Research Summary
The report provides a comprehensive analysis of the crypto market trends and predictions for 2024. It covers the performance of various cryptocurrencies, including Ethereum and Solana, and discusses the potential impact of Web2 companies on the Web3 space. The report also highlights the growth of DeFi exchanges and the increasing dominance of Cosmos.
Key Takeaways
2024 Crypto Predictions
- Ethereum Layer 2 and alt Layer 1 Activity: The report predicts that Ethereum Layer 2 and alt Layer 1 activity will significantly outpace Ethereum mainnet. In 2023, Layer 2 transactions already outpaced Ethereum mainnet by a factor of 6.
- Web2 Companies in the Web3 Space: The report anticipates that a Web2 company will make a major acquisition in the Web3 space as real businesses are built on-chain.
- DeFi Exchanges: The report suggests that DeFi exchanges will take major market share from centralized exchanges due to improved on-chain infrastructure.
- Solana’s Growth: The report predicts that Solana will continue to be one of the largest, most-used Layer 1s.
- Cosmos Dominance: The report forecasts an increase in Cosmos dominance in terms of Total Value Locked (TVL) and active users.
2023 Crypto Performance
- Total DeFi TVL: The report notes that Total DeFi TVL nearly doubled from $45.9B to $89.4B in 2023.
- DEX Volume: The report highlights that DEX volume rebounded 4X from a multi-year low of around $8B per week in the final weeks of 2022 to over $33B per week in the final weeks of 2023.
- Blockchain Daily Active Addresses: The report points out that daily active blockchain addresses grew from around 4 million at the start of 2023 to over 8 million per day in the final days of the year.
Actionable Insights
- Monitor Ethereum Layer 2 and alt Layer 1 Activity: Given the predicted growth, investors should keep a close eye on Ethereum Layer 2 and alt Layer 1 activity.
- Watch for Web2 Companies Entering the Web3 Space: Investors should be aware of potential acquisitions by Web2 companies in the Web3 space, which could significantly impact the crypto market.
- Consider the Potential of DeFi Exchanges: With the predicted growth of DeFi exchanges, investors should consider the potential of these platforms.
- Track Solana’s Performance: Given the predicted growth of Solana, investors should monitor its performance closely.
- Assess the Growth of Cosmos: With the predicted increase in Cosmos dominance, investors should assess its growth in terms of TVL and active users.
