Cryptocurrency stands among the fastest growing industries today. It has turned the interest of people towards itself with its increasing popularity, all-time highs and lows. There is no doubt that every investor keeps their eye on every coin and never misses an opportunity to avail the benefits from this market. It is possible if people keep on exploring the changes and regulations of the market.

With the high demand of the crypto industry it is very crucial to keep an eye on its upcoming trends. This article covers up the Top 10 latest trends that will be ruling the crypto industry in 2024.

Bitcoin Halving:

Amidst the prominent cryptocurrency trends poised to create an impact in 2023 and beyond, Bitcoin halving is one of the most eagerly awaited events. However, what exactly is this event, and why does it hold such great importance?

Bitcoin, since its inception in 2009, has experienced three halving events. The initial BTC halving occurred on November 28, 2012, followed by the second halving on July 9, 2016. The most recent Bitcoin halving transpired on May 11, 2020. 

Bitcoin halving occurs after every four years, That’s why the next one is projected to take place in 2024.

Bitcoin Halving is an event where the reward of mining is cut into the half leaving a high felt impact on the supply and demand dynamic of the crypto market. As Bitcoin reduces the rate at which Bitcoins are generated its aftereffects cannot be overlooked.

Scarcity rises when the number of new Bitcoins hitting the market declines, which frequently drives up the price of the coin. Historical data shows that Bitcoin’s value increased dramatically following prior halving occasions.

                                                            Source: nicehash

Bitcoin ETF Approval

January 11th, saw the approval of Bitcoin of exchange-traded funds (ETFs). These Bitcoin ETFs enable investors to access the promising potential of BTC without the need to possess it directly or manage its secure storage.  The initial Bitcoin Futures ETF made its debut on the New York Stock Exchange in 2021 and can only hold Bitcoin futures contracts.

The major players, who got approved, are all in the traditional finance sector in the United States like BlackRock, Grayscale, Bitwise, WisdomTree, Valkyrie, VanEck and more but The SEC has rejected every application for spot Bitcoin ETFs, including Grayscale’s, citing the failure of applicants to demonstrate their ability to safeguard investors against market manipulation.

The approval was a ‘sell the news’ event where BTC prices increased leading up to the approval, but then dropped after the approval. This was due to investors of Grayscale selling off their shares and Bitcoin, however, the price is set to rise again as soon as the market has consolidated this sell off.

Crypto Warfare

Crypto warfare is another growing trend of cryptocurrency where the crypto market is claiming its importance by raising funds for the war. The Russia and Ukraine war is a well-known incident. Crypto market played a significant role in the Russia-Ukraine war. Ukraine took a step forward by introducing a website where people can donate their funds in the form of digital assets. The website is reported to be collecting $100 million in crypto collection.

The Israel-Palestine war is another prime example. The Wall Street Journal reported based on data from forensics firm Elliptic and Tel Aviv software company BitOK that Palestinian Islamic Jihad received more than $93 million in cryptocurrency between August 2021 and June 2023.

In the end, the involvement of cryptocurrency in these events signals the beginning of a fresh trend in crypto warfare. Negatively, it prompts a reconsideration of the harsh aspects of a decentralized financial system. Conversely, it underscores the industry’s increasing significance on the positive side.

Crypto Regulation

The evolving trends of the crypto market also include the global focus on crypto regulation. For the complete assurance of crypto investment and to keep them safe and secure, governments from all around the world introduce laws and crafts policy to ensure the smooth and secure use of crypto assets.

This regulation is a dire need for the protection of crypto investors after Terra (LUNA) crash and FTX Exchange collapse, globally governments are working on it. But this regulation comes with hurdles as it is not possible to oversee and cater every upcoming issue.

What does the future of regulation mean for investors? Here are a few points to consider:

The 2021 bipartisan infrastructure bill, with a price tag of $1.2 trillion, included provisions for cryptocurrency tax reporting. These measures grant the IRS enhanced capabilities to better oversee the crypto-related activities of American citizens.

The G20 summit held recently emphasized the critical nature of this issue, as leaders pledged to promptly establish a reporting framework for cryptocurrency assets. The goal is to commence data sharing regarding non-financial crypto assets by 2027, signifying a collaborative global endeavor to address the intricacies of digital currencies through comprehensive regulation.

Announcements regarding regulations can influence cryptocurrency prices in markets already known for their volatility. Nonetheless, numerous experts continue to emphasize that regulation is beneficial for the industry. In the end, well-considered regulation has the potential to be a game-changing development for all stakeholders.

