10 narratives that will shape crypto in 2024

Author: Lorena Nessi Translation: Plain Blockchain

2024 is a big year for the crypto industry, full of exciting trends and moments that continue to spark heated discussions in the community.

From memecoin-driven headlines to the tokenization of real-world assets, the whole year is full of stories that push blockchain into new areas.

Telegram games make cryptocurrencies more accessible to ordinary users, while prediction markets and liquid staking tokens provide new ways to interact with digital assets.

Add rollups, modular blockchains, and the race to deal with the quantum threat, and 2024 is undoubtedly an extraordinary year.

These ten trends show the vitality and innovation that drive the crypto world forward.

1. The rise of Memecoin

Memecoin is an unprecedented social phenomenon. Although some people regard them as simple, trivial, and even question their legitimacy as digital assets, believing that they are bad financial decisions or just the product of short-lived trends and viral marketing, they have occupied an unignorable place in the crypto ecosystem, integrating humor, community participation, and innovative digital value creation and broader cultural movements.

1) Grassroots movements and celebrity effects

These tokens respond to various social, political and economic situations and reflect the spirit of culture. They rely on celebrity culture and are driven by influential figures, often increasing their visibility.

Memecoin often leverages grassroots movements, in which communities unite around common ideas and values, inspire collective action and form viral trends. Memecoins also highlight the power of participatory culture, enabling users to drive token adoption and shape narratives through collective efforts. They can also sometimes be just trivial trends.

2) Memecoins in 2024: Milestones and Influence

In 2024, memecoins solidified their position as a defining force in the crypto space. Tokens heavily influenced by the Shiba Inu (SHIB), such as Neiro (NEIRO) and FLOKI Inu (FLOKI) — the latter of which launched a debit card — and PepeCoin (PEPE), which draws on internet memes and nostalgia, show how humor and cultural relevance can inspire significant financial activity.

A notable example of memecoin influence in 2024 was President-elect Donald Trump’s appointment of Elon Musk to lead the newly formed Department of Government Efficiency (DOGE). The advisory body’s mission is to streamline the operation of the federal government and reduce inefficiencies, and its acronym is a deliberate nod to Dogecoin (DOGE), which Musk is widely known to support.

3) The intersection of technology, culture and society

Memecoin reflects the intersection of technology, culture, society and politics, showing how seemingly whimsical ideas can challenge traditional values ​​and innovation. For many, they are a stepping stone into the world of crypto, providing an accessible entry point into technology-driven digital assets.

2. The growth of prediction markets

In 2024, decentralized platforms like Kalshi and Polymarket have gained widespread attention for allowing users to predict events and earn rewards. These platforms cover topics as diverse as sports results, election results, and cryptocurrency prices, using blockchain technology to ensure transparency and security.

Kalshi saw over $100 million in bets during the 2024 U.S. presidential election, demonstrating the potential of prediction markets to gauge public sentiment. However, the growth has also drawn criticism. Some analysts argue that low liquidity and susceptibility to manipulation undermine the reliability of prediction markets as a forecasting tool.

Regulatory scrutiny has also intensified. Kalshi won a legal battle with the Commodity Futures Trading Commission (CFTC), enabling it to offer contracts on political events, but concerns about legality and market manipulation remain. In addition, some have expressed moral objections, questioning the ethics of gambling on elections.

One ​​user X expressed her concerns about election gambling, posting: "I think what the CFTC is pushing is actually the right thing. Why gamble on elections? I personally don't like the idea."

Despite these challenges, the rise of prediction markets highlights the need for decentralized solutions to real-world problems, solidifying their position as an important trend in the crypto space in 2024.

3. Liquid Staking Tokens (LSTs) and Liquid Re-staking Tokens (LRTs)

In 2024, Liquid Staking Tokens (LSTs) and Liquid Re-staking Tokens (LRTs) gradually emerged and achieved greater influence based on early innovations. Although EigenLayer launched its mainnet in mid-2023, its impact became more evident in 2024 as re-staking adoption grew.

By mid-year, over 33.8 million ETH had been staked, demonstrating growing market confidence in Ethereum’s Proof of Stake (PoS) model and the viability of liquid staking.

