Simon Ng Asset management company Vaneck has released its 15 cryptocurrency forecasts for the year 2024. These projections encompass various significant developments, including the onset of a U.S. economic recession, the potential approval of spot bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC), and a remarkable surge in bitcoin’s value, possibly instigated by political events and regulatory adjustments following a U.S. presidential election.
Vaneck’s 15 Crypto Predictions for 2024
On Thursday, Vaneck, the asset management firm, unveiled its set of 15 cryptocurrency forecasts for 2024. The initial forecast revolves around the anticipation of a U.S. economic recession coinciding with the SEC granting approval for spot bitcoin exchange-traded funds (ETFs). In a statement on the social media platform X, Vaneck commented:
“As the U.S. recession unfolds, we also expect the SEC to give the green light to spot bitcoin ETFs. This development could lead to a substantial influx of over $2.4 billion into these ETFs during Q1 2024, effectively bolstering the price of bitcoin.”
It’s important to note that Vaneck is among several firms that have submitted applications to launch spot bitcoin ETFs with the SEC. Other notable applicants include Blackrock, the world’s largest asset manager, Fidelity Investments, Ark Invest, and Bitwise.
The second prediction is centered around the upcoming Bitcoin halving scheduled for April 2024. Vaneck predicts minimal disruption in the market during this event, followed by a post-halving surge in bitcoin’s value, offering substantial gains for low-cost miners. The third forecast anticipates a dramatic increase in the price of bitcoin, with Vaneck stating:
“We foresee bitcoin reaching an all-time high in Q4 2024, potentially catalyzed by political developments and regulatory changes following a U.S. presidential election.”
Subsequent predictions shift the focus to Ethereum. While Vaneck predicts that Ethereum will outperform major tech stocks in 2024, it does not foresee Ethereum surpassing Bitcoin. However, Ethereum’s market dominance is expected to face challenges from other smart contract platforms. Furthermore, the implementation of EIP-4844, also known as proto-danksharding, is expected to reduce transaction fees and enhance scalability for layer 2 chains like Polygon, Arbitrum, Optimism, and others.
The sixth prediction highlights a resurgence in non-fungible token (NFT) activity, with Ethereum leading the way and Bitcoin gaining traction through the Ordinals protocol, ultimately shifting the ETH-to-BTC NFT issuance ratio to 3-1 by the end of 2024. Additionally, Vaneck expects Binance to lose its top position in spot trading, with competitors such as Okx, Bybit, Coinbase, and Bitget vying for leadership. Vaneck’s seventh prediction suggests that Coinbase’s futures market could surpass a daily volume of $1 billion as regulated index inclusion becomes a crucial factor.
The eighth forecast suggests that the market capitalization of stablecoins will surpass previous highs, exceeding $200 billion. This growth is expected to be accompanied by a resurgence in USDC’s market share, signaling increased institutional adoption, especially within emerging Layer 2 chains. Vaneck’s ninth prediction predicts that decentralized exchanges (DEXs) will achieve record-high market share in spot trading. This growth will be driven by fast blockchains like Solana and the availability of wallets facilitating automated transactions, promoting on-chain trading and self-custody.
The tenth prediction asserts that remittances will drive blockchain usage, with the Lightning Network offering yield opportunities through user-friendly staking tools, referred to as “Bitcoin Staking.” Additionally, Vaneck anticipates the emergence of a highly popular blockchain game with over 1 million daily players, resulting in a significant increase in Immutable X’s market capitalization due to key releases and the introduction of the Immutable Passport, which streamlines wallet usage and enhances adoption.
The 12th prediction highlights Solana (SOL) as a blockchain set to become one of the top 3 by market capitalization, total value locked (TVL), and user base, potentially surpassing Chainlink’s TVS (Total Value Secured) with the introduction of its Pyth oracle. This growth is expected to occur as DeFi (decentralized finance) TVL surges and interest in ETFs continues to rise.
Moreover, Vaneck predicts increased adoption of decentralized physical infrastructure (Depin) networks in its 13th forecast. The 14th prediction suggests that new accounting standards will lead to an increase in corporate crypto holdings, with Coinbase reporting Layer 2 revenue as the Base Protocol expands. By 2025, a major financial institution may launch a quasi-public blockchain with connectivity to public chains.
Finally, Vaneck’s 15th prediction pertains to know-your-customer (KYC) compliance in the decentralized finance (DeFi) space. Vaneck expects KYC-compliant DeFi applications, led by Uniswap, to surpass non-KYC counterparts, attracting institutional volume and enhancing protocol fees, which could contribute to an increase in the value of Uniswap’s token.
