What major trends can we expect for 2024 and beyond as the industry grows and diversifies? Let’s examine some projections that may influence the terrain in the future.

CAPTURING THE SPECIAL CRYPTO WAVE 

Similar to other financial sectors, the cryptocurrency market operates in cycles. The market may see a spike in activity after the next Bitcoin halving, which is anticipated to occur in April 2024 and might result in a new all-time high by 2025. After 210,000 blocks have been mined, the Bitcoin network is set to trigger this predetermined event about every four years. 

The forthcoming halving of Bitcoin and other White Label Crypto Cards will reduce block rewards from 6.25 Bitcoin to 3.125 Bitcoin. This lower supply, combined with the growing demand for Bitcoin, usually drives price increases brought on by scarcity. 

According to CoinDesk, Standard Chartered Bank predicts that by the end of 2024, the value of Bitcoin will have increased to USD 100,000. The approval of multiple US-based spot Bitcoin ETFs is anticipated to fuel this spike; according to the bank’s Geoff Kendrick, these approvals are “likely to come sooner than expected.”

In addition to the upcoming halving of Bitcoin and the possible launch of ETFs, several additional variables are believed to have the potential to ignite a cryptocurrency boom, such as:

• Investment by institutions. Organizations like banks are ready to invest in cryptocurrencies, which might bring in more money for the market.
• Large-scale adoption initiatives. A cryptocurrency boom might draw an unprecedented amount of new consumers to up-and-coming companies, leading to broad acceptance throughout the industry.
• Make the switch to Web3. The transition from Web2 to Web3, exemplified by Nike’s NFT marketplace for SWOOSH footwear, strongly emphasizes smart contracts, decentralized apps and ecosystems, data ownership, and interoperability. This will introduce cryptocurrency to a wider audience.

CRYPTO PAYMENT UPSWING

The year 2024 may also bring about a rise in the acceptance of cryptocurrency payments in several industries, including consumer products and services, and the expansion of cryptocurrency payment gateways. According to a Deloitte business report, many firms acknowledge cryptocurrencies as valid payment methods. Technological improvements, user-friendly payment systems, and growing trust in the security features offered by blockchain are the reasons behind the growth in cryptocurrency payments. These developments make it much easier to incorporate bitcoins into regular transactions.

Despite Latin America having a smaller crypto economy than other countries, Xapo Bank CEO Seamus Rocca highlighted the quick grassroots adoption of a crypto economy in Argentina and Mexico, as reported by The Block. Xapo Bank, renowned for its pro-crypto policies, offers risk-free growth of Bitcoin with 1% yearly interest and secure, efficient cross-border transfers of stablecoins. 

METAVERSE CRAZE

It’s also predicted that in 2024, the immersive digital environment known as the metaverse will explode. Growth estimates suggest that by 2030, the cryptocurrency industry will have grown by an astonishing ten times, as shown in the infographic below. Dubai is setting the pace with its metaverse strategy, hoping to quadruple the number of blockchain and metaverse startups in the next five years. By 2030, this grand scheme aims to create over 40,000 virtual jobs and attract over 1,000 blockchain and metaverse-focused enterprises. The participation of digital behemoths like Apple, Microsoft, and Amazon reinforces the beginning of a revolutionary period in this field. 

ELECTRONIC DISCLOSURES IN THE CRYPTO SPHERE

Additionally, more regulatory clarity is anticipated in the cryptocurrency markets by 2024, which should boost institutional investors’ confidence in the safety and legitimacy of the sector. The US may fall behind Europe, as the latter just put the Markets in Crypto-Assets Regulation into effect in the middle of 2023. With a focus on user and investor protection, this law attempts to regulate distributed ledger technology and virtual asset usage within the European Union. 

ASSET TOKENISATION PROGRAMS

According to Colin Butler, Global Head of Institutional Capital at Polygon Labs, there could be a big spike in the tokenization of physical assets in the coming year, according to CoinDesk. Tokenization is converting any asset’s digital or physical rights into a digital token that can be used on a blockchain. This invention has a trillion-dollar commercial potential, according to estimates. Private equity funds and financial behemoths like JP Morgan and Hamilton Lane may drive tokenized fund development. From there, a wide range of next-generation tokenized assets like bonds, stocks, real estate, artwork, and even premium wines and cars may become possible. Increased accessibility to a wide range of assets is promised by tokenization’s special ability to allow fractional ownership. 

As the cryptocurrency scene develops, 2024 is crammed full of significant happenings. The industry appears set for development, from the predicted halving of Bitcoin to the emergence of cryptocurrency payments and the spread of the metaverse. A dynamic year characterized by greater institutional involvement and, ideally, a new era of financial innovation and accessibility was further set in motion by regulatory clarity and asset tokenization.