow #3 above). The reduction in mining rewards is believed to decrease market supply, which, with stable demand, typically leads to price increases over the following months and beyond.
Therefore, the combination of reduced supply (halving) + increased demand (via ETFs) sets the stage for a potential rise in BTC prices, which could boost the entire cryptocurrency market, given that Bitcoin accounts for over 50% of its capitalization.
A similar boost may come from the approval of Ethereum ETFs.
For more details, see Bitcoin Forecasts for 2024.
2. The Synergy Between AI and Cryptocurrency
In 2024, the AI boom led to NVDA stocks soaring by over 124%. This trend has also made a significant impact on the cryptocurrency market.
Modern AI technologies open new horizons for crypto projects, enhancing their security, efficiency, and accessibility.
Let’s explore the main trends in this area.
The Synergy of AI and Blockchain
AI enhances blockchain systems by making them more efficient and secure. For instance, AI can be used to create automated market makers that provide liquidity in DeFi markets, allowing users to trade assets with minimal costs.
According to CoinMarketCap, the market capitalization of AI-related cryptocurrency projects reached $40 billion in the first five months of 2024.
One standout in this trend is Near Protocol, a scalable blockchain platform with its native token, NEAR. This project empowers users to utilize artificial intelligence to boost the efficiency and functionality of dApps.
Another notable example is FETCH (Fetch.ai – an open platform providing tools for developing innovative AI-driven products). The FETCH token’s value increased by over 210% in the first five months of 2024.
Participation in the Creation of New Models
Currently, AI models like ChatGPT can only be developed and managed by a few tech giants due to the enormous computational power and training data required. However, blockchain technology enables the creation of various projects where anyone can contribute and get rewarded for providing computational power or new data sets, making new models more accessible.
Moreover, AI offers several opportunities for interaction with the crypto world and the creation of new trends:
Combating deepfakes. Blockchain technology can be used to trace the origin of content we see online.
Investment strategies. AI-based tools help investors automate the management of their crypto portfolios, analyze market data, and predict price movements.
Democratization. As highlighted by the internal conflict at OpenAI, crucial AI technologies affecting billions are controlled by a few individuals, which raises ethical concerns and the potential for manipulation.
Fraud protection. AI algorithms can monitor and analyze transactions in real time, quickly identifying suspicious activity and preventing potential threats.
DeFi innovations. According to a16z, AI also contributes to creating sophisticated and efficient financial products in the blockchain-based insurance and lending sectors.
AI can develop games and ensure fair rules for all participants.
New crypto projects. As mentioned in our article on creating your own tokens, ChatGPT can be used to write smart contract codes.
Artificial intelligence and blockchain are incredibly versatile technologies, and their potential applications are only limited by the creativity of developers.
3. Tokenization of Real Assets
Tokenization of real-world assets (RWA) is an increasingly popular process of assigning unique digital tokens to physical assets. These tokens can be traded and used in decentralized finance (DeFi) applications.
For example, Tether (USDT) is a well-known stablecoin that represents a physical U.S. dollar in the cryptocurrency world. Tether is the third-largest cryptocurrency by market capitalization, and the company claims that every USDT issued is backed by reserves, though this is disputed.
Blockchain technology enables the tokenization of company shares (although this is not favored by the SEC), real estate, antiques, cars, watches, discount coupons, and other assets.
Advantages of RWA:
Ownership of assets can be fractional;
Tokens can be traded globally;
More potential buyers and sellers;
High levels of transparency and security.
In 2024, the Ethereum blockchain finalized ERC-3643, a protocol for tokenizing real-world assets. This protocol aims to become a standard and increase the capitalization of tokenized assets. Widespread adoption of this protocol is likely to add value to the Ethereum network and support the future price of ETH.
4. The Evolution of NFT
Non-fungible tokens (NFTs) have been one of the hottest topics in the world of cryptocurrencies. While interest in NFTs peaked in 2021-2022 (when NFTs first appeared), 2024 shows that the trend is still going strong, continuing to evolve and transform.
One example is the Milady project, based on an anime-style NFT collection. In 2024, the project’s market capitalization saw exponential growth. Though short-lived, it was impressive.
NFT trends in 2024:
Gaming items and virtual objects. For instance, Pixels Ronin NFT is a unique project in the world of digital assets that combines art, game mechanics, and blockchain technology. This project has attracted attention from both collectors and crypto enthusiasts due to its innovative approach and vibrant visual aesthetics. An update for the project is expected in 2024.
Development of marketplaces within exchanges. Google Trends indicates significant interest in Binance NFT, a platform where new collections are released almost daily in 2024.
Music and media content. Musicians and media content creators are using NFTs to release and sell their works. Platforms like Audius and Royal allow musicians to monetize their tracks, giving them more control and transparency in their relationships with their audience.
Education. NFTs are being used to create unique certificates and diplomas that are impossible to forge.
5. Layer 2 Technologies and New Protocols
Layer 2 technologies and new protocols aim to address scalability, performance, and transaction cost issues in existing blockchains. In 2024, these technological solutions are gaining popularity, offering innovative approaches to improving blockchain infrastructure.
Key developments in Layer 2 technologies include:
Rollups – one of the most popular Layer 2 solutions. This technology aggregates multiple transactions off-chain and periodically records their results on the main blockchain, significantly reducing load and transaction costs.
State Channels allow participants to conduct transactions off-chain and then record the final result on the main blockchain. This is especially useful for micropayments and frequent transactions, such as in gaming or streaming platforms.
