AI and Bitcoin reign supreme, but what will happen in 2024?
In a comprehensive report released today, Bybit, the world’s third-largest cryptocurrency exchange by trading volume, examines the trends shaping the cryptocurrency landscape in 2023 and provides insight into what might unfold in 2024. 2023 was a year of significant developments in a variety of fields. The cryptocurrency sector is characterized by the dominance of AI tokens and the pivotal role of Bitcoin.
AI tokens shine
The most notable performer in 2023 will undoubtedly be AI. Artificial intelligence tokens have taken center stage, surpassing cryptocurrency tokens. With the advent of ChatGPT technology, AI came into the spotlight and attracted market attention. Both the existing and later ChatGPT AI tokens have performed well throughout the year.
Bitcoin: The driving force
Bitcoin, often referred to as the king of cryptocurrencies, has played a pivotal role in driving the cryptocurrency market’s bullish rally in 2023. Anticipation surrounding the SEC’s approval of a spot Bitcoin ETF began with BlockRock’s filing in September 2023, well ahead of the broader cryptocurrency. The rally started in early October. In 2024, the market is eagerly awaiting developments such as Bitcoin’s ZK rollup and the much-anticipated Bitcoin halving.
Another key focus for 2024 will be monitoring capital flows into and out of the newly approved spot Bitcoin ETFs in the U.S. to serve as a barometer for institutional adoption.
Aether: A Strong Contender
Ethereum closely mirrored Bitcoin’s performance in 2023. BlackRock’s filing of a spot Ether ETF in mid-November 2023 only gained momentum after the spot Bitcoin ETF was approved, but it had a positive impact. Some analysts suggest that Ether could potentially surpass Bitcoin in 2024 if a spot Ether ETF gains more regulatory traction.
DeFi Resilience
Decentralized finance (DeFi) has had an exceptional year, with INJ emerging as the clear winner. However, it is worth noting that decentralized exchanges have lagged the broader DeFi rally. Looking ahead to 2024, a decentralized physical infrastructure network known as DePIN could surpass DeFi in driving adoption of real-world blockchain technology.
Layer 1 and Layer 2 tokens
Layer 1 tokens performed best in 2023, while Layer 2 tokens underperformed. 2024 will see continued consolidation in the layer 1 sector, with Ethereum, Solana, and Avalanche leading the way. Layer 2 tokens may see a resurgence when major projects begin airdropping tokens.
NFT/Metaverse and GameFi tokens may continue to underperform in 2024, primarily due to a lack of sector innovation. However, IMX stands out as an exception with market expectations surrounding the launch of the zkEVM chain.
BRC-20 token and AI token
Like AI tokens, BRC-20 tokens have gained enormous popularity in 2023. The BRC-20 token is expected to continue performing strongly in 2024 as Bitcoin undergoes additional community development to explore its utility. Nonetheless, AI tokens lacking real-world use cases may see increased volatility in the coming year.
Meme Token: Riding the Bull Market Wave
The performance of meme tokens closely reflects trends in the broader market. These tokens have played an important role in driving on-chain transactions and community participation within the mainnet ecosystem that hosts them. Notable examples include BONK’s value creation for Solana and Avalanche’s meme token purchase program.
Overall, Bybit’s insightful report highlights outstanding trends for 2023 and provides a glimpse into the cryptocurrency landscape in 2024. Last year saw AI and Bitcoin reign supreme, but next year holds the promise of continued innovation, regulatory developments, and potential changes to cryptocurrencies. Sector dominance. Market participants will undoubtedly be watching these developments closely as they navigate the dynamic world of cryptocurrencies.
Also Read: OrangeX Launches $5 Million Innovation Fund to Revitalize Bitcoin Ecosystem
