Perspectives of Crypto and Web3 in 2024
2023 was a wild ride for the cryptocurrency industry, with major factors influencing both price and development of crypto.
Market Cap Hit $1.4 Trillion, Up 70%
Year-on-year gains for crypto amounted to 70% in 2023, spurred on by price growth seen late in the year. Bitcoin reached a price of $42k in the final days of December 2023, more than double the price seen at the beginning of the year.
As has always historically been the case, higher Bitcoin prices meant a higher market cap all-around, bringing the cap to a $1.4 trillion market cap and revitalizing altcoin trading as new investors flocked to get in on the action.
Three-Year Low in Crypto Fundraising
Despite higher prices towards the end of the year, fundraising activity was muted as venture capitalist firms expressed caution in the midst of uncertain macroeconomic conditions and low trading volumes in the first three quarters.
Factors like the war in Ukraine, supply-chain issues lingering from COVID-19, and global inflation on the rise have led to a hands-off attitude in crypto and tech in general, with many layoffs in Silicon Valley and blockchain firms.
Surge in AI Tools Helped Revitalize NFT Space
NFTs have seen something of a comeback, perhaps aided by the increased ease at which anyone can now create a crypto asset, crypto token, or the artwork for an NFT collection with the help of artificial intelligence. Commonly-available AI tools like ChatGPT and Dall-E, among many others, can help users code and debug crypto tokens, blockchain networks while even generating complex artwork that previously needed a human artist to create.
It’s likely that this emerging technology will play an increasingly larger role in crypto as time goes on. AI-related tokens rose from a market cap of $8 billion at the start of 2023 to $28 billion.
Ethereum Shapella Fork Upgrade
Shapella, derived from the fusion of Shanghai and Capella, represents the concurrent implementation of two pivotal network enhancements within the Ethereum ecosystem. These upgrades are slated to refine the code on Ethereum’s primary mainnet layers: the consensus layer (beacon chain) and the execution layer.
Post the Merge, the process of ether staking has been unidirectional, allowing users to stake but not withdraw. Shapella aims to rectify this limitation, empowering validators and users to seamlessly unstake their ether on the network.
The Ethereum Shapella upgrade holds the promise of granting users access to potentially unstake more than 18 million ETH currently secured on the beacon chain, the cornerstone of Ethereum’s consensus layer network.
The key component of this Ethereum upgrade is Ethereum Improvement Proposal (EIP) 4895, designed to facilitate validator staking withdrawals on the network. Additionally, developers have incorporated supplementary specifications within Shapella to optimize transaction fees for specific activities on the network.
Meme Coin Renaissance
The year 2023 witnessed a renewed interest in meme coins, driven by multiple factors such as heightened mainstream recognition of cryptocurrencies and endorsements from prominent figures. Noteworthy additions to the meme coin landscape during this period included Pepe (PEPE), Milady (LADYS), and CorgiAI (CORGAI).
51% Reduction in Crypto Hacks
Crypto security breaches in 2023 reached approximately $2 billion. While this is a massive figure, it represents a 51% drop in hacks and theft in crypto from the previous year, painting a positive view of the future as we enter 2024. If crypto companies can continue to learn from the mistakes of years gone by and continue to improve security, it’s possible that we will see even more drastic reductions in losses to bad actors and cybercriminal gangs in the coming year.
Crypto in 2024
The case for a bull run in 2024 is strong, with prices increasing, regulation on the way, adoption on the rise, and a massive influx of technological advancements that make crypto easier to use and understand than ever before.
At Grineo, we’re working to make crypto as spendable as regular cash. Australian residents can sign up for the Grineo card to instantly start spending stablecoins in stores or withdraw stablecoins from any ATM in the world.
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