It's an understatement to say that the crypto space is a whirlwind of both innovation and confusion. With constantly changing sentiments and market narratives, it's sometimes difficult for crypto curious users and beginners to get into the crypto ecosystem. If you're finding yourself lost among the many cryptocurrency categories, don't fret — this guide to predictions and narratives for the 2024 crypto bull run will get you up to speed. While predicting the future of crypto is never foolproof, we can get a rough idea of what the next crypto bull run will look like with the signs and narratives brewing in the background of the crypto scene.
From exploring the catalysts propelling bullish sentiment to understanding why a particular category is popular during the crypto bull market, here's everything you'll need to know when it comes to surviving and trying to come out on top.
What is a crypto bull market?
Crypto bull markets refer to periods of sustained price increases, trader optimism, and positive feedback loops that fuel crypto price increases. While traditional bull markets for other assets have a common benchmark of about a 20% increase in a broad market index like the S&P 500, crypto markets often have high volatility and can face 20% surges and declines in a matter of hours. As such, crypto bull market cycles tend to be faster and more dramatic than traditional ones, where crypto prices can surge much higher in a shorter timeframe.
Signs pointing to a bullish future
History often repeats itself, and the cyclical bullish and bearish nature of the crypto market is no exception as we've witnessed previous crypto bull runs fueled by innovation and mainstream adoption. With Bitcoin's meteoric rise from its $16,000 lows, it's safe to say we're currently in a crypto bull market. Does this imply that the crypto market still has more room to run? While past performance doesn't guarantee future results, several factors could be hinting at a potential extended crypto bull run:
The case for risk-on assets with Fed rate cuts
In a previous article, we explained how the US Federal Reserve can impact crypto prices with its decisions and we mentioned how the rate cuts could possibly trigger an inflow of funds into risk-on assets like cryptocurrencies. With U.S. inflation slowing to an expected crawl, talks of rate cuts for the US economy have certainly been on the rise as the Fed continues to face mounting pressure on cutting interest rates to keep economic growth strong. As chairman Jerome Powell recently stated that the Fed isn't far from the confidence it needs to cut rates, we're seeing an increased flow of funds into assets like stocks and cryptocurrencies. This could hint at the coming of a 2024 crypto bull run as crypto traders attempt to front-run this good news and get in ahead of the mainstream crowd.
Institutional and retail TradFi interest on the rise
While previously seen as a fringe movement, institutions and retail TradFi traders are no longer hesitant and are now taking a keen interest in the crypto market. Major investment firms, hedge funds, and even traditional banks are dipping their toes into the digital asset pool. This is largely due to the approval of a spot Bitcoin ETF that's made it easy for big funds and retail traders to gain access to the once-elusive digital asset. This influx of institutional capital could significantly impact market momentum, potentially propelling an extended crypto bull market.
Historical cycles and market sentiment
Think back to 2017, when the initial coin offering (ICO) craze sent shockwaves through the market. Then came the decentralized finance (DeFi) boom of 2020, followed by the rise of non-fungible tokens (NFTs) in 2021. These cycles suggest a growing crypto market as it's one that's constantly evolving and finding new avenues for growth. While past performance doesn't guarantee future results, analyzing historical cycles can offer a glimpse into potential trends. With this bullish momentum and news propelling crypto prices, we're possibly seeing the stars align here for the next crypto bull run as news of the spot Bitcoin ETF approval aligns with the 4-year cycle of a typical Bitcoin halving.
Top 5 trends and narratives of the next crypto bull run
While Bitcoin remains the undisputed heavyweight champion of the crypto world, crypto traders are already speculating on what might be the next big thing in the crypto scene. From AI to Layer 2s, let's delve into the following exciting areas with immense potential for the next crypto bull run.
1. Crypto and Artificial Intelligence (AI): the perfect innovation match?
AI is rapidly transforming industries, and the intersection of AI and blockchain technology holds immense promise for the crypto market. As an underrated match, crypto certainly has the potential to revolutionize AI because of the synergies in decentralization and security. Imagine a future where AI algorithms analyze massive datasets to optimize trading strategies and identify undervalued assets. This is the potential that AI integration with blockchain unlocks. With that said, here are some blockchain-specific applications for AI that are worth getting excited over for the next crypto bull run:
Enhanced security: powerful AI algorithms constantly scan massive amounts of blockchain transaction data, acting like vigilant guards. They search for unusual patterns that might signal fraudulent activity, significantly boosting security and trust within the blockchain network.
Smart contract optimization: AI can help with design efficiency and optimize smart contracts on blockchains. By analyzing data and past contract behavior, AI can identify potential vulnerabilities and ensure that contracts function as intended.
Improved scalability: AI can analyze network usage patterns and optimize resource allocation on blockchains to prevent processing bottlenecks. This can help address scalability challenges faced by some blockchain platforms.
Better data management: analyzing large data is a pro of using AI, and this can be used to blockchains' advantage with the typically large datasets stored. It can also help develop new methods for data privacy preservation, allowing for data sharing within blockchain networks while keeping them highly secure.
