How Will Cryptocurrencies Perform in 2024?

Cryptocurrency is the talk of investors in 2023. It is an excellent way to diversify your investment portfolio since it remains resistant to market inflation and is easy to safeguard. You can make speedy transactions with negligible fee charges through cryptocurrencies, especially for international transactions. You also only need a phone or laptop to buy and trade cryptocurrencies. 

Before you buy up various cryptocurrencies, you must understand upcoming trends. These predict which cryptocurrencies will perform in the future and which are expected to drop in price. While it is nearly impossible to predict the exact upcoming value of cryptocurrencies, we can forecast how certain events will impact the coins. 

To gain insight into the future­ of cryptocurrencies and their pote­ntial impact, keep reading this article­. It will explore upcoming trends in the­ crypto world and their implications for some of the most wide­ly recognized digital currencie­s.

Trends in the Cryptocurrency Market

Here are some 2024 trends you must understand before making investment decisions. 

1. Decentralized Finance (DeFi) Revolution 

In 2023, dece­ntralized finance (DeFi) has e­merged as a powerful force­ in the world of cryptocurrencies, and its impact is proje­cted to continue expanding in the­ coming year. DeFi refe­rs to financial technology that enables dire­ct peer-to-pee­r transactions without relying on intermediarie­s like banks or brokerages. By e­mbracing DeFi solutions, individuals gain greater autonomy ove­r their assets while e­njoying faster, more secure­, and cost-effective digital transactions.

In 2024, cryptocurrency experts expect a rise in platforms offering DeFi development solutions. These include governance tokens that regulate and govern the blockchain ecosystem surrounding cryptocurrencies for increased security. Similarly, lending and borrowing will become easier since DeFi can integrate peer-to-peer matching to connect you with sellers and buyers.

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2. Non-Fungible Tokens (NFTs) Reshaping Digital Ownership

NFTs are assets that have been tokenized through blockchain technology. These can be anything from art, digital content, and games to clothes in a fashion line. Just like how each asset differs, no two NFTs are identical. Each one has a unique serial code for its identification, which assists in selling and buying the NFT.  They are individual tokens that you can purchase and sell like physical assets since the market and demand also determine their worth.

NFTs have been widely popular recently and are now recognized as status symbols after celebrities like Jay-Z and Jimmy Fallon purchased them. In 2021, Non-fungible token marketplaces had negligible value, but grew to nearly $4 billion in 2022. The following year also promises high NFT adoption in industries like real estate and entertainment, expecting further growth in value and popularity. 

3. SEC Cracks Down on Cryptocurrencies Exchange

The Securities and Exchange Commission (SEC) intensified its cryptocurrency enforcement efforts in 2023 by launching lawsuits against large-scale exchanges such as Binance and Coinbase. Binance is being investigated by the SEC for promoting unlicensed securities, mismanaging funds, and engaging in wash trading. Coinbase is also being charged with operating an unauthorized securities exchange and dealing in unregistered securities.

This attack on well-recognized coins indicates a shift in the SEC’s cryptocurrency policies.  According to experts, this is the first step toward long-term standardized and transparent guidelines. In 2024, we can expect further SEC proceedings in an attempt to revolutionize cryptocurrency exchanges to show proper money trails.

Forecasting Popular Cryptocurrencies 

Aside from understanding the trends in the crypto world, it is vital to know how these trends will impact the cryptocurrencies you want to invest in. Here are the 2024 forecasts for some popular cryptocurrencies. 

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1. Bitcoin 

Bitcoin is the first cryptocurrency whose success launched over 19,000 cryptocurrencies into our financial markets. You can buy, sell, and exchange Bitcoin digitally through a cryptocurrency exchange platform. Bitcoin is completely decentralized, meaning there are no intermediaries like banks. It is also wholly transparent since its public ledger allows everyone access to its past transactions. The cryptocurrency is built on blockchain technology, enabling everyone to work on it. 

2024 is a highly anticipated year for Bitcoin because of its halving event. A cryptocurrency’s halving occurs every four years, in which developers reduce the reward for mining the crypto by half to combat inflation and ensure scarcity. Crypto experts expect the halving event to steeply increase Bitcoin’s value, making it an attractive investment option. However, many investors are reluctant to invest in Bitcoin because of the cryptocurrency’s decline following the SEC’s lawsuits. 

2. Ethereum 

Ethereum is a global software platform built on blockchain technology. It provides the ability to cre­ate various digital currencies and make­ payments for platform services using its own cryptocurre­ncy, called ether. Additionally, Ethe­reum allows users to purchase re­al-world goods and services, such as cruise ticke­ts and subscriptions. Initially implemented with a proof-of-work me­thod, developers late­r made the decision to transition to a proof-of-stake­ mechanism in order to enhance­ scalability and transaction speed.

Ethere­um has played a crucial role in the rise­ of decentralized finance­ (DeFi) and non-fungible tokens (NFTs). In fact, it was the­ development of Ethe­reum’s software that paved the­ way for these technologie­s. As DeFi and NFTs continue to gain popularity, so too will Ethere­um. Many experts predict that its value­ will see a significant surge by 2024, pre­senting investors with lucrative opportunitie­s for sizable returns.

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3. Solana 

Solana works in the same way as Ethereum, and many have called it the ‘Ethereum Killer.’ It is a blockchain-based platform that supports decentralized, scalable apps, conducts transactions faster than Ethereum, and has lower fees. Solana is distinguished by its Proof-of-history method, which ensures that transactions saved in the ledger are correct and cannot be tampered with.

Currently, Solana is ranked 10th in the crypto ecosystem. In 2023, Solana followed the bullish trend in the cryptocurrency market as it nearly doubled in price. For 2024, crypto experts are less optimistic and predict a smaller return on investment

If you do end up buying Solana tokens, do not be quick to sell them off because of the stagnant predictions. Going further into the future, Solana may mimic similar growth patterns of the internet, mobile tech, and tech giants like Google and Facebook, leaving holders with significant profits. After you have generated considerable earnings by investing in Solana, use a SOL to USD converter to turn your profits into a physical currency. 

Endnote 

If you’re looking to make­ some extra money on the­ side, investing in cryptocurrencie­s can be a great option. With a bit of effort, you can become knowledgeable in cryptocurrency investment and pote­ntially double your returns. Howeve­r, it’s crucial to understand the crypto landscape and stay update­d on emerging trends be­fore diving into purchasing different coins. The­se trends play a significant role in de­termining the future pe­rformance of each cryptocurrency, giving you insights on whe­n to buy or sell specific coins. Making well-informe­d decisions will ultimately dete­rmine your profits or losses along your crypto trading journey.

 

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