LSTs allow users to stake assets while maintaining their liquidity, allowing for decentralized finance (DeFi) activities such as borrowing and trading. LRTs further enhance this concept by allowing validators to re-stake staked assets to other networks or support services such as rollups, increasing its functionality and rewards. Despite the surge in adoption in 2024, achieving full adoption in all areas remains an ongoing process.

Key Platforms and Competition

EigenLayer has made leading progress in re-staking, with over 4.1 million ETH re-staking on its platform by April 2024. Other platforms such as Lido Finance, Rocket Pool, and Frax Finance have also made important contributions, expanding the application of LSTs and integrating them into the DeFi ecosystem. These projects have played a vital role in driving innovation and accessibility in the staking space.

Progress in 2024 has made LSTs and LRTs key tools in the staking ecosystem, laying the foundation for future developments in blockchain technology and DeFi integration.

4. Quantum Computing Threat

In 2024, discussions on the impact of quantum computing on blockchain security became a focus. While quantum computing technology offers great potential for scientific breakthroughs and innovation, it also poses a significant threat to the core of cryptocurrency: security.

1) Quantum Threat

Quantum computers harness the power of quantum mechanics to potentially break the encryption algorithms that protect blockchain networks. Algorithms like Shor's algorithm are theoretically able to decrypt public-private key pairs, compromising the confidentiality and integrity of transactions. Imagine if a malicious attacker was able to steal a private key, they could conduct a double-spending attack, or launch a 51% attack to take control of a blockchain network.

This potential consequence has prompted industry leaders to proactively address this challenge. Professor Massimiliano Sala of the University of Trento in Italy's speech at a Ripple event served as a wake-up call, highlighting the upcoming "Q Day," when quantum computing could render traditional encryption ineffective.

2) Finding quantum-resistant solutions

Major companies like IBM and Google are leading the advancement of quantum technology while promoting the development of quantum-resistant cryptography. This race has spawned projects like the National Institute of Standards and Technology (NIST) post-quantum cryptography standardization process, which aims to create encryption methods that remain secure even in the face of quantum computing breakthroughs.

3) Quantum defense of blockchain

The blockchain community itself is also actively exploring "quantum-safe" solutions. Lattice-based cryptography and quantum key distribution (QKD) are emerging technologies designed to protect blockchain communications from quantum attacks.

Although the industry is taking positive steps, the transition to quantum-resistant infrastructure remains a complex and resource-intensive challenge. Google's latest quantum chip, Willow, has made significant progress in error correction, laying the foundation for larger-scale quantum computers. Although the power of this technology is undeniable, machines capable of breaking encryption are still far from widespread popularity.

Therefore, ensuring the long-term security of cryptocurrencies by developing and adopting quantum-resistant solutions is critical to the continued growth and stability of the crypto industry.

5. Decentralized Physical Infrastructure Networks (DePINs)

In 2024, decentralized physical infrastructure networks (DePINs) have become a major trend, connecting blockchain technology with real-world assets. These networks have demonstrated the potential to reshape the energy, transportation, and logistics industries.

Examples include decentralized wireless networks like Helium, blockchain-powered ride-sharing platforms, and supply chain tracking systems. DePINs bring greater transparency, improved security, enhanced accessibility, and community engagement.

Despite these advantages, challenges such as interoperability, scalability, and regulatory uncertainty remain.

As DePINs develop and regulatory frameworks gradually follow up, they are expected to change the way industries manage and access physical infrastructure, providing more fair and efficient solutions for the future.

6. The popularity of trading robots and artificial intelligence agents

In 2024, the crypto market witnessed a surge in the popularity of automated trading robots and artificial intelligence agents. Designed to execute trades based on predefined algorithms or real-time market analysis, these tools have completely changed the landscape of crypto trading.

Key Trends and Innovations

AI-Powered Trading Assistants/Agents: AI-powered trading assistants, such as Near’s AI Assistant, have become valuable tools for traders of all kinds. Additionally, Coinbase and Replit’s Based AI Agent templates enable developers to create crypto bots for automated trading and asset management. As trading bots and AI agents grow in popularity, so too do concerns about market manipulation and unfair advantages.

