As the end of the year approaches, the Nansen team has shared key insights on higher-probability scenarios poised to take center-stage in 2024.
In line or consistent with prevailing sentiment, which leans toward positive scenarios for crypto in 2024, Nansen says that their outlook remains “optimistic.”
These are a few key trends they foresee taking off in 2024:
- Crypto prices would be challenged as there’s a 10-20% probability that inflation re-accelerates post Fed-pivot.
- AI agents will become primary users on the blockchain, leading to a more efficient and secure ecosystem.
- Intent-centric apps will improve user experience and address pain points, making blockchain more accessible.
- DEXs or decentralized crypto exchanges will gain market share from CEXs due to their innovative features and monetary incentives.
Bitcoin will expand its use cases “beyond simple transactions, becoming a backbone for other applications,” the Nansen team predicts.
As noted in the update from Nansen, 2023 started by the consecutive bankruptcies of five banks in the US, one in Switzerland, “representing a cumulated USD $1tn of assets, a record on par with the 2008 Global Financial Crisis.”
For crypto markets, the other major events “were the US Securities and Exchange Commission investigating two of the largest crypto exchanges globally.”
If History rhymes, it does “not often exactly repeat itself, and markets soon looked past these events, with the shiny prospects of crypto spot ETFs approvals becoming more probable.”
It all looked up from here, and BTC/USD is “up 153% in 2023 year-to-date” at the time of writing.
Solana the phoenix has risen from its FTX ashes, new blockchains have emerged at the intersection of public networks and centralized apps, the reign of Scaling and Optimistic Rollups has so far remained unchallenged though, despite promising advances in ZK rollup technology, and of course, 2023 has had a good dose of speculation.”
You may review the full report put together by the Nansen analysts.