The cryptocurrency market is set to make an entry into 2024 with a pace. We are approaching the countdown to Bitcoins halving, which will have an impact, on the fate of spot ETF approval. Additionally the EthereumCancun upgrade is on the horizon indicating a revitalization of the Ethereum ecosystem. As a result we can expect growth in sectors such as DeFi, GameFi, L2 and NFTs. This will then pave the way for Bitcoin spot ETFs and the halving market with expectations that this bull market will arrive earlier and last longer compared to ones.
Furthermore it is certain that in 2024 there will be an interest rate cut by the Federal Reserve. This cut plays a role in fostering the bull market of 2024 2025. The impending Bitcoin halving and its effect on related coins like BCH and BSV are already causing surges in their prices. BCH has reached $269.3 while BSV has broken through $70. Similarly Ethereums Cancun upgrade closing in is boosting sectors such as L2 and DeFi. Coins like ETC and ZEC are expected to rise due to their halvings scheduled for 2024 well. The market may experience some chaos again. Understanding trends and selecting coins based on their narratives remains essential.
Lastly it is worth noting that halvings for Zen, BCH, BSV and ZEC hold importance; investing in them could lead to success along with coins, like XEC, XLM, EOS.
There are also sectors performing well such as Layer 2. Recently coins, like OP and ARB experienced surges, followed by a performance from METIS, which brought attention to small cap Layer 2 concept coins like GEL and CTSI. Additionally MATIC has reached its point in the six months. Despite the Cancun upgrade not impacting ETHs price Layer 2 technologies have greatly benefitted.
Apart from Layer 2 advancements the Binance ecosystem is also thriving. The announcement of $LEVER joining the BRC20 launchpad resulted in its price doubling. There are rumors circulating about coins like $HOOK, BNX and $BSW embracing BRC20 standards without any announcements. These developments are boosting projects within the Binance ecosystem. However it is essential to focus on strategizing for future trending sectors and leading cryptocurrencies than simply chasing trends.
Hotspots in the Market:
- Ethereum (ETH) experienced a surge followed by L2s such as METIS, OP, ARB as DeFi coins like LDO and PENDLE.
- BSV witnessed a 50% increase over two days due to speculation around its halving event.
- Social gaming tokens like XPET (governance token) and BPET (gas token) saw surges with XPET experiencing deflationary characteristics.
- While the SOL ecosystem overall showed a decline in performance certain parts such, as NEON, Honeyland and Realy experienced surges.
Here are the current trends and developments, in the space:
- Web3 wallets are set to launch on Binances B platform leading to an increase in BRC20 applications.
- Layer 2 solutions like IMX and OP show promise for cryptocurrencies while magic SKL METIS are gaining traction among ones.
- Traditional mainstream coins are predicted to experience a rise in the quarter of year due to halving expectations.
- OP has reached highs. With the upcoming Cancun upgrade the ARB ecosystem is flourishing. This could redirect attention towards Ethereum and Layer 2 technologies.
- Investing in some OP ecosystem coins is recommended as they are relatively scarce in the market. Here’s a brief analysis of a few of these coins; VELODEOME; The pioneering AMM protocol market maker on OP with a mover advantage.
- SONNE: The lending protocol within the OP ecosystem offering decentralized, non custodial peer, to peer lending solutions.
- CELO: The CELO team plans to migrate to Layer 2 using OP technology as they follow the trend set by OP.