Will 2024 Be a Breakout Year for Cryptocurrencies?

You might think there’s not much time left before the year ends. However, the crypto market is famous for its volatility, and a lot can happen in days or weeks. If you decide to swap BTC to XMR, it can be a wise decision today but a less smart one tomorrow. Our guide discusses whether we can expect crypto growth this year, and which assets and sectors could explode sooner rather than later.

You can find interesting suggestions on which crypto will explode in 2024, but before focusing on assets, let’s discuss what could drive this growth. Here are the critical factors that the industry could use for a positive boost this year:

● Bitcoin halving. The halving event occurred in 2024, and BTC broke its all-time high shortly before that. The event reduces BTC rewards for mining new coins and increases Bitcoin’s scarcity. In theory, each day passed contributes to the increase in BTC’s value.

● Noticeable institutional investments. Approving crypto ETFs had a significant part in attracting institutional investors and increasing the pool of those interested in the market.

● Blockchain technology improvements. For example, Ethereum developers worked hard to present the 2.0 version of their blockchain. New projects unveil exciting features, and existing platforms work hard to improve their chains to enhance efficiency and scalability.

● Regulatory clarity. There’s a long way to go until a fully regulated market, but major economies are trying to offer a clear legal framework regarding the crypto industry. That attracts both individual and institutional investors and increases crypto adoption.

Here’s what everyone wants to know: which currencies can be the biggest hit during the time left this year? Some attractive options to look for include the following:

● Bitcoin. BTC is the industry leader and the gold of the crypto market. The halving increases the coin’s scarcity, so it wouldn’t be a surprise for Bitcoin to pursue a new ATH before the year ends.

● Ethereum. The undisputable leader in the altcoin market, ETH is still the best option for decentralized apps and NFTs. Although the coin has many competitors, Ethereum developers keep upgrading the network, which is now far more scalable and affordable than before.

● Layer-2 options. These are solutions built on top of foundational (layer-1) chains to improve their functionality. The majority, such as Optimism and Polygon, focus on scaling Ethereum and attracting its large user base.

● AI and blockchain synergies. SingularityNET is a platform allowing us to offer and monetize AI services. It’s an excellent example of how integrating AI can lead to innovative ideas for the industry, which results in projects that attract fresh user interest.

● Privacy coins. Monero and other privacy coins are having a tough time with regulatory compliance. Despite that, they have proudly kept their position in the crypto market for years. With more users looking for added privacy, the increase in these coins’ popularity wouldn’t be a surprise.

Whether you are an individual or an institutional investor, these sectors deserve your particular attention:

● Decentralized finance. More users are looking for options where banks or other central authorities won’t have an insight into their finances. The overall DeFi market is also developing quickly, with more users resorting to direct P2P services rather than doing business with centralized institutions.

● NFTs and gaming. Each non-fungible token is unique, and it presents a virtual or physical asset someone owns. For example, it could present the characters or lands owned in a game. Crypto gaming keeps developing, covering genres from fantasy and adventure to sports and strategy.

● CBDCs and stablecoins. Centralized authorities acknowledged that digital assets are a huge deal, which is why there are plans to release central bank digital currencies (CBDCs). These work similarly to stablecoins since they use a fiat currency as a peg. That could lead to more options being available to investors looking for stability in the volatile crypto market.

● Green cryptos. Energy efficiency became a huge concern for crypto since digital assets require computational power to run, and that leads to a carbon footprint. Algorand and currencies that deserve the energy-efficient reputation could attract more attention in the future.

The crypto market has had a good year overall, and there’s no reason to doubt it will have a fantastic finish. Bitcoin and Ethereum will remain safe investments. However, with the emerging trends and innovative projects, many other sectors are developing and becoming attractive options. It’s up to you to pick your next investment and try to guess which crypto will be the next thing that will generate an enormous buzz!