Growth areas of the virtual currency market that Binance will focus on in 2024: Bitcoin ecosystem, DePIN, etc.

8 areas where progress is expected

On the 15th, the research department of crypto asset (virtual currency) exchange Binance released a report looking back on 2023 and looking ahead to 2024. We also analyze individual stocks such as Solana (SOL).

Binance Research has identified eight areas where significant progress is expected over the next year:

• Bitcoin (BTC) Ecosystem
• ownership economy
• Artificial intelligence (AI) integration
• Real Assets (RWA) Tokenization
• On-chain liquidity
• Accelerating participation of institutional investors
• Security
• account abstraction

First, Binance Research stated that trends such as developments related to Ordinals (a Bitcoin version of NFTs (non-fungible tokens)) and BRC-20 tokens, as well as capital inflows due to the approval of Bitcoin spot ETFs, will continue this year. .

He added that optimism about the April halving could cause volatility in the market.

He also predicts that scaling solutions such as Stacks will help enhance Bitcoin’s functionality.

connection:
Bitcoin Layer 2 “Stacks (STX)” has soared approximately 6 times since the beginning of the year

connection:
What is BRC-20?Possibilities and challenges brought about by Bitcoin token standards

Institutional investors, AI, and RWA tokenization

As for institutional investors, the entry into cryptocurrencies during the bear market, especially by large traditional asset management companies such as BlackRock and Fidelity, shows that they believe in the long-term potential of the industry. pointed out.

He said that with news coverage of halving and ETFs, more attention will be focused on the cryptocurrency sector, and more companies will consider incorporating it.

The integration of artificial intelligence (AI) and cryptocurrencies is also one of the areas expected to grow in 2024. Although these efforts are still in their early stages, he argued that they could be implemented in areas such as transaction automation, predictive analytics, generative art, and the operation of decentralized autonomous organizations (DAOs).

He also points out that the tokenization of real-world assets (RWA), such as real estate, artwork, and stocks, will represent a powerful use case for blockchain technology.

connection:
Why investors are interested in real asset tokenization and what is Real World Assets (RWA)?

Binance Research also said there is traction in “ownership economies” such as decentralized physical network infrastructure (DePin) and decentralized social media that allow users to have sovereign control over things like personal data.

We also expect the on-chain liquidity ecosystem to flourish, including token swaps, yield and liquidity management, and the continued importance of improved security and account abstraction.

Analysis about Solana

This report also focuses on Solana (SOL) as an individual stock. He also pointed out that Solana is home to the DePin project. Solana hosts Helium, Render, Hivemapper, and more.

Decentralized physical network infrastructure (DePin) uses mechanisms such as the token economy to build a decentralized infrastructure network that requires physical resources.

Binance Research points out, for example, that Hivemapper, a community-driven decentralized mapping service that is an alternative to Google Maps, has already mapped more than 10% of the world’s roads.

He also notes that Solana-related NFT markets and block explorers may be attractive M&A targets for Ethereum (ETH) startups with abundant funds.

Recently, there was a case where Etherscan, a major Ethereum exploration site, acquired Solana’s block explorer Solscan.

connection: Etherscan acquires Solana block explorer Solscan, cooperative merger between disparate chains

connection:
Number of Cryptocurrency Solana Developers, Ecosystem Growth and Activity Report in 2023

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