Tokenomics | Experts discuss the outlook for cryptocurrencies in 2024

The cryptocurrency market had a good run in 2023 with the world’s largest crypto Bitcon rallying more than 150%, and the second largest Ethereum gaining around 80%. Cryptocurrencies began 2024 on a stronger note with Bitcoin hitting its highest levels since April 2022.

The green signal for a Bitcoin exchange traded fund (ETF) in the US also gave the market boost.

There are some important events lined up for both Bitcoin and Ethereum in 2024. Bitcoin halving is scheduled in April, which will cut the rate at which Bitcoins are released for circulation, while Ethereum is set for an upgrade that will make it more scalable. Business leaders in Davos for the World Economic Forum (WEF) also discussed the future of digital assets and cryptocurrencies.

Speaking to CNBC-TV18, Nischal Shetty, Co-Fouder at Shardeum talked about the approval and launch of 11 Bitcoin ETFs in the US, with a staggering initial trading volume exceeding $4 billion. He sees this development as a positive momentum builder for the entire sector.

“I think over the last week or so since they have been trading, I think they've crossed over $7 to $8 billion and that's a market cap of I think close to $28 billion locked in these ETFs now and that's a great sign for Bitcoin,” he noted.

As the crypto ecosystem gains momentum globally, Avinash Shekhar, Co-Founder and CEO at PI42 Exchange highlighted the challenges faced in India, particularly in terms of regulations and taxation. The industry is eagerly awaiting clarity from the government to encourage more innovation within the country.

Shekhar said, “Indians are somehow not clear that whether if they are in India, and they innovate, and they create a like a billion-dollar Web3 company, what will happen from a regulation and taxation point of view. So I think that is something which is, I mean, obviously, from our side, we are working with the government are trying to explain them. But I think that is one space on the regulation where I think as economy, we have to be very quick in terms of giving clarity to the industry.”