Apparently, the year 2023 can be considered important in terms of developments around the cryptocurrency industry. With the G20 summit constituting debates around a cryptocurrency-based regulatory framework, with Bitcoin (BTC) contesting the $40,000 price tag, the tone for the industry is believed to be set for 2024. โIn 2023, I think it will be developed developments that cover cryptocurrencies. bill announcement, G20 presidency, discussions on crypto regulations, and the rise of BTC and Ethereum (ETH) beyond the $41,000 and $2,200 marks. Looking ahead, 2024 promises the BTC Halving event, along with innovations in the DeFi space and approvals of spot ETF applications,โ Rahul Pagidipati, CEO of ZebPay, a cryptocurrency exchange, told FE TransformX.
After 2022, it was understood that expectations were low from the beginning. cryptocurrency industry, due to how the situation developed around Sam Bankman-Fried's FTX. Media reports suggest that clients pulled out due to the FTX fallout, causing the cryptocurrency industry's valuation to fall below $1 trillion. However, data provided by CoinGecko, a cryptocurrency data aggregator, showed that the cryptocurrency industry showed signs of recovery starting in 2023 as it ended the first quarter with a total cryptocurrency value of 1.2 trillion. Dollars. market capitalization. The aggregator also mentioned that there was an upward trend in the average daily trading volume, which increased by 30% quarter-on-quarter from -33% in Q4 2022 to a total value of $77 billion in Q1 2023. The introduction of the Crypto Asset Regulatory Framework (CARF) by the Organization for Economic Cooperation and Development (OECD), an intergovernmental organization, is believed to be a critical milestone as it has developed guidelines on the taxation of crypto assets. based on operational capabilities and current market trends. In addition, changes were introduced to the Common Reporting Standard (CRS), which refers to international guidelines for the automatic distribution of financial information between different countries. tax corporations, to add derivatives such as cryptoassets and related platforms.
โI hope that governments around the world continue to increase regulations of the crypto industry. This could hurt the industry in the short term, but could also provide stability and protection for investors in the long term. I expect more institutional investors to enter the cryptocurrency market in 2024. This could give a boost to the market and help legitimize cryptocurrencies as an asset class. I expect to see innovations in the cryptocurrency industry in 2024, such as new blockchain protocols, new decentralized applications (dApps), and new ways of using cryptocurrencies,โ Sumit Ghosh, co-founder and CEO of Chingari, a Web3.0 live stream. application, highlighted.
In addition to BTC, stablecoins also made their presence felt in the cryptocurrency market, as the top 15 stablecoins recorded a 4.5% drop in their market share, which amounted to $6.2 million, due to the USD Coin (USDC) decoupling event and Paxos closure. of Binance USD (BUSD). BUSD and USDC reportedly saw a drop in their values โโof 54.5% and 26.9% respectively, while Tether (USDT) saw an increase in its value by recording an increase of 20.5%, for a value of 13.6 billion dollars, in its market capitalization. Following the ETH 2.0 event, liquid staking governance tokens saw a 210.9% increase in market capitalization in the first quarter of 2023. In terms of institutional investments in BTC and ETH, companies such as Goldman Sachs, Morgan Stanley, BlackRock, BNY. Mellรณn, among others. Within January 10, 2024, the US Securities and Exchange Commission (SEC) is expected to decide on the authorization of BTC spot exchange-traded funds (ETFs) belonging to Fidelity, Invesco and BlackRock. Data from a survey conducted by PricewaterhouseCoopers (PwC), a professional services firm, showed that 83% of institutional investors expected cryptocurrencies to become valuable to the mainstream financial structure in the next five years.
Despite Changpeng Zhao (CZ) resigning from his CEO position at Binance, more money- wash charges, BTC crossed the $40,000 level and traded at around $42,000, with expectations of reaching the $45,000 level. In 2024, the next BTC halving event is expected to occur, which means the mechanism to reduce the BTC mining reward by half to control the number of new BTC coins. In April 2024, the next BTC halving event is believed to occur after the total block count reaches 740,000, which will reduce the block reward from 6.25 to 3.125, according to IG Group, a currency company. Future predictions for 2024 indicate that more clarity will be provided on the long-awaited cryptocurrency regulations, along with tokenized payments coming to banks. Data provided by Statista, a business intelligence and data platform, showed that in the cryptocurrency industry, the total user count should reach 992.5 million users by 2028 and user penetration should reach 12.39 % by 2028.
โI believe in blockchain and Web3.0 technologies as we move towards a decentralized future. I see blockchain as a force for good, not just a technology. The secret is believed to be a decentralized and tokenized node infrastructure that gives more power to developers, businesses, and ecosystem operators. There seems to be a sense of optimism about blockchain's potential to revolutionize as we look ahead India. This sentiment is seen to be reflected in the MENA markets,โ concluded Shrikant Bhalerao, Founder and CEO of Seracle, a blockchain cloud for Web3.0 development.
