The year 2023 has witnessed a renewed sense of excitement in the crypto industry. While it’s premature to definitively declare the return of a bull market, there is a more hopeful outlook than in recent times. Examining the current cryptocurrency development market trend, the global crypto ownership rate stands at approximately 4.2%, boasting over 320 million crypto users worldwide. The United States leads with 46 million crypto holders, followed by India, Pakistan, and Nigeria.
Considering recent events and trends, let us compile a roundup of key narratives and metrics to monitor in the upcoming months. Presented below are the top crypto trends that every crypto development company or investor must observe as we transition into the new year.
Factors to consider while investing in cryptocurrency development
Investing in cryptocurrency development is a big decision that undergoes a complex thought process. Thus, here is a list of various factors that one must consider or evaluate before investing in cryptocurrencies.
Market Capitalization
Assess both the Current Market Cap and the Fully Diluted Market Cap to understand the total value of all circulating coins or tokens and potential future supply increases. A significant difference between the two may indicate future price volatility.
Trading Volume
High and consistent trading volume is a positive sign, indicating broad interest and accessibility. Bitcoin’s example highlights the importance of volume, as it reached its highest trading volume during a significant market event in November 2022.
Security and Transparency
Scrutinize security measures, identifying potential points of failure and worst-case scenarios.
Examine transparency levels to detect any obscured information that should be openly accessible.
Recognize that security failures often occur on a human level, emphasizing the importance of strong governance.
Liquidity
Examine liquidity, which is crucial for investors, especially on decentralized exchanges. Actual liquidity measures how easily you can exit your position. Low liquidity, less than 10x your investment, poses challenges in selling at the current market price, emphasizing the importance of considering liquidity when investing in newer coins or tokens.
Use Cases and Real-world Adoption
- Evaluate the real-world applications of the cryptocurrency, considering its current and potential use cases.
- Assess the feasibility of achieving widespread adoption and the number of paying customers necessary for sustained profitability.
- Calculate the relationship between adoption size and market capitalization for valuable insights.
Tokenomics
- Scrutinize the token’s functionality and economics to assess its investment potential.
- Analyze the balance between token supply and demand, focusing on its role in a successful product.
- Investigate token generation mechanisms, lock-up periods, and potential burning triggers to gauge the sustainability of the investment.
Cryptocurrency Development Company
- Examine the background and skill set of the development team, ensuring they can deliver on their promises.
- Assess the team’s commitment and work ethic, often visible through their GitHub profiles.
- Seek expert opinions if needed to evaluate the technological backbone before making investment decisions.
Community Support
- Verify the authenticity of the community, distinguishing genuine users from speculators.
- Assess the community’s interest in the product and its potential impact on the asset’s traceability.
- Consider the implications of a community primarily driven by speculation and quick rewards.
Performance
- Leverage past performance as an indicator of future potential, acknowledging that it’s not a foolproof guarantee.
- Consider projects with proven track records, especially during bear markets, as they might present lower risks.
- Assess the team’s funding and ability to deliver during challenging market conditions as a key factor in investment decisions.
Do you know that institutional crypto investment is expected to reach $1 trillion by 2027?
Top Cryptocurrency Development Trends in 2024
While new trends frequently emerge in the crypto development space, certain trends have not only solidified their presence but have also laid the groundwork for giant cryptocurrency development companies. Two notable trends are expected to persist into 2024. Let us scroll down to check the two trends:
Decentralized Finance (DeFi)
- DeFi aims to replicate traditional financial systems on the blockchain, ensuring trustlessness and programmability.
- Initiated in 2019, DeFi has evolved into a comprehensive infrastructure for crypto users, with continued growth anticipated.
- Despite ongoing usability challenges, DeFi protocols are poised to serve as the cornerstone of the future financial ecosystem.
- Popular DeFi use cases include staking, lending & borrowing, liquidity mining, stablecoins, and synthetic assets.
Non-Fungible Tokens (NFTs)
- NFTs have garnered widespread adoption, attracting both tech and non-tech individuals to the crypto space with visually appealing assets.
- Contrary to common perception, NFTs represent a unit of account for unique, non-fungible assets beyond artwork.
- Examples of NFT use cases include (virtual) real estate, gaming characters & items, collectibles, music, and ticketing.
As we have checked the two trends that are opening up a wide range of opportunities for crypto enthusiasts or investors, we must also have a look at the latest cryptocurrencies that are expected to boom in 2024.
Top 10 Cryptocurrencies To Invest In 2024
Are you planning to invest in cryptocurrency development services or solutions, in the upcoming year? Well, you must know the popular cryptocurrencies that are expected to grow even more in 2024. Here is a curated list of the top 10 cryptocurrencies that can help you in better decision-making regarding investment.
1. Bitcoin (BTC)
Bitcoin remains a leading cryptocurrency development solution, favored for its stability and widespread adoption. With a very high market capitalization and trading volume, Bitcoin stands as a foundational asset. Its proven development team, massive community support, and best-in-class security contribute to its enduring performance. While high-risk, high-gain opportunities may be limited, Bitcoin remains a crucial inclusion in diversified portfolios.
