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Managing assets of approximately $80 billion, VanEck shared 15 flash 2024 predictions for cryptocurrencies. The asset management giant expects 2024 to witness many developments that will positively impact Bitcoin (BTC) and altcoins in terms of price, network activity, adoption, and lead to the breaking of new records, particularly including the approval of the first spot Bitcoin ETF in the U.S.
Predictions for Bitcoin and Ethereum in 2024
VanEck listed 15 crypto predictions for 2024 on its official X (formerly Twitter) account. The asset management giant foresees the expected recession in the U.S. and the approval of the country’s first spot Bitcoin ETF in 2024. The company predicts that the spot ETF will attract over $2.4 billion to the market in the first quarter of next year, strongly supporting the price of the largest cryptocurrency.
Among the company’s predictions is the eagerly awaited Bitcoin block reward halving. VanEck expects the major Bitcoin event expected to take place in April 2024 to cause minimal market disruption among miners and to increase the price of BTC, with the cryptocurrency expected to reach an all-time high in the fourth quarter of 2024.
The company also added that Bitcoin price reaching an all-time high in 2024 could be driven by political events and regulatory changes following the U.S. presidential elections.
VanEck also expects the Lightning Network’s Bitcoin Staking application to increase the use of Bitcoin’s blockchain for money transfers through new user-friendly staking tools.
The company predicts that Ethereum, the king of altcoins, will outperform Bitcoin throughout the year, with the network’s native asset ETH expected to perform better than major tech stocks. VanEck anticipates that the EIP-4844 upgrade to the Ethereum network will capture the majority of TVL and transaction volume on Layer 2 EVM Ethereum after the upgrade. The company also noted that other smart contract platforms are expected to take a significant share of Ethereum’s market.
In 2024, VanEck expects the NFT market to regain attention, reaching record levels of market activity with the leadership of Ethereum and the impact of Bitcoin’s Ordinals protocol. The company expects the ETH-BTC NFT issuance ratio to reach 3-1 by the end of the year.
Stablecoin Market Cap to Exceed $200 Billion
VanEck included predictions for stablecoins in its 2024 cryptocurrency forecasts. The company expects the market value of stablecoins to surpass $200 billion, reaching an all-time high during the year.
Furthermore, VanEck evaluates that the second-largest stablecoin, USD Coin (USDC), will regain lost market share and increase its market share significantly.
Notable 2024 Predictions for Crypto Exchanges
VanEck made a bold prediction that Binance will lose its spot as the number one spot trader with the entry of competitors such as OKX, Bybit, Coinbase, and Bitget into the leadership race. According to the company, Coinbase’s futures market volume could exceed $1 billion daily with the key importance of being included in regulated exchange indices.
VanEck also expects Coinbase to increase its Layer 2 revenues with the support of new accounting standards and the growth of the Layer 2 network Base Protocol, enabling the exchange to attract more institutional investors.
For decentralized crypto exchanges, VanEck predicts that the market share of spot trading on decentralized exchanges will reach record levels, with rapid Blockchains like Solana (SOL) and wallets enabling automatic transactions leading to increased acceptance of on-chain trading and self-custody.
Special Emphasis on 4 Altcoins: They Could Make a Mark on 2024
VanEck’s 2024 cryptocurrency predictions specifically highlighted 4 altcoins. The company expects the blockchain game Immutable X (IMX) to surpass 1 million daily players, leading to a wider adoption and climbing to the top of the market value rankings due to significant versions and the ease of use of the Immutable Passport wallet.
VanEck foresees a significant increase in the use of DePin networks in 2024. According to the company, especially with the collaboration of Hivemapper and Helium (HNT), Hivemapper will map significant distances and Helium will offer cost-effective alternatives to traditional infrastructures with the rapid expansion of the 5G network, leading to increased adoption.
The company predicts that Solana will enter the top 3 blockchains in terms of TVL and user count, and that with the increase in DeFi’s TVL and ETF interest, Pyth Network (PYTH) and Chainlink (LINK) will potentially surpass their TVS.
VanEck also expects leading decentralized crypto exchange Uniswap (UNI) to attract institutional volume by surpassing non-KYC compliant applications, leading to an increase in the price of UNI.