Sidechains are independent blockchains that run parallel to the main blockchain and can interact with it. They provide flexibility for developers to experiment with new features without risking the main blockchain.
Example. COTI (Currency Of The Internet) – this project uses innovative architecture and Layer 2 technologies to ensure high speed, low fees, and scalability for payment systems.
In February 2024, there was a surge in activity related to Garbled Circuits – an innovative privacy-enhancing feature integrated into the COTI blockchain. This led to a doubling of the COTI price within 3 days.
6. Restaking – A New Crypto Trend of 2024
Restaking is a process where users can redeploy their staked tokens to participate in multiple protocols and applications simultaneously.
Unlike traditional staking, where tokens are locked to secure a single network, restaking allows assets to be utilized in various contexts, enhancing their utility and potential returns.
One of the leaders in this innovative staking method is EigenLayer, which enables the reuse of assets earned from staked ETH.
EigenLayer has raised $165 million from Blockchain Capital, Polychain, Coinbase Ventures, and other major venture firms. In 2024, EIGEN tokens might become available to a wider range of investors and be listed on cryptocurrency exchanges.
7. Games and GameFi – Top Trend of 2024
According to CoinMarketCap, the market cap of gaming tokens hit nearly $30 billion in the first five months of 2024.
Coinbase analysts have observed that users are skeptical about Play-to-Earn models when looking at cryptocurrency trends for 2024-2025. This pushes developers to experiment further, including with NFTs, even though surveys show that many gamers are skeptical about them.
Analysts from 101Blockchains point out that some GameFi projects rely on enticing users with easy profits and Ponzi schemes, which can lead to less engaging gameplay. The sector’s growth will depend on improvements like more detailed tokenomics.
Since many projects have been in development for 2-3 years, game releases in 2024 might provide insights into how well GameFi products can attract and retain players.
Tip: Check out our article to learn more about the gaming project Notcoin!
8. Meme Coins in the Crypto World
As of early summer 2024, meme coins have a combined market cap of over $50 billion, according to CoinMarketCap.
Often created with no serious technical or economic goals, meme coins grab attention due to their humorous appeal and the backing of celebrities (like DOGE and Elon Musk) and online communities. This can lead to dramatic price movements.
For example, the PEPE coin, created in 2023 based on popular memes featuring Pepe the Frog. In the first five months of 2024, the PEPE/USDT price increased by over 1000%, reaching a market cap of $6 billion.
Another example is the MAGA coin (Make America Great Again), linked to the 2024 US presidential election. Less than a month after being listed on Poloniex, MAGA’s price surged by 44,000%! This highlights the potential for huge gains with meme coins, though it comes with substantial risks.
Advantages of trading meme coins
High returns: potential for significant price increases in a short period.
Accessibility: available 24/7 on various cryptocurrency exchanges from anywhere in the world.
Decentralization: no control by central banks or governments.
Innovative opportunities: participation in new and promising technological projects.
Ease of entry: simple registration and initiation of trading.
Risks of trading meme coins
High volatility: sharp price fluctuations can lead to substantial losses.
Security risks: possibility of hacking attacks and theft of funds.
Regulatory risks: unstable regulatory frameworks in different countries.
Lack of liquidity: some meme coins may have low liquidity, making them hard to sell.
No investor protection: absence of mechanisms like deposit insurance.
Difficult to master: requires an understanding of technical analysis and trading mechanics.
Market manipulation: potential for manipulation by large players (whales).
Trading meme coins and other cryptocurrencies offers the chance to profit from daily trends in the volatile crypto market.
However, be aware of the risks — make sure to undergo effective training before attempting to capitalize on these trends!
How to Become a Meme Coin Trader?
To minimize risks while learning cryptocurrency trading, use the ATAS Market Replay simulator. This module of the ATAS platform utilizes historical data to recreate market conditions, allowing beginners to practice trading as if it were happening in real time.
To start using the cryptocurrency trader simulator, download, install, and launch the ATAS platform for free – then:
During your training in trading crypto using the Market Replay simulator, you can:
adjust the playback speed, and pause;
test your strategies, monitor signals from over 400 indicators;
of course, use Chart Trader and other features to trade on the built-in demo Replay account and then analyze your performance;
analyze volumes in the Level II order book, for instance, using the DOM Levels indicator;
develop a range of skills to identify cryptocurrency market trends not only in 2024 but also in the long run.
ATAS enables you to download tick history from different markets, not just cryptocurrencies, providing you with a comprehensive foundation for identifying patterns in price and volume interactions.
Conclusions
In the first five months of 2024, the cryptocurrency market capitalization surged by over 50%, exceeding $2.4 trillion, which is greater than the combined market capitalization of Google, Meta, and Amazon at that time. If the bullish trend from 2023-2024 continues into 2025, the crypto market could surpass the market capitalizations of Apple, Microsoft, and Nvidia.
With the diversity of the cryptocurrency market, there are daily opportunities to identify stable trends in both directions, allowing you to profit from price differences.
Download ATAS.It is free. Once you install the platform, you will automatically get the free START plan, which includes cryptocurrency trading and basic features. You can use this plan for as long as you like before deciding to upgrade to a more advanced plan for additional ATAS tools. You can also activate the Free Trial at any time, giving you 14 days of full access to all the platform’s features. This trial allows you to explore the benefits of higher-tier plans and make a well-informed decision about purchasing.
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Information in this article cannot be perceived as a call for investing or buying/selling of any asset on the exchange. All situations, discussed in the article, are provided with the purpose of getting acquainted with the functionality and advantages of the ATAS platform.
