Bankless’ Five Predictions for Cryptocurrencies in 2024. This article is sourced from Bankless’ column “David’s 2024 Predictions”, compiled, translated, and written by BlockBeats.
(Previous Summary: Bankless: Targeting six tracks this year – LRT, Solana, parallel EVM, 2 billion pounds airdrop…)
(Background Supplement: Bankless: Where will Bitcoin go next after ETF, halving, and interest rate cuts?)
Table of Contents:
1. EigenLayer’s TVL surpasses $10 billion
2. 1 million ETH burned
3. Airdrops surpass $5 billion in 2024
4. ETH L2 narrative shifts towards optimized VM and parallel EVM
5. Solana crashes
Bankless co-owner David Hoffman presents his five predictions for cryptocurrencies in the new year, including the continued rise of EigenLayer’s popularity leading to a TVL surpassing $10 billion. Additionally, 1 million ETH will be burned. Airdrops will cover all ecosystems, distributing tokens worth $5 billion to early adopters of crypto protocols. The progress of Arbitrum, Optimism, and other EVM chains in optimizing virtual machines will be a key focus. The rapid growth of users on Solana may lead to crashes. The translated version by BlockBeats is as follows:
The first week of 2024 has begun, and you will see many predictions about the trends of cryptocurrencies this year. Of course, most of these predictions will ultimately be far off, but it is fun to speculate in the midst of a bull market, and I couldn’t resist sharing my own views.
So, here are my five predictions for cryptocurrencies in 2024.
My first prediction is that the popularity of EigenLayer will continue to rise throughout 2024. I have been emphasizing this point repeatedly, and as an advisor to the project (disclosed by Bankless), you may dismiss my enthusiasm, but you shouldn’t think that way.
EigenLayer’s mainnet is planned to launch in the second or third quarter of 2024, with billions of dollars’ worth of ETH deposited into its staking contract. Then, the AVS service will begin to roll out and start generating additional income for ETH. Initially, the extra ETH income may be insignificant, but over the first 24 months of EigenLayer, it will gradually increase. Sub-prediction: If EigenLayer conducts a token airdrop in 2024, it will be the largest airdrop in terms of funds distributed to users in history.
Since the merge, Ethereum has burned 335,000 ETH in the past 461 days.
In 2024, Ethereum will burn 1 million ETH. In the frenzy of the bull market, we simply haven’t seen the full effects of PoS + EIP1559. The furnace will become very hot.
This is the season of airdrops. In 2024, I believe tokens worth $5 billion will be distributed to early adopters of crypto protocols.
Airdrops will cover all ecosystems: Solana, Ethereum, Ethereum Layer 2 networks, and newer alternative chains will try to attract new users through airdrops and incentives.
In 2024, many L1s focused on VM optimization will enter the stage, including Monad and Sei. The Eclipse project plans to introduce SVM to Ethereum’s mainnet in 2024.
The metanarrative around L2 VMs will shift from EVM to VMs that prioritize execution optimization. The Ethereum community will ask Monad to become an L2, but Monad will reject this request.
What are the important issues to watch out for? How far have Arbitrum, Optimism, and other EVM chains progressed in virtual machine optimization and how far have they diverged from EVM?
The scalability of Solana doesn’t matter as much as how fast it is. If Solana attracts too many users too quickly, their flaws will be exposed.
This may not be catastrophic, but it will be an enlightening experience (hopefully). This will also be a testament to Solana’s success rather than its technical shortcomings.
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