This is Part 3 of our 4 part series on Crypto Trends for 2024. We look into trends that should headline this year. The articles are loosely based on this Messari Report.
We dive straight into this new Crypto Trends chapter for 2024.
#17 Ethereum remains all-in on its rollup centric view of the future, and much of the economic value in this year’s rally will go to those rollup chains’ tokens vs. ETH.
The spread trade is almost too easy. pic.twitter.com/UfyzMli4HO
— Ryan Selkis (d/acc) (@twobitidiot) January 2, 2024
Layer 1 Networks
For layer 1 networks, there are two words for 2024, interoperability and privacy. Another feature that may change the L1 landscape is modular chains. We showed our support for interoperability throughout 2023. It’s what the crypto industry needs to go forward. Privacy is another feature that we support. So, let’s take a look at some Layer 1 chains for 2024.
- Ethereum
Ethereum still holds the #1 position. The first-mover advantage is still working. However, developers will look for faster and cheaper options to build on. Close to home, this will be L2s. Other chains took over many key features. Tron has the stablecoin market cornered. Stellar did the same for RWA, and DePin calls Solana its home. Furthermore, DYDX moved to Cosmos. That’s the biggest Perp DEX in DeFi.
However, L2s on Ethereum will become almost free to use with the Cancun-Deneb upgrade. It will reduce gas fees by 90-99%. Furthermore, Ethereum’s market cap is 10x as high as the next contender. There will not be one single Ethereum killer. However, over time, too many protocols will chip away at Ethereum’s position.
- Solana
Solana is last year’s comeback kid. From a price below $10 in December 2022, it momentarily peaked at $121 almost to the date, a year later. Where will this end for Solana? Going above its ATH of $260 in November 2021 will be difficult. There are many more tokens in circulation now, compared to 2 years ago. There’s also the situation of subsidizing the transaction fees. See the X post below.
Solana fanboys don’t know they are actually paying $100 mil in fees / month to use the network.
SOL runs on subsidies & inflation = price crashes = subsidies crash = validators leave = chain halts.
Now you know why SOL has INFINITE supply = death spiral to zero?
It costs… pic.twitter.com/BZTkkV4xGa
— Duo Nine YCC (@DU09BTC) December 23, 2023
- Celestia
Celestia came onto the scene with a great airdrop. If you held on to their drop, you’re eating well in 2024. Their modular chain design is going to make waves. A monolithic chain, like Ethereum, completes all tasks itself. However, a modular chain concentrates on one task. It delegates other tasks to a different chain. As a result, modular chains offer superior scalability and cheaper transactions. Celestia seems to have only started its 2024 run.
Other Chains to Keep an Eye Out For
- Lukso — Developed by Fabian Vogelstetter and his wife, Marjorie Hernandez. Vogelstetter developed the ERC-20 token. In 2023, the chain launched its mainnet and its native LYX token. It’s interoperable and scalable. Furthermore, it offers a new onboarding feature with its Universal Profiles. Use Web2 features for Web3 log-ins. Lukso offers an interesting mix of lifestyle, NFTs, gaming, and the metaverse. As a result, they are well on their way to a top 20 position by market cap.
We’ve reached another special milestone for the LUKSO ecosystem
There are now over 5,000 Universal Profiles on LUKSO Mainnet
Create yours today: https
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