Outlook for a new crypto narrative in 2024

As 2024 approaches, we will enter a new era in cryptocurrency and blockchain. In this year, Bitcoin is about to usher in the high-profile halving event, which has become the focus of the market. However, apart from this high-profile event, we can also look forward to many other exciting developments that will shape the future direction of the entire cryptocurrency market.

Layer 2 continues to thrive

In 2023, Layer 2 solutions are on the rise, and chains such as Base, Linea, and Blast have become very popular. Rollups are widely recognized for reducing user costs, especially the zero-knowledge technology Rollup. Therefore, with the Dencun upgrade of Ethereum and the vigorous development of Layer 2, it will become a hot topic in 2024.

After the implementation of EIP-4844, Ethereum and its Layer 2 tokens are expected to experience significant growth, driven by lower fees and a renewed focus on scalability. The debate surrounding Sequencer’s decentralization, modularity and integrated development, as well as the consideration of the interoperability of different Layer 2 solutions, will further shape the industry landscape.

Although Layer 2 has attracted much attention, it still faces challenges. Scalability is still more of a slogan than a reality, with most chains unable to achieve their advertised throughput. Seamless interoperability between Layer 2 remains an ideal, not the norm. Additionally, many highly-hyped Layer 2 projects lack groundbreaking dApps or vibrant and diverse ecosystems.

Artificial Intelligence and Games

At the same time, Layer 2 is also making significant progress in the field of blockchain gaming. For example, SUI achieved a breakthrough in throughput, with SUI 8192’s daily transaction volume reaching 20 million. Base has attracted market attention by integrating social and entertainment elements through friend.tech. Ronin Network experienced rapid growth in November, thanks to successful partnerships with Axie Infinity and Pixels.

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Game NFT is expected to emerge in the public chain field, surpassing the status of art and collectible NFT. The encrypted game industry will usher in a more mature stage of development. At the same time, with the support of artificial intelligence generation technology, Web3 games will usher in active exploration. The continued improvement of gaming blockchain platforms such as ImmutableX, Ronin Network and Oasys will drive growth in this area.

On the other hand, the combination of artificial intelligence and blockchain will become an emerging field full of disruptive potential. While the infrastructure will take time to mature further, the growing trend of incentivizing AI resources through crypto token trading is expected to see strong growth in this area. Regulatory and product-market fit issues may be temporary challenges rather than insurmountable obstacles.

Taken together, 2024 will be a year of vigorous development in the field of blockchain and cryptocurrency, marking the prelude to a new era. Not just price fluctuations, but significant progress in practical applications. Enhanced infrastructure paves the way for wider adoption, and the emergence of new use cases lays a solid foundation for technological advancements and market dynamics of various blockchain platforms. In 2024, we will jointly witness the rapid development of this field and open a new chapter.