What are your thoughts on Vaneck’s 15 cryptocurrency predictions for 2024? Share your opinions in the comments section below.
Table Of Contents
Frequently Asked Questions (FAQs) about Cryptocurrency Predictions
What are Vaneck’s 15 crypto predictions for 2024?
Vaneck’s 15 crypto predictions for 2024 include expectations of a U.S. recession, the potential approval of spot bitcoin exchange-traded funds (ETFs) by the SEC, a post-halving rise in Bitcoin’s price, Ethereum outperforming tech stocks, NFT activity rebounding, and much more.
Who are the key players in the prediction of spot Bitcoin ETF approvals?
Notable companies that have applied for spot Bitcoin ETFs include Vaneck, Blackrock, Fidelity Investments, Ark Invest, and Bitwise.
What is the significance of the Bitcoin halving in April 2024?
The Bitcoin halving in April 2024 is expected to lead to minimal market disruption and a subsequent increase in Bitcoin’s price, benefiting low-cost miners.
What factors are anticipated to drive Bitcoin’s all-time high in Q4 2024?
Bitcoin’s potential all-time high in Q4 2024 may be spurred by political events and regulatory changes following a U.S. presidential election.
How does Vaneck view Ethereum’s performance in 2024?
Vaneck predicts that Ethereum will outperform major tech stocks in 2024, although it may not surpass Bitcoin in dominance. Ethereum’s market share may also face challenges from other smart contract platforms.
What is EIP-4844 (proto-danksharding) and how will it impact Ethereum?
EIP-4844, also known as proto-danksharding, is expected to reduce transaction fees and enhance scalability for layer 2 chains on the Ethereum network, such as Polygon, Arbitrum, and Optimism.
What are the expectations for the NFT market in 2024?
The NFT market is predicted to rebound to an all-time high, with Ethereum leading the way, and Bitcoin gaining traction through the Ordinals protocol. This may shift the ETH-to-BTC NFT issuance ratio to 3-1 by the end of 2024.
Which cryptocurrency exchange is anticipated to lose its top spot in spot trading?
Vaneck predicts that Binance may lose its number one position for spot trading, with competitors like Okx, Bybit, Coinbase, and Bitget vying for leadership.
What is the forecast for Coinbase’s futures market volume?
Coinbase’s futures market is expected to exceed $1 billion in daily volume, with regulated index inclusion playing a key role.
How is the market capitalization of stablecoins expected to evolve?
The market capitalization of stablecoins is projected to surpass its previous peak and reach a new high above $200 billion, accompanied by a resurgence in USDC’s market share, signaling increased institutional adoption.
What are the expectations for decentralized exchanges (DEXs) in 2024?
DEXs are predicted to hit all-time highs in spot trading market share, driven by fast blockchains like Solana and the availability of wallets enabling automated transactions, promoting on-chain trading and self-custody.
What role will remittances play in blockchain usage in 2024?
Remittances are expected to boost blockchain usage, with “Bitcoin Staking” on the Lightning Network offering yield opportunities through new, user-friendly staking tools.
What is the projection for blockchain gaming in 2024?
A blockchain game with over 1 million daily players is anticipated to emerge, boosting Immutable X’s market capitalization through key releases and the introduction of the Immutable Passport, simplifying wallet usage and enabling wider adoption.
How is Solana (SOL) expected to perform in the blockchain market?
Solana (SOL) is projected to become one of the top 3 blockchains by market capitalization, TVL, and user base, potentially surpassing Chainlink’s TVS with the Pyth oracle as DeFi TVL surges and ETF interest grows.
What is the outlook for decentralized physical infrastructure (Depin) networks?
Decentralized physical infrastructure (Depin) networks are expected to witness increased adoption, suggesting a growing trend in this area.
How will KYC compliance impact DeFi applications?
KYC-compliant DeFi apps, led by Uniswap, are likely to surpass non-KYC ones, attracting institutional volume and enhancing protocol fees, which could boost Uniswap’s token value.
More about Cryptocurrency Predictions
- Vaneck’s 15 Crypto Predictions for 2024
- SEC and Spot Bitcoin ETF Approvals
- Bitcoin Halving in April 2024
- Ethereum’s Performance in 2024
- EIP-4844 (proto-danksharding) Impact on Ethereum
- NFT Market Outlook in 2024
- Cryptocurrency Exchange Competition
- Coinbase’s Futures Market Volume
- Stablecoin Market Capitalization
- Decentralized Exchanges (DEXs) in 2024
- Remittances and Blockchain Usage
- Blockchain Gaming Projection
- Solana (SOL) Performance
- Decentralized Physical Infrastructure Networks
- KYC Compliance Impact on DeFi