Automated efficiency: functioning as an automation specialist for DApps, AI can effectively handle data verification, compliance checks, and even trigger actions based on specific conditions set within smart contracts.
While some AI-focused crypto projects are still in their infancy, the potential for disruption and innovation in this space is undeniable. From the creation of autonomous AI agents with Fetch.ai to accessing a huge range of AI services on SingularityNET's AI marketplace, we're witnessing the dawn of a new era in intelligent applications built on secure and transparent blockchains and its associated excitement that could spark the next crypto bull-run rally.
2. Decentralized Physical Infrastructure Networks (DePIN): powering the future?
For many crypto newcomers, DePIN seems to be the missing puzzle piece for mass crypto adoption. If you recall, during the pandemic, the world was in a shortage of graphics processing units (GPUs) as the lockdown hampered manufacturing efforts of major producers like Nvidia and AMD. This ultimately caused the utility of GPUs to be centralized as scalpers and institutions snapped up these essential components. With the growing demand for GPUs in AI processing, we might once again witness the same situation play out as prices for said graphics cards skyrocket due to low supply and high demand. DePIN could effectively prevent similar situations in the future by creating a decentralized network of GPUs. Individuals could contribute their spare computing power to the network and earn crypto in return, thereby alleviating pressure on manufacturers and democratizing access to powerful computing resources needed for various blockchain and AI applications.
As the DePIN industry matures, we can expect to see DePIN encompassing a wider range of physical infrastructure, fostering a more equitable and resilient digital ecosystem. This shift towards decentralized infrastructure could be a significant catalyst for the next crypto bull run by creating a more robust and inclusive foundation for the entire crypto space, ultimately attracting a broader range of users and adoption on the crypto scene. From Render's ambitions of connecting individuals seeking resource-intense rendering services with those holding unused GPU resources to Filecoin's take on decentralized data storage services, the DePIN narrative certainly has the potential to ignite the next wave of the crypto bull market.
3. Decentralized exchanges (DEXs): finally connecting DEX success and token value?
Traditionally, centralized exchanges (CEXs) have long dominated the crypto trading landscape. With their user-friendly interfaces and always-available user support, CEXs have successfully replicated the TradFi trading experience and have been the go-to for those with a TradFi background looking to get into trading crypto. However, a new wave of innovation is emerging in the form of DEXs. Like OKX DEX, these autonomous platforms offer a distinct approach to trading that's vastly different to the experience offered by CEXs. Whether you prefer DEXs with order book models or ones with automated market maker models, DEXs have been rising in popularity because they prioritize user control, security, and a new narrative that can drive DEX tokens to new highs: revenue sharing.
Unlike CEXs, which collect trading fees and distribute them at their discretion, DEXs often use a different model that explores user liquidity provision. In a nutshell, users provide liquidity, which is essentially the crypto assets available for trading on the DEX, and are directly rewarded with a part of the trading fees generated. This approach represents a significant paradigm shift in how yield is distributed within a typical cryptocurrency exchange. By incentivizing users to contribute liquidity, DEXs can create win-win scenarios. In theory, liquidity providers can earn passive returns as a reward for their participation, while the DEX itself can benefit from a deeper pool of available assets. This deeper pool is meant, in turn, to foster a more vibrant and sustainable trading environment for all users.
Although this is a model that most DEXs subscribe to, market leaders like Uniswap have yet to incorporate this. However, with a recent proposal, a new wave of excitement might be coming to DEXs for the next crypto bull run.
Revenue-sharing: a breath of fresh air for governance tokens
Despite being hugely lucrative and boasting an active userbase, some crypto enthusiasts claim that holding governance tokens for DEXs like Uniswap feels disconnected from the success it's currently enjoying. This is because UNI holders don't enjoy any added utility and rewards besides the benefit of governance and voting rights in determining Uniswap's future. Fortunately, Uniswap seems to be changing things up with their recent temperature check.
While Uniswap was once divided on the idea of a revenue-sharing model because of possible legal complications and securities violations, this seems to have been resolved with the recent dismissal of their charges. As such, the Uniswap Foundation and Uniswap DAO seem to now be considering the idea of sharing Uniswap fees with UNI holders. According to Uniswap's recent temperature check, Uniswap is now proposing a fee mechanism that rewards UNI token holders that have delegated and staked their tokens. With 100% of voters in the snapshot poll backing the proposal to activate protocol governance, we could see Uniswap's reward-sharing mechanism being approved and implemented sooner than expected. Based on Uniswap's overall earnings, the upgrade may potentially pay out more than $150 million in annual dividends, giving UNI holders added utility beyond simply being a governance token for the Uniswap DEX.
Besides causing an immediate 60% surge to UNI prices, this upgrade may also cause other DEXs to follow suit and distribute revenue to token holders and stakers. An example would be Frax Finance's recent tweet that discusses the possibility of reinstating revenue-sharing among veFXS stakers. As such, we might see a renewed interest in trading governance tokens for this next crypto bull run as traders speculate on how and when entities like Jupiter Aggregator will announce their upcoming plans to share DEX revenue.
