Cryptocurrency enthusiasts and investors eagerly await emerging trends in the crypto asset space. Paul Veradettakit, partner at Pantera Capital, recently shared six key predictions for the cryptocurrency landscape in 2024. Veradettakit paints a dynamic picture of the crypto future, from Bitcoin’s resurgence to on-chain integration of computationally intensive applications. Here are the details…
Leading crypto Bitcoin is resurrecting, DeFi Summer 2.0 is coming
Veradettakit, a partner of the famous cryptocurrency fund Pantera Capital, predicts a significant revival of Bitcoin in 2024 with the spread of layer 2 (L2) solutions and extensible layers that support smart contracts. The Bitcoin ecosystem may witness the integration of Turing-complete smart contract languages, paving the way for Bitcoin to enter decentralized finance (DeFi). As the DeFi infrastructure matures, the total value locked (TVL) in Bitcoin DeFi could rise from the current $300 million to 1-2% of Bitcoin’s market cap, potentially reaching $10-15 billion.
Tokenization will reshape social experiences in new ways, and NFTs will serve as innovative points and loyalty systems. NFTs are expected to play a significant role as profiles and social resources that can be traded on-chain and participate in the DeFi ecosystem. This shift towards tokenized social experiences reflects the increasing intersection of blockchain technology and everyday social interactions.
TradFi-DeFi bridges are proliferating
Veradettakit predicts a rise in bridges between traditional finance (TradFi) and decentralized finance (DeFi), facilitated by stablecoins and “mirrored” assets. Institutional adoption is expected to increase significantly as tokenized real-world assets and traditional financial products find their way into the DeFi space. This integration creates a bridge connecting the two worlds, fostering increased liquidity, diversification and investor flow
Zero-knowledge proofs (ZKPs) are positioned to interface between different components of the modular Blockchain stack. This development offers greater flexibility to developers developing decentralized applications (DApps) and lowers the barriers to entry into the Blockchain space. The convergence of the modular and ToM narratives marks a significant step towards a more adaptable and user-friendly Blockchain ecosystem.
On-chain calculations intensify
Veradettakit envisions a shift towards economically viable, on-chain computing, enabling applications such as artificial intelligence and Decentralized Physical Infrastructure Networks (DePIN). This evolution is expected to reshape the on-chain data economy, allowing users and developers to avoid burdensome gas fees and strict computing power limitations. Fully on-chain gaming and social networks are also on the horizon.
L1 and L2 period in cryptocurrencies
The proliferation of Layer 1 (L1) and Layer 2 (L2) solutions has led to an environment where smaller ecosystems focus on specific verticals such as social networks, gaming, and DeFi. Veradettakit envisions these as “execution chains” or “part chains” and effectively implements a “hub and spoke” model. This approach aims to preserve advantages within specific niches and create a more user-centric and specialized Blockchain experience.
As we step into 2024, these bold predictions from Pantera Capital’s Paul Veradettakit offer a roadmap for the evolving crypto landscape. The integration of Bitcoin into DeFi, the rise of tokenized social experiences, and bridging TradFi and DeFi mark important milestones in the ongoing maturation of the cryptocurrency ecosystem. Developers and enthusiasts alike can’t wait to witness these predictions come true and the transformative impact they can bring to the world of crypto assets.
To be informed about the latest developments, follow us Twitter’in, Facebookin and InstagramFollow on . Telegram And YouTube Join our channel.