Top 10 Narratives that Will Impact the Development of the Encryption World in 2024

In 2024, the encryption industry witnessed the rise of memecoin, the development of prediction markets, innovative liquidity stake tokens, the threat of Quantum Computing, the rise of DePINs, and the popularization of AI trading tools, among other key trends, driving the integration of blockchain technology with real-world assets' depth. This article is sourced from Lorena Nessi's work and compiled by Plain Blockchain. (Background: TBW's exclusive: VC reveals hidden changes in the encryption market, has the super bull market become a thing of the past?) 2024 is an important year for the encryption industry, full of exciting trends and moments that continue to spark community discussions. From the headlines generated by memecoin to the tokenization of real assets, the entire year was filled with stories that pushed the blockchain into new territories. Telegram games made cryptocurrencies more accessible to ordinary users, while prediction markets and liquidity stake tokens provided new ways to interact with digital assets. Additionally, the competition to address quantum threats, rollups, and modular blockchains made 2024 an extraordinary year. These ten trends demonstrate the vitality and innovation driving the advancement of the encryption world. 1. The rise of memecoin Memecoin is an unprecedented social phenomenon. Despite some viewing them as simple, trivial, or questioning their legitimacy as digital assets, considering them poor financial decisions or just a passing trend and a product of viral marketing, they have undeniably occupied a place in the encryption ecosystem, integrating humor, community participation, innovative digital value creation, and a broader cultural movement. 1) Grassroots movements and the celebrity effect These tokens respond to various social, political, and economic situations, reflecting cultural spirit. They rely on celebrity culture and are often boosted by influential figures, often increasing their visibility. Memecoins often thrive on grassroots movements, where communities unite around common ideas and values, igniting collective action and creating viral trends. Memecoins also highlight the role of participation culture, allowing users to promote the widespread use of tokens and shape narratives through collective efforts. Sometimes, they may just be passing fads. 2) Memecoin in 2024: Milestones and influence In 2024, memecoins solidified their position as a decisive force in the encryption field. Tokens deeply influenced by Shiba Inu (SHIB), such as Neiro (NEIRO) and FLOKI Inu (FLOKI) — the latter introduced a debit card — as well as PepeCoin (PEPE), which leverages internet memes and nostalgic culture, demonstrate how humor and cultural correlation have sparked significant financial activity. 2024 saw a notable example of memecoin's influence when President Donald Trump appointed Elon Musk to lead the newly established Department of Government Efficiency (DOGE). The agency's mission is to streamline the operations of the federal government and reduce inefficiency, with the acronym intentionally paying homage to Dogecoin (DOGE), a widely supported object by Musk. 3) Intersection of technology, culture, and society Memecoin reflects the intersection of technology, culture, society, and politics, showcasing how seemingly fanciful creativity challenges traditional values and innovative concepts. For many, they serve as a gateway into the encryption world, offering an easily accessible entry point for technology-driven digital assets. 2. The rise of prediction markets In 2024, platforms like Kalshi and Polymarket gained widespread follow due to their decentralized nature, allowing users to predict events and earn rewards. These platforms cover various topics including sports event outcomes, election results, cryptocurrency prices, and utilize blockchain technology to ensure transparency and security. During the 2024 US presidential election, Kalshi's bets exceeded $100 million, demonstrating the potential of prediction markets in gauging public sentiment. However, this rise also sparked criticism. Some analysts believe that low liquidity and susceptibility to manipulation weaken the reliability of prediction markets as forecasting tools. Regulatory scrutiny has also intensified. Kalshi won a legal battle with the Commodity Futures Trading Commission (CFTC) to offer political event contracts, but concerns about legality and market manipulation persist. Additionally, some have expressed moral objections, questioning the ethics of gambling on elections. Despite these challenges, the rise of prediction markets highlights the demand for decentralized solutions to real-world problems, consolidating their position as an important trend in the encryption field in 2024. 3. Liquidity stake tokens (LSTs) and liquidity re-stake tokens (LRTs) In 2024, liquidity stake tokens (LSTs) and liquidity re-stake tokens (LRTs) gradually gained prominence, building on early innovations and gaining greater influence. While EigenLayer launched its Mainnet in mid-2023, its impact became more evident in 2024 with the gradual rise of restaking. By mid-year, over 33.8 million ETH had been staked, demonstrating market confidence in the Ethereum Proof of Stake (PoS) model and the feasibility of liquidity staking. LSTs allow users to maintain liquidity while staking assets, enabling decentralized finance activities such as borrowing and trading. LRTs enhance this concept by allowing validators to restake assets on other networks or support services like rollups, further enhancing their functionality and rewards. Despite the significant adoption in 2024, achieving comprehensive adoption in all areas remains an ongoing process. Key platforms and competition EigenLayer made significant progress in restaking and had restaked over 4.1 million ETH by April 2024. Other platforms such as Lido Finance, Rocket Pool, and Frax Finance have also made important contributions, expanding the applications of LSTs and integrating them into the decentralized finance ecosystem. These projects played a crucial role in driving innovation and accessibility in the staking field. The progress in 2024 has made LSTs and LRTs key tools in the staking ecosystem, laying the foundation for the future integration of blockchain technology and decentralized finance. 4. Threat of Quantum Computing The discussion of Quantum Computing's impact on blockchain security became a focus in 2024. While Quantum Computing technology provides enormous potential for scientific breakthroughs and innovation, it poses a significant threat to the core of cryptocurrencies — security. 1) Quantum threat Quantum computers harness the power of quantum mechanics and may potentially crack the protective...