4. Layer 2 solutions: scaling for the future?
As blockchain technology gains mainstream adoption, its scalability limitations can become apparent as blockchain projects grapple with the blockchain trilemma of scalability, decentralization, and security. Such scalability challenges include transaction processing times that can slow down during peak trading periods and ballooning gas fees that may price out crypto traders with smaller trading accounts. Thankfully, with the innovation of Layer 2 solutions, scalability issues will be a thing of the past as they tackle these challenges by processing transactions off the main blockchain. This frees up blockchain resources while still leveraging its underlying security, thus allowing for overall faster and more affordable transactions for the masses.
The world of Layer 2 solutions is brimming with innovation as they make use of unique scaling technology to make blockchain scalability possible. Some prominent examples that actively tackle blockchain scalability include Optimism, Polygon, and Immutable X. As popular scalability solutions that make use of optimistic rollup and zero-knowledge rollup technology, each Layer 2 solution offers a distinct approach to solving scalability bottlenecks.
From the speed and affordability of Optimism's optimistic rollups and the concise proofs of zero-knowledge rollups to the high throughput of Polygon thanks to it being a sidechain, these advanced Layer 2 developments demonstrate the versatility of the constantly evolving Layer 2 landscape that caters to a wide range of blockchain use cases. With their continued refinement throughout the next crypto bull run, we could see a massive inflow in trades and total value locked for Layer 2s as they pave the way for mass adoption and a future where blockchain is no longer limited by its processing capacity.
5. Memecoins: a play on crypto bull market euphoria
Memecoins are a unique phenomenon in the crypto world. By harnessing the power of internet culture and poking fun at the seriousness of the crypto industry, these lighthearted cryptocurrencies often emerge from internet jokes, viral trends, or popular culture references. While some memecoins have achieved surprising success, they're generally considered highly speculative trades given their lack of fundamentals and should only be dabbled with if you have a stomach for volatility.
From meme giants like Dogecoin and Shiba Inu to new memes on the block like Dogwifhat and Memecoin, memecoins have come a long way. Despite starting out as mere internet jokes, memecoins are slowly becoming an established narrative for the next crypto bull run as more crypto curious traders dip their toes into the world of crypto. For curious dabblers and speculators with a taste for adventure and a healthy dose of caution, memecoins might offer a small allocation in a diversified trading portfolio. However, it's vital to remember that memecoins are inherently volatile and carry a high degree of risk. As such, trading memecoins for the next crypto bull run should be approached with a clear understanding of the risks involved, as the meme euphoria can be easily upended with a swift and sudden crash.
Navigating the next crypto bull run with caution
With massive overnight surges and huge volatility, the allure of the next crypto bull run is undeniable. However, even for those comfortable with high volatility, approaching the crypto market with a cautious and informed perspective is crucial. Here are some golden rules to remember:
Do Your Own Research (DYOR): Never blindly trade any project just because you find the bull market narrative attractive. Before diving into a trade, it's important to research the underlying technology of the crypto project, the team behind it, and its long-term roadmap.
Diversification is key: Even if you're trading with full conviction for your potential bull market narratives, it's important to not put all your eggs in one basket. Ideally, traders should spread trades across different coins and tokens with varying risk profiles. This helps mitigate potential losses and increase your overall portfolio resilience.
Beware of FOMO and hype: Unrealistic expectations and social media hype can often lead to impulsive and emotional trading decisions. Stick to your trading plan and avoid getting caught up in the frenzy, even if certain sectors are in a blistering rally.
Final words and next steps
With its ever-evolving landscape and potential for both euphoria and despair, the crypto market can be a thrilling yet daunting space for all crypto traders. However, by understanding the historical cycles, the factors influencing the next bull run, and the trending narratives like AI, DePINs, DEXs, Layer 2 solutions, and even memecoins (with a dose of caution), you'll be well-equipped to navigate this exciting phase.
Keen to learn more about trading during a bull market? Read up on our guides on how to DCA with BTC over time and learn to have a better entry with crypto cash secured put options.
FAQs about crypto bull runs
How long does a crypto bull run usually last?
As the exact duration of a bull run in crypto can vary widely from months to years, traders should ultimately take a cautious approach to trading in a crypto bull market and adopt a longer-term trading perspective instead of only trying to capture small movements.
When is the next crypto bull run coming?
With the spot Bitcoin ETF being approved and the Bitcoin halving and US Federal Reserve rate cuts on the horizon, there are plenty of telltale signs hinting that the next crypto bull run could be coming sooner than expected.
How many crypto bull runs have there been?
According to the charts, the crypto markets have enjoyed three major bull runs so far. These include the 2013 bull run, the 2017 bull run, and the 2021 bull run. Whether 2024 will be the year of the next crypto bull run remains to be seen.
What should I buy for the next crypto bull run?
While there's no way to know for sure which coins and tokens will enjoy huge surges and rallies, the following predictions and narratives listed above are likely to enjoy a solid run given the current excitement behind them. Ultimately, crypto traders should always do their own research.
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