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TOP 5 Trends & Narratives of 2024 Bull Run That You Should Know

Daniel Urbánek
Daniel Urbánek
March 20 at 23:34
News, Analysis

Explore the most anticipated 2024 Bull Run trends in crypto and web3. BTC Halving is fueling interest in new technologies like DePINS, Restaking, and more.

Since the beginning of 2024, the crypto market has been filled with positivity and enthusiasm, partially because of the huge success of BTC ETFs, which are driving the demand all the way up. Seeing that we already have the catalyst, now is the time to examine where the attention (and capital) could turn next. So far there have been several new technologies and narratives getting a lot of traction this year, read on to find out what the next moonshot could be.

TL;DR:

  • The beginning of 2024 seems to be fueled by high demand for BTC Spot ETFs. Market enthusiasm is also supported by the upcoming BTC halving in April 2024 .
  • Solana showcases its potential as a dynamic and promising crypto platform. Latest craze is fueled by its technological edge and the viral appeal of meme coins. 
  • Decentralized Physical Infrastructures (DePINs) are getting a lot of traction from major VCs. Many projects utilize distributed computing power to facilitate decentralized AI training.
  • Restaking protocols of Ethereum offer users higher capital efficiency on staking while securing multiple other protocols within a single platform
  • Tokenization of Real World Assets (RWAs) allows for creating on-chain representations of off-chain assets. This increases liquidity and lowers barriers for investing.

BTC Halving 2024 - Fueling Greed and Positive Outlook

We are all waiting for it so I might as well mention it here. The next Bitcoin halving event, which is expected to occur in April 2024, is highly anticipated because historically it had a profound price effect.

The enthusiasm from expecting the price to skyrocket is clearly present in the markets right now, that is why we have to ask ourselves: Is the halving already priced in? To answer this question it is important to realize what effect causes the price action after halvings. In theory, mining difficulty increases, which results in less BTC being added to the circulation. If the demand stays steady (or increases), we should expect the price to rise, because of decreased issuance.

Read More: 2024 Crypto Forecast: Insights and Strategies to Stay Ahead of the Market

Of course, many other factors are at play here, however, the price after halving will be heavily reliant on keeping the demand steady. Fortunately, spot BTC ETFs just lowered investment barriers for many retail and institutional investors, therefore allowing for a strong capital inflow. So far, halving remains a strong positive indicator, which paves the way for more speculative investments and innovative tech - such as the following examples.

A New Era of Solana Powered by Meme Coins

As the crypto market braces for the 2024 bull market, Solana emerges as a new platfor for the meme coin traders. Its technological advantages, characterized by low transaction fees and high-speed processing, challenge established norms and position it as a strong contender against giants like Ethereum.

Tokens such as Myro (MYRO), Bonk Inu (BONK), and Dogwifhat (WIF) or Slerf (SLERF) have become drivers of current interest in this blockchain platform. These meme coins, emblematic of both speculation and community spirit, drive trading volumes and highlight Solana's capacity to host a thriving ecosystem.

In the narrative of the 2024 bull market, Solana stands out with a compelling blend of technology (its unique Proof of History concensus mechanism and more) and culture. Some traders and investors predict that we could see Solana surpassing Ethereum in market capitalization and reaching more than $600 price tag.

DePINs - Decentralized Physical Infrastructure

The concept of Decentralized Physical Infrastructure is something that has already existed since the inception of Bitcoin, however, just now DePINs are beginning to form a sector or category of their own. The idea is that there exists a strong demand for computational power and data (which can be later utilized to improve businesses, etc.) - such demand has been so far filled by centralized tech providers, such as AWS, Google, IBM, and so on.

Decentralized Physical Infrastructure focuses on fulfilling this demand with a distributed network of physical devices owned by users. Examples include room temperature measurement, data storage, geolocation data, or computational power. Users connect their hardware device to a decentralized network and start gathering data (or providing computational power) for which they are rewarded with monetary incentive (tokens of the network).

DePIN projects have already received strong interest from VCs (Coinbase, Pantera, Blockchain Capital, and others) suggesting a potential for wider adoption. 

Interesting DePIN Projects:

  • Bittensor - a decentralized network for sharing computational power used to train AI models.
  • Hivemapper - street-view mapping network using proprietary camera devices
  • Helium - incentivized 5G network coverage hotspots 

Restaking

Restaking is kind of the next evolutionary stage of Liquid Staking Derivatives (LSDs) , because it allows users to secure multiple networks and protocols at once, therefore earning higher yield. This is done algorithmically by staking tokens on one network, creating a liquid derivative, and later transferring this derivative elsewhere on the network. This cycle can repeat multiple times, increasing the yield with each restaking, but also increasing slashing risk.

The EigenLayer protocol on the Ethereum mainnet is most often associated with this feature. Restaking can be done both natively or via Liquid Restaking Tokens (LRTs) - these yield-bearing tokens are analogous to Liquid Staking Derivatives (LSDs) with multiple restaking cycles. Another interesting Restaking project on Ethereum is Pendle Finance, which allows yield farmers to separate yield-bearing tokens from the yield they provide.

Tokenization of Real World Assets

Tokenization of real-world assets ( RWAs ) is revolutionizing blockchain technology by transforming tangible and intangible assets into digital tokens, thus making a wide array of assets like real estate, art, and intellectual property accessible on the blockchain. Projects such as Polymath, Centrifuge, Propy, Swarm, and Polymesh are at the forefront of this emerging narrative, showcasing the potential to democratize investments previously reserved for the affluent.

The key appeal of tokenized RWAs lies in their ability to make investments more accessible, transparent, and efficient. By digitizing assets, the process not only enhances liquidity but also opens up new avenues for participation in investment opportunities. However, the path is marked by challenges, notably in establishing regulatory frameworks and legal guidelines to ensure that digital tokens accurately represent and protect physical ownership rights.

Bonus: New Blockchain and AI Integrations

The blockchain and AI intersection has been heavily present in the crypto public space since 2022. Various projects have attempted to combine AI and blockchain in a way to improve the qualities of one another. The majority of these new projects have failed to bring a unique value and fell into oblivion. Two years later, however, the market seems to mature, and the demand for blockchain AI products is getting higher.

One of the use cases we already talked about is using distributed computing to power resource-intensive AI training. But the innovations do not stop there. Noteworthy initiatives include Cyware Labs, which integrates AI and blockchain to bolster cybersecurity, and Figure, founded by SoFi's Mike Cagney, utilizing these technologies to streamline home equity loans.

The intersection of AI with tokenization is also unlocking new avenues for asset liquidity and accessibility. The Graph (GRT), Render Token (RNDR), and SingularityNET (AGIX) are pioneering projects at this frontier, leveraging AI to enhance blockchain functionality and market intelligence. 

The Bottom Line

The 2024 Bull Run in crypto and web3 is fueled by the BTC Halving, spotlighting new technologies like DePINs, Restaking, Tokenization of RWAs, and Blockchain-AI integrations. During this period of growth, we will surely witness the emergence of entirely new and highly demanded narratives. The narratives mentioned in this article are the ones that currently present the greatest potential for growth and are getting the most attention from the public.

As we move forward, staying informed and flexible will be the key to operating in these conditions of high volatility and uncertainty. It is also important not to get overwhelmed by emotions and to maintain a cool head while making investment choices.

Disclaimer: The content of this piece reflects the writer's opinion. This article is not intended to provide financial advice and is meant solely for entertainment and educational purposes. Investing in cryptocurrency involves significant risk. Capital is at risk, and returns are not guaranteed. Always conduct your own research.

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