An Overview of 10 Major Crypto Trends and Representative Projects to Watch in 2024

Author: Layergg

Compiled by: Luffy, Foresight News

The bull market has sounded its horn, and as we approach 2024, which tracks and projects should we focus on? Below are 10 trends and representative projects worth paying attention to in the coming year.

zk Rollup

Before 2022, the debate in the Rollup space mainly focused on whether Optimistic or zk Rollup technology was superior.

However, with the reduction of L2 costs following EIP-4844 and the launch of several large projects, the previously calm L2 war is expected to reignite comprehensively. The key lies in how L2 can build its ecosystem.

Projects to watch: zkSync, Starknet

Rollup Middleware

After EIP-4844 reduced the costs of Rollup, the real proliferation of Rollup will begin. This track includes the following subfields:

• Rollup as a Service

• Shared Ordering

• Rollup SDK

Hundreds to thousands of AppRollups will emerge around several mainstream Rollup projects.

Projects to watch: Gelato Network, AltLayer, Espresso Systems

Interoperability

As the number of blockchains continues to grow, the demand for cross-chain infrastructure will increase exponentially. However, there are still some issues:

• High costs

• Hacking incidents

• Synthetic assets

• Fragmented liquidity

Despite various issues with existing cross-chain bridges, newly launched cross-chain solutions are expected to make breakthroughs.

Projects to watch: LayerZero, Wormhole

Parallel EVM

The advantages of Parallel EVM include:

• Faster block times

• Higher TPS

• Low fees

This technology has been validated through inscription stress tests and will have a strong appeal to DApp developers.

Projects to watch: Sei Network, Neon, Monad

Data Availability

The data availability layer is crucial for the scalability, security, and efficiency of blockchain networks. Its characteristics and advantages are:

• Improved scalability

• Transparency and ease of verification

• Compatibility with L2 solutions

• Reduced costs

As the core of modular narratives, the DA layer will be adopted by numerous projects.

Projects to watch: Celestia, Avail, EigenLayer

Bitcoin Ecosystem

A Bitcoin spot ETF is likely to launch in the first quarter of 2024. Additionally, with the development of Inscription (BRC-20), the Bitcoin ecosystem will remain a key focus area in 2024.

Moreover, efforts to unlock $830 billion in Bitcoin liquidity will continue.

Projects to watch: Stack, Babylon

Decentralized Machine Learning

Artificial intelligence will continue to play a central role in the narrative of 2024, with AI computing power becoming one of the mainstream fields.

As AI continues to evolve, the market is expected to increasingly shift its focus toward data mining, a fundamental aspect of AI technology.

Projects to watch: gensyn, Bittensor

Decentralized Social

Most SocialFi projects have yet to gain a massive user base. Nevertheless, the story of friend.tech is a compelling example that demonstrates the limitless potential of user-driven social networks.

Projects to watch: friend.tech, Lens Protocol, Farcaster

Distributed Validator Technology

DVT allows multiple nodes to act as a single Ethereum PoS validator, thereby enhancing security and decentralization. As Vitalik Buterin has warned, major staking service providers currently face centralization issues.

The key point here is that LSD will continue to be a high-growth industry in the coming years, naturally sparking interest in DVT along the way.

Projects to watch: ssv network, Obol Network, diva

Ethereum Re-staking

"Re-staking" refers to the reuse of staked Ethereum or other cryptocurrencies by nodes acting as validators for various protocols.

A key point to note here is the potential income from EigenLayer.

Ethereum staking annual yield (~5%) + Eigenlayer re-staking rewards (~10%) + LRT protocol token issuance (~10%) = potential annual yield

As Ethereum enters a bull market, there may be increased attention on the potential of re-staking protocols.

Projects to watch: EigenLayer