- Market Capitalization: Very High
- Trading Volume: Very High
- Liquidity: Very High
- Security & Transparency: Best-in-Class
- Performance: Great
2. Ethereum (ETH)
As a top-ranking blockchain platform, Ethereum facilitates the creation of decentralized applications (dApps) and the execution of smart contracts. Its track record, substantial market cap, and ongoing cryptocurrency development make it a staple in a crypto investor’s portfolio.
- Market Capitalization: Very High
- Trading Volume: Very High
- Liquidity: Very High
- Security & Transparency: Great (though malicious smart contracts pose risks)
- Performance: Great
3. Cardano(ADA)
Cardano is a blockchain platform aiming for efficiency, sustainability, and interoperability in decentralized applications and smart contract execution. Despite its slower crypto development pace due to a meticulous research approach, Cardano boasts a resilient community.
- Market Capitalization: High
- Trading Volume: Medium
- Liquidity: Medium
- Security & Transparency: Great (with caution regarding potential risks from malicious smart contracts)
- Performance: Great
4. Polkadot (DOT)
Polkadot, facilitating interoperability between diverse blockchain networks, initially had significant hype that has cooled down. Ongoing cryptocurrency development and the realization of wallets and widely adopted use cases on various parachains will play a pivotal role in its continued success.
- Market Capitalization: High
- Trading Volume: Medium
- Liquidity: Medium
- Security & Transparency: Great (with a note of caution on potential risks from malicious smart contracts)
- Performance: Great
5. Solana
Solana, designed for high-speed, high-volume transactions, offers a scalable and efficient alternative in the blockchain space, particularly suitable for applications demanding rapid and frequent transactions. Despite setbacks linked to its association with Sam Bankman-Fried, the controversial FTX founder, Solana’s potential resurgence remains contingent on overcoming technical challenges and delivering on promises, particularly enhanced usability through smartphone integration. The risk and reward profile for SOL may exceed that of many other top projects.
- Market Capitalization: High
- Trading Volume: High
- Liquidity: High
- Security & Transparency: Concerning (Resource-intensive Solana nodes grant significant control to a few actors, resulting in past chain halts.)
- Performance: Great
6. Dogecoin (DOGE):
Dogecoin, initially a lighthearted parody of Bitcoin, lacks strong fundamentals but has demonstrated impressive past performance.
- Market Capitalization: High
- Trading Volume: High
- Liquidity: High
- Security & Transparency: Moderate (comparable to Bitcoin but with fewer miners, resulting in reduced security)
- Performance: Remarkable (volatile and heavily influenced by Elon Musk’s actions)
7. Avalanche (AVX):
Avalanche stands out as a scalable, interoperable, and decentralized infrastructure for decentralized applications (dApps) and smart contracts. Its innovative subnet approach, demonstrated with projects like DFK Chain in gaming, showcases promising potential for the future.
- Market Capitalization: High
- Trading Volume: Moderate
- Liquidity: Moderate
- Security & Transparency: Strong (over 100 independent nodes)
- Performance: Impressive
8. Binance Coin (BNB)
BNB is the largest “exchange coin,” or the leading cryptocurrency development solution that expands its use cases, including the Cosmos chain and EVM chain, providing bonuses for Binance CEX users. However, its centralized foundation could be vulnerable to regulatory influence or fraudulent activities, making investment decisions reliant on trust.
- Market Capitalization: High
- Trading Volume: High
- Liquidity: High
- Security & Transparency: Bad (centralized control poses security risks)
- Performance: Great
9. Polygon (formerly Matic Network)
Polygon, functioning as a “layer two” solution for Ethereum, facilitates the development and deployment of Ethereum-compatible decentralized applications (dApps). It stands out as the most potential crypto in the crypto development space. It is known for its scalability, interoperability, and widespread adoption driven by a low-cost structure.
- Market Capitalization: High
- Trading Volume: High
- Liquidity: High
- Security & Transparency: Great (Backed by over 100 independent nodes)
- Performance: Great
10. Thorchain
Thorchain addresses a crucial challenge in decentralized finance – enabling trustless trades across independent blockchains. Despite moderate adoption, its unique tokenomics and commitment to security make it a promising solution, although success requires dedicated effort and time. If successful, Thorchain has the potential to revolutionize a significant portion of the web3 landscape.
- Market Capitalization: Medium
- Trading Volume: Medium
- Liquidity: Medium
- Security & Transparency: Great (Addresses past bridge hacks in cross-chain swapping)
- Performance: Medium
Culmination
The closing months of 2023 have marked a revitalizing change in the sentiment surrounding the crypto industry. Amidst the increasing excitement, the influx of new market participants, and the escalating enthusiasm, it remains crucial to track key indicators and stay informed about significant crypto trends. Furthermore, for those looking forward to hiring comprehensive cryptocurrency development services, consider Antier as your trusted partner.
We are a a leading crypto development company, boasting skilled and qualified blockchain professionals who excel in crafting solutions tailored to your business needs. If you are contemplating investments in crypto development solutions for 2024, reach out to us for unparalleled expertise and impeccable solutions.
