The
first
half
of
2024
has
started
a
new
cycle
for
the
crypto’s
adoption.
The
long
awaited
approval
of
Bitcoin
ETFs
was
a
decisive
factor
for
this
new
cycle,
along
with
strong
price
momentum
that
led
to
bitcoin
reaching
a
new
all-time
high.
This
not
only
pushed
bitcoin
to
the
doorstep
of
institutional
adoption
again,
but
it
also
positioned
the
market
for
another
potential
bull
market
cycle.
These
cycles
have
been
marked
not
only
by
the
introduction
of
new
projects,
from
Bittensor
and
ZKSync,
to
Bonk
and
Dogwifhat,
but
also
by
strong
price
appreciation
of
many
digital
assets.
With
a
higher
beta
compared
to
bitcoin,
assets
of
varying
sizes
and
sectors
often
experience
greater
volatility,
reflecting
investors’
expectations
of
higher
returns.
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Several
trends
are
shaping
the
altcoin
market
in
2024
that
signify
a
focus
on
innovation,
sustainability,
and
exploration
of
new
use
cases,
driving
growth
among
altcoins.
Re-staking
has
emerged
as
a
notable
vertical
for
this
new
cycle,
which
involves
continuously
staking
the
rewards
earned
from
staking
tokens,
compounding
the
returns
over
time.
Projects
like
EigenLayer
(EIGEN),
EtherFi
(ETHFI),
and
Renzo
(REZ)
have
implemented
mechanisms
that
encourage
users
to
restake
their
staking
rewards,
thereby
increasing
their
stake
in
the
network
and
contributing
to
its
security
and
stability.
Altcoins
are
increasingly
adopting
Layer2
scaling
solutions
such
as
Optimistic
Rollups,
zkRollups
and
side-chains
to
improve
transaction
speeds
and
reduce
fees.
Projects
in
this
category
include
Arbitrum
(ARB),
Optimism
(OP),
Polygon
(MATIC),
Starknet
(STRK),
among
many
others.
This
trend
aims
to
enhance
user
experience
and
attract
more
users
to
these
projects’
platforms.
Interoperability
between
blockchain
networks
is
also
a
growing
trend.
Some
projects
are
collaborating
and
building
bridges
to
enable
asset
transfers
and
communication
across
disparate
blockchains.
This
trend
aims
to
create
a
more
interconnected
and
efficient
blockchain
ecosystem
instead
of
many
different
siloed
blockchains.
Examples
of
such
projects
include
Axelar
(AXL),
Across
(ACX)
and
Stargate
(STG).
With
the
rise
of
Layer
2
solutions
and
interoperability,
modular
blockchains
represent
the
next
phase
of
digital
assets’
evolution.
With
their
adaptable
and
customizable
design,
these
offer
a
flexible
framework
where
developers
can
plug-and-play
modules
like
consensus
mechanisms,
token
standards
and
governance
models.
Blockchains
such
as
Celestia
(TIA)
and
Dymension
(DYM)
are
using
this
modularity
to
enhance
scalability,
interoperability
and
security.
Parallelized
Ethereum
Virtual
Machines
(EVMs)
break
down
smart
contract
execution
into
parallel
tasks,
harnessing
the
power
of
multiple
nodes
simultaneously.
The
most
popular
parallelized
EVMs,
such
as
Sei
(SEI),
Canto
(CANTO),
Nomad,
and
NeonEVM
(NEON),
are
attempting
to
do
this
by
processing
transactions
off-chain,
then
aggregating
them
back
onto
the
Ethereum
mainnet.
This
approach
drastically
improves
transaction
throughput
and
reduces
latency,
addressing
Ethereum’s
historic
limitations.
Current
crypto
market
prices
seem
to
indicate
that
a
bull
market
is
underway,
mega
caps
may
still
have
room
to
grow
before
smaller
coins
outperform
the
rest
of
the
market.
However,
this
phase
may
not
be
far
off
and,
once
it
begins,
being
under-positioned
could
be
difficult
and
potentially
costly,
especially
as
institutional
adoption
grows
and
the
need
to
generate
alpha
increases.
Note:
The
views
expressed
in
this
column
are
those
of
the
author
and
do
not
necessarily
reflect
those
of
CoinDesk,
Inc.
or
its
owners
and
affiliates.