Leading Trading Bots: Truth Terminal, an AI chatbot that rose to fame in the crypto community for promoting a meme-based religion (the “Goatse Gospel”). The launch of the GOAT meme coin was fueled by a large Bitcoin donation, highlighting the potential impact of AI on crypto trends. While Truth Terminal itself cannot trade, its influence has sparked debates about AI ethics, especially in the volatile meme coin market.

The increasing use of trading robots and artificial intelligence agents has undoubtedly reshaped the landscape of crypto trading. Although these tools offer significant advantages, they still need to be used with caution and a deep understanding of their limitations. As technology continues to develop, balancing automation and manual supervision will be key to ensuring responsible and ethical trading practices.

7. Application of Rollups in Layer2 Expansion

In 2024, Rollups became a cornerstone solution to Ethereum's scalability challenges. They solve network congestion and high fees while maintaining Ethereum's security. As a Layer-2 solution, Rollups moves transaction processing off-chain and packages it into a batch and submits it to the main chain, enabling faster and cheaper operations.

Vitalik Buterin’s Standards

In September 2024, Ethereum co-founder Vitalik Buterin emphasized that Layer-2 networks must meet “Phase 1” decentralization standards by 2025. These standards include anti-fraud mechanisms, security committee governance, and upgrade delays to ensure trust and transparency.

Rolling aggregation solutions like Optimism and zkSync have reached billions of dollars in locked value (TVL) while supporting DeFi, non-fungible tokens (NFTs), and decentralized applications (dApps).

It is worth noting that challenges such as interoperability and achieving full decentralization remain. However, rolling aggregation solutions continue to redefine Ethereum’s scalability in 2024, establishing their key position in the future growth and adoption of the Ethereum network.

8. Tokenization of Real World Assets (RWAs)

In 2024, the tokenization of real world assets (RWAs) is developing rapidly, creating new opportunities for investors and businesses. Here is an overview of the current situation:

1) Raised Credit Market Growth

The global raised credit market has reached $1.7 trillion and has expanded at a compound annual growth rate (CAGR) of 17% over the past five years. However, only about $500 million in assets have been tokenized, indicating that there is still huge room for growth in tokenizing these assets.

2) Global Tokenization Potential

The global physical asset market exceeds $867 trillion, and tokenizing these assets could significantly enhance the economic influence of the crypto industry. By 2027, tokenized assets could account for 10% of global GDP, with the potential to expand the market size to $24 trillion (World Economic Forum).

3) Industry Adoption and Initiatives

DeFi platform Ethena invested $46 million in tokenized RWA funds, including products like BlackRock's BUIDL and Superstate's USTB. Solana-based marketplace AgriDex works with Stripe's Bridge and Circle's USDC to reduce cross-border agricultural trade costs from 2-4% to about 0.5%. Latin American banks such as Littio are adopting the Avalanche blockchain to manage RWA vaults, demonstrating the global appeal of tokenization.

4) Institutional Initiatives

UBS Group, the largest financial holding company in Switzerland, launched its first tokenized fund, "UBS US Dollar Money Market Investment Fund Token", and released it on the Ethereum blockchain, marking a major shift in institutions to tokenized assets. The Monetary Authority of Singapore is exploring tokenization through Project Guardian and setting standards for tokenized assets.

China is promoting its digital asset plan by issuing fully digital structured products on the blockchain, reflecting the region's demand for tokenization.

Hadron, launched in November 2024, is an asset tokenization platform launched by Tether, designed to simplify the creation, management and trading of tokenized assets. Hadron aims to be an easy-to-use solution that can tokenize a variety of assets, from real estate to financial securities. As RWAs tokenization continues to grow, Hadron is expected to redefine the global financial system, improve efficiency, transparency, and provide new investment opportunities for all walks of life.

9. The rise of modular blockchain

In 2024, a revolution is taking place in the blockchain field, and the emergence of modular blockchain is driving this change. This innovative approach is expected to revolutionize scalability, efficiency, and customization in the blockchain ecosystem.

1) Modular blockchain paradigm

Modular blockchain is different from the traditional monolithic architecture, which bundles all functions in a single layer. Modular blockchain adopts a modular design that breaks down the blockchain into multiple specialized components. Such functional separation provides blockchain with greater flexibility, scalability, and room for innovation.

