Asset management firm Vaneck has unveiled its 15 crypto predictions for 2024. They include the U.S. recession’s arrival, the approvals of spot bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC), and bitcoin’s historic rally, “potentially spurred by political events and regulatory shifts following a U.S. presidential election.”
15 Crypto Predictions for 2024
Asset management firm Vaneck published its 15 crypto predictions for 2024 on Thursday. The first prediction concerns the U.S. economy slipping into a recession and the U.S. Securities and Exchange Commission (SEC) approving spot bitcoin exchange-traded funds (ETFs). Vaneck wrote on social media platform X:
The U.S. recession will finally arrive, but so will the first spot bitcoin ETFs. Over $2.4 billion may flow into these ETFs in Q1 2024 to support bitcoin’s price.
Vaneck is among the companies that have filed an application to launch a spot bitcoin ETF with the SEC. Other applicants include Blackrock, the world’s largest asset manager, Fidelity Investments, Ark Invest, and Bitwise.
The second prediction centers on the impending Bitcoin halving in April 2024, anticipating “minimal market disruption and a post-halving rise in bitcoin’s price, with significant gains for some low-cost miners.” The third prediction, which sees a dramatic surge in bitcoin’s price, states:
Bitcoin will make an all-time high in Q4 2024, potentially spurred by political events and regulatory shifts following a U.S. presidential election.
The next couple of predictions are about Ethereum. Vaneck predicts that ETH will outperform major tech stocks in 2024, although it won’t flip BTC. However, Ethereum’s market dominance will face challenges from other smart contract platforms. Moreover, the implementation of EIP-4844 (proto-danksharding) “will reduce transaction fees and improve scalability for layer 2 chains such as Polygon, Arbitrum, Optimism, and others,” Vaneck described.
The sixth prediction states that non-fungible token (NFT) activity “will rebound to an all-time high with Ethereum leading and Bitcoin gaining traction via the Ordinals protocol, shifting the ETH-to-BTC NFT issuance ratio to 3-1 by the end of 2024.” Expecting crypto exchange Binance to lose its number one position for spot trading, and competitors — such as Okx, Bybit, Coinbase, and Bitget — contending for leadership, Vaneck shared in its seventh prediction:
Coinbase’s futures market may exceed $1 billion daily volume as regulated index inclusion becomes key.
The eighth prediction explains that the market capitalization of stablecoins should surpass its previous peak and reach a new high above $200 billion. This growth will be accompanied by a resurgence in USDC’s market share, signifying a transition towards increased institutional adoption, particularly within emerging Layer 2 chains. The ninth prediction details that decentralized exchanges (DEXs) “will hit all-time highs in spot trading market share, driven by fast blockchains like Solana and wallets enabling automated transactions, promoting on-chain trading and self-custody.” The 10th prediction states: “Remittances will boost blockchain use, with ‘Bitcoin Staking’ on the Lightning Network offering yield opportunities through new, user-friendly staking tools.”
Vaneck also anticipates the emergence of a smash-hit blockchain game exceeding 1 million daily players, propelling Immutable X’s market capitalization upwards “with key releases and the Immutable Passport, streamlining wallet usage and enabling wider adoption.”
The 12th prediction highlights that Solana (SOL) “is projected to become a top 3 blockchain by market cap, TVL, and users, potentially surpassing Chainlink’s TVS [Total Value Secured] with its Pyth oracle, as Defi [decentralized finance] TVL surges and ETF interest grows.”
Furthermore, the asset management firm predicts a surge in adoption for decentralized physical infrastructure (Depin) networks in its 13th prediction. “New accounting standards will boost corporate crypto holdings. Coinbase will report Layer 2 revenue as Base Protocol grows. By 2025, a major financial entity may launch a quasi-public blockchain with public chain connectivity,” the 14th prediction outlines.
The final prediction by Vaneck relates to know-your-customer (KYC) compliance. The asset management firm detailed:
KYC-compliant Defi apps, led by Uniswap, will likely surpass non-KYC ones, attracting institutional volume and enhancing protocol fees, which may boost Uniswap’s token value.
What do you think about Vaneck’s 15 crypto predictions? Let us know in the comments section below.