The U.S. Securities and Exchange Commission (SEC) approved the first spot of Ethereum (ETH) exchange-traded funds (ETFs) in July, marking a significant milestone. However, this development did not generate the bullish momentum Ethereum investors had anticipated.
Despite the launch of nine spot Ethereum ETFs, the 2024 Ethereum rally paused in July. This slowdown could indicate that investors are taking profits following the announcement. The Grayscale Ethereum Trust (ETH), a popular choice among investors, saw significant outflows in its first two days of trading.
Yes, not all forecasts come true, but there are quite noticeable trends. They are long enough, so you can work within the trend and get a decent return. We will discuss the main trends in the cryptocurrency sphere below.
Cryptocurrency Trends 2024
SEC Becomes More Accommodating
Crypto investors are excited about the new spot Bitcoin and Ethereum ETFs launched in 2024, but the SEC has issued a caution regarding cryptocurrency investments. “While we approved the listing and trading of certain spot bitcoin exchange-traded products today, we did not approve or endorse Bitcoin,” said SEC Chairman Gary Gensler in January.
In September 2024, the SEC also amended its case against Binance, where it apologized for calling most of its tokens securities. This relaxation and commitment to rethinking the treatment of cryptocurrency is encouraging. This primarily concerns assets that have been called securities, such as ATOM, as well as crypto assets for staking, such as LDO.
Bitcoin Season Peak and Ethereum, Altcoin Season Beginning
Any digital coin market analysis will be able to note that Bitcoin has been growing for more than a year and a half, and its dominance – more than two years – is in the ascending channel. Ethereum recently updated the minimum against Bitcoin again, 0.04, which is the price held for more than 3 years. A liquidity sweep below may very likely cause the emergence of an altcoin season. Now there is an influx of funds through Bybit trading US and spot ETFs. This can trigger a chain of changes in the market.
At least, when navigating crypto investments, it is worth considering such a possibility. Against the background of the adoption of cryptocurrency, the future of cryptocurrency can be predicted to be quite optimistic. Your crypto trading strategies for 2024 should also take into account a rather promising chart of Bitcoin. Its bullish descending channel in 70% of cases breaks upwards and the potential of this figure should lead us to $ 80,000 per Bitcoin. This could be the very impetus for the start of the growth of ETH and altcoins.
Blockchain AI
Blockchain AI makes blockchain systems more efficient and secure. For example, AI can create automated market makers that provide liquidity in DeFi markets, enabling low-cost asset trading. According to CoinMarketCap, AI-related cryptocurrency projects reached a market cap of $40 billion in the first five months of 2024. One notable project is Near Protocol, a scalable blockchain platform with its token, NEAR, which enhances the efficiency and functionality of dApps using AI. Another standout is Fetch.ai, an open platform for developing innovative AI-driven products, whose token value rose by over 210% in the same period.
Decentralized Finance (DeFi)
In June’s market downturn, DeFi’s total value locked (TVL) dropped by 8.7%. However, Bitcoin Layer 2 networks Bsquared and CORE bucked the trend with TVL increasing by 332% and 300%, respectively. TON also saw significant growth, with its TVL rising by 109% month-over-month, hitting a new all-time high of $685.9 million, driven by the success of the Open League. Despite the subsequent market decline, DeFi is still interesting. But it is worth being careful with it, using security measures, such as VeePN VPN. This will protect against hackers who intercept data or infect the system.
Harris Vs. Trump
One of the most significant catalysts for the crypto market over the next four months is likely to be the U.S. presidential election, which saw major developments in July.
Following an assassination attempt on Republican nominee Donald Trump on July 13, President Joe Biden announced he would not seek reelection. The Biden administration has been tough on cryptocurrency, leading to a regulatory crackdown on the industry. Crypto investors and experts are hopeful that Kamala Harris, the new presumptive Democratic nominee, will take a friendlier stance towards the crypto community.
In late July, Trump clearly committed to supporting crypto-friendly policies if he returns to the White House. Speaking at the Bitcoin 2024 conference in Nashville, Trump promised to back U.S. Bitcoin mining and ensure the government wouldn’t sell its Bitcoin holdings. He also proposed creating a pro-crypto presidential advisory council. This marks a shift from Trump’s previous scepticism. In a 2021 interview, he called Bitcoin a “scam.”
Conference organizers had also been in discussions with Kamala Harris to attend the event, but she ultimately chose not to participate.
Tokenization of Real-World Assets
Tokenizing real-world assets (RWA) is gaining traction as a method for creating digital tokens that represent physical assets. These tokens can be traded and utilized in decentralized finance (DeFi) applications. For instance, Tether (USDT) is a well-known stablecoin that mirrors the value of a U.S. dollar in cryptocurrency. Although Tether is the third-largest cryptocurrency by market cap, its claim of being fully backed by reserves is contested.
Blockchain technology facilitates tokenising various assets, such as company shares (though not supported by the SEC), real estate, antiques, cars, watches, discount coupons, and more.
Advantages of RWA:
- Fractional Ownership: Assets can be divided into smaller portions, allowing more people to invest.
- Global Trading: Tokens can be bought and sold worldwide.
- Greater Market Access: Increases the pool of potential buyers and sellers.
- Transparency and Security: Ensures high levels of clarity and safety in transactions.
Conclusion
Crypto has made significant strides in early 2024, opening up numerous opportunities for entrepreneurs. Staying informed about these developments and integrating them into your business model can keep you ahead in innovation.