2) Modular blockchain projects and application cases

Modular blockchains represented by Ethereum are well known. In recent years, some promising modular blockchain projects have emerged, each solving specific challenges and opportunities:

Celestia: The project focuses on creating a decentralized data availability layer to ensure that all transaction data is accessible to all nodes in the network. This allows other modules (such as the execution layer) to be built on Celestia and take advantage of its secure and scalable data infrastructure.

Fuel: The project is developing a modular execution layer that can process transactions in parallel, significantly increase throughput and reduce transaction fees. Fuel's modular design facilitates integration with other blockchain components, creating a versatile and efficient ecosystem.

Dymension: The project aims to build a modular blockchain network capable of supporting a variety of decentralized applications (dApps). By separating consensus, execution, and data availability into different layers, Dymension aims to achieve high scalability and high security.

10. Telegram Games: Attracting Users into the Crypto Field

In 2024, Telegram became a key platform for crypto games. Independent developers launched "play to earn" (P2E) games that combine entertainment and crypto rewards. Telegram's friendly robot infrastructure and large user base provide fertile ground for these projects.

Hamster Kombat: Players manage a crypto trading platform operated by hamsters and earn HMSTRToken on The Open Network (TON). Although player participation and token value fell sharply at the end of the year, it demonstrated the appeal of P2E games, attracting up to 3 million players.

Catizen: This game allows users to earn CATIToken through creative gameplay. Although the concept resonates with many people, the volatility of the token price reflects the challenges of combining games with the crypto market.

PAWS: As a rising star in the P2E ecosystem, PAWS has attracted more than 25 million players through a virtual pet care model, accumulating a large number of users in just a few days.

Although these games have faced criticisms such as repetitive gameplay, excessive time investment, and the need for crypto investment to maximize rewards, they have played a key role in the crypto story of 2024. Their success highlights the potential and complexity of integrating games with digital assets, becoming an important chapter in the evolution of the P2E ecosystem.

CItizen Games | Source: Citizen

11. Conclusion

2024 is full of stories that reshape the crypto industry and lay the foundation for future growth. Memecoin attracted audiences through humor and financial innovation, while prediction markets and decentralized physical infrastructure networks (DePINs) demonstrated how blockchain can solve real-world problems. Telegram games attracted a large number of new users to the crypto field through an engaging "earn while playing" model.

Liquidity staking and re-staking tokens strengthen Ethereum's staking ecosystem and provide users with more flexibility. Rollups solve scalability issues, making Ethereum faster and more efficient, while modular blockchains introduce a whole new way to build decentralized systems with greater customizability.

The industry has also taken steps to prepare for the era of quantum computing, with quantum-resistant solutions becoming a key focus. The tokenization of real-world assets bridges traditional finance and blockchain, unlocking exciting opportunities and shaping the digital future. AI agents and trading bots change the way users interact with the market, driving automation and efficiency.

These developments highlight both innovation and challenges in the blockchain world, demonstrating its potential to have a profound impact in technology, finance, and culture. How the future will develop, only time will tell.

Q&A

1) What are the main crypto trends in 2024?

2024 highlighted several transformative trends, including the rise of memecoins, the popularity of prediction markets, advances in quantum-resistant cryptography, and the growth of decentralized physical infrastructure networks (DePINs). These stories played a key role in shaping the crypto space.

2) How will quantum computing impact the crypto industry in 2025?

Quantum computing poses a significant challenge by threatening traditional encryption methods used in blockchain. To address this challenge, the industry has accelerated the development of quantum-resistant solutions, such as lattice-based cryptography and quantum key distribution (QKD), to ensure the long-term security of blockchain networks.

3) Why are memecoins so influential in 2024?

Memecoins like FLOKI and PEPE continue to capture the attention of the crypto community through their combination of humor, cultural relevance, and community-driven initiatives. They have also attracted attention through high-profile endorsements, such as Dogecoin being mentioned in a government efficiency project involving Elon Musk.

4) What role do AI and trading bots play in the crypto market in 2024?

AI-powered trading bots and agents are revolutionizing crypto trading by automating the decision-making process. These tools increase market participation, but also raise ethical and regulatory questions about market manipulation and fair trading.