Layer 2 Smart Contracts on the Rise

Another famous trend that is among the top trends in reshaping the crypto landscape in future is the expansion of Layer 2. No matter how successful the projects of Layer 1 are they still lack the scalability and it remains a prominent concern. To solve these concerns of unstable scalability the concept of Layer 2 was introduced. Layer 2 smart contracts promises to resolve the scalability issues to advance the crypto adoption worldwide free from the hurdles.

The introduction of Layer 2 smart contracts in the market has transformed the crypto ecosystem. It enables real life doors and overcomes the challenges it was facing before with the advance and secure scalability. 

According to L2BEAT total value locked in L2 projects stands at $10.9B as of October 22, 2023. Layer 2 is observed to be the hero of the market driving it towards broader horizons and adding a great deal to its popularity and use.

                                          Source: L2BEAT

Non-Fungible Tokens (NFTs)

The decentralized funding alternatives that NFTs provide have been incredibly helpful to artists and producers. They have more flexibility in financing their creations because of this aspect. The good thing about the NFTs based on blockchain technology is that they are fairly safe. They also aid in verifying the ownership of the digital asset. With access benefits, NFTs are growing in popularity among artists and makers. 

While recent market turbulence might have temporarily obscured the outlook, numerous cryptocurrency experts anticipate a resurgence in the NFT market, signaling a substantial recovery from the 97% decline it experienced in 2022.

Ethereum 2.0 Reaching Its Full Potential

When discussing the groundbreaking trends of the crypto market the role of Ethereum cannot be ignored. Ethereum 2.0 was introduced to the crypto market in December 2020, Transitioning from the proof-of-work (PoW) to the proof-of-stake (PoS) model, bringing promises to reduce its energy footprint, increase scalability, and decrease transaction times for the network. However, it’s clear that Ethereum 2.0 has not yet fully unleashed its potential.

The year 2023 represents a pivotal moment for Ethereum. The highly awaited shift from PoW to PoS is poised to become a reality, bringing a range of thrilling advancements like Lower energy consumption, Deflationary Ether, Enhanced scalability and much more.

With its numerous advantages, Ethereum can anticipate its usage to continue expanding as 2023 progresses.

The Surging Popularity of Stablecoins

The total market cap of the stable coin on October 22th is estimated to be $124.5 billion. This counts 24.5 percent decline from the past year. Tether USDT is not included in the coins that faced that decline as it remained out of that queue with the same market cap of $83 billion, the same it had in 2022. Binance USD dropped by 82.73 percent as a result of the issues of Paxos sued in the United State. This Binance USD (BUSD) drop gave a way for tether to remain as high as it was before.

                                                        Source: Coingecko

Stablecoins have increased in dominance compared to the total cryptocurrency market cap, surging from 7.5% to 14.2% as of January 2023 and it is considered to be the fastest-growing sector in the space.

The Tokenization of Real World Assets (RWA)

Tokenization of Real World Assets also has marked its significance in the latest trends of the crypto market. In the realm of cryptocurrency,  these assets refer to the process of converting tangible physical assets into tokens on the blockchain. It opens a smooth way for the opportunities and easy hassle free trading.

Real World Assets (RWA) are on the rise in the cryptocurrency space, as illustrated in the DefiLlama chart below, showing a Total Value Locked (TVL) exceeding $770 million by the end of July 2023:

                                              Source: DefiLlama

Central Bank Digital Currencies (CBDCs):

Central Bank Digital Currencies are now also have crossed the barrier in a run of crypto trends. It is estimated that central bank currencies will rule 2023 and 2024 with its revolutionary approach. Many banks worldwide have already started converting their currencies into digital currencies. The goal of digital currencies is to expand financial inclusion, reduce transaction costs, and provide governments with more control over their monetary systems. The emergence of CBDCs is going to prove very beneficial for the future of the crypto market as they serve as a bridge between the traditional local currencies and digital currencies.

Sum up

In the end, cryptocurrency will remain a subject of much speculation. Nevertheless, it’s important to recognize that it’s a relatively new investment, which is why it’s crucial to stay vigilant and monitor emerging trends.

As we move forward, it’s crucial to stay watchful, flexible, and well-informed in order to navigate the complexities of this dynamic market. These trends underscore the dynamic character of the cryptocurrency world,  emphasizing the significance of staying well-informed. The future of cryptocurrency looks promising, and by embracing these trends, you can position yourself to seize the opportunities they offer.