The OG digital asset will be the most interesting story in Web3 for 2024
It's a new year, and that means forecasting time! 2024 will be a landmark year for Web3, with Bitcoin leading it into the popular consciousness.
"A long time ago in a galaxy far, far away…" Web3 in 2023
2023 saw several green shoots for the industry. The market cap of crypto assets recovered from US$ 840 billion in January to US$ 1.7 trillion by December. Major corporations such as Starbucks, Lufthansa, and Fiat are implementing Web3 loyalty programs, signaling broad industry interest. Moreover, Japan, South Korea, and Hong Kong are shaping regulations to integrate Web3 into their economies, recognizing its potential for future growth.
However, despite these macro trends, enthusiasm by the general public has been muted. Since the "Crypto Winter" of 2022, interest has dissipated with price drops. Yet, key developments in Bitcoin are setting the stage for a significant shift.
Factors such as rising prices, the upcoming halving, US spot ETF listings, and the introduction of Ordinals are poised to propel Bitcoin and Web3 back into mainstream prominence.
"May the Force be with you" Bitcoin Prices
Bitcoin mounted an impressive comeback in 2023, increasing from a US$ 16,000 low in January to US$ 44,000 in December. Its share of the crypto market cap increased 38% to over 50%.
This price surge not only benefits investors but also attracts broader market interest, which encourages new builders and entrepreneurs into the entering sector.
"I am a Jedi, like my father before me." Bitcoin Halving
Bitcoin has a fixed supply of 21 million and has its scarcity managed by a mechanism called "halving." Every four years, the rewards a miner receives for securing the network are reduced to curb inflation and create scarcity. The fourth halving is scheduled for April and will reduce mining rewards from 6.25 to 3.125 Bitcoin.
This event historically triggers a rise in Bitcoin's value. For instance, after the first halving, Bitcoin's price soared from US$ 12 to over US$ 1,000.
"In my experience, there is no such thing as luck." US Bitcoin Spot ETF
The US approval and listing of a Bitcoin Spot ETF signifies a major advancement in mainstream adoption. ETFs provide a simpler way for retail and institutional investors to engage with Bitcoin, potentially catalyzing wider participation in the upcoming market upswing.
While several traditional stock exchanges already provide investors access to crypto products, it's a huge step for mass market adoption in the world's largest market capital market.
"I find your lack of faith disturbing." Bitcoin Ordinals
While not popularly associated with the NFT boom, the first blockchain-based NFTs were built on a Bitcoin protocol. However, Bitcoin's protocol wasn't adopted after the explosion of NFTs in 2021. This changed in January 2023 with the launch of Bitcoin Ordinals, a new method for storing and trading digital content on the Bitcoin blockchain. This innovation led to a substantial increase in transactions and NFT sales, with Bitcoin NFT sales surpassing Ethereum and Solana in 2023 with sales volume.
"Chewie, we’re home." A Brighter 2024
The outlook for 2024 isn't solely about Bitcoin's trajectory; it encapsulates the growth of the entire ecosystem. Historical trends show that rising Bitcoin prices foster an influx of entrepreneurs and builders entering Web3.
The next wave of interest in Web3 will be unprecedented as in addition to price gains and major market events, there is a trusted and simple way for the mass market to participate in the bull market. The stars are all aligned for this year to be an exciting and transformative inflection point for the entire Web3.
This is where the fun begins.
Disclosure: This article is provided for informational purposes only, it represents the personal views of the author and should not form the basis for making investment decisions, nor be construed as a recommendation or advice to engage in investment transactions.