Bitcoin halving not only changes the economic structure of the cryptocurrency market but also creates new opportunities for the development of blockchain technology. After each halving, the ecosystem sees innovation, increased interest from investors and closer supervision from regulators.
Lessons from Previous Halving Cycles
Each halving cycle in the past has created distinct trends:
- 2012: Bitcoin asserts its potential as a borderless payment method. However, transaction fees and security issues have slowed down development.
- 2016: The boom of ICOs democratizes venture capital, but also leads to abuse, causing many projects to fail.
- 2020: DeFi, NFT and P2E trends are growing strongly, but many projects without a solid foundation have collapsed early.
2024 Cycle: New Opportunities and Challenges
The post-halving period of 2024 begins with the approval of Bitcoin ETFs in the US, bringing crypto assets into the traditional financial system. This is an important step, which can open up opportunities for other countries to integrate cryptocurrencies into national reserves.
In addition, some important trends are taking shape:
1. Tokenization of real assets (RWA)
- Applying blockchain in real estate, bonds, treasury bills and traditional financial sectors helps decentralize and optimize capital flows.
2. The combination of Blockchain and AI
- Blockchain can ensure privacy and data security when applying AI to asset management and identity verification.
3. Microtransactions
- Blockchain is reducing transaction costs, paving the way for micropayments and more flexible digital economic models.
4. The Rise of Memecoins and Celebrity Tokens
- Memecoins continue to gain traction despite their lack of real-world utility.
5. Stablecoins and Payment Systems
With improvements in transaction speeds and costs, stablecoins are increasingly being used as an alternative to traditional payment methods.
Early Data and Trend Predictions
Research from Toronet Research shows that memecoins, AI-related tokens, and RWA tokens are leading the growth. Layer 2 projects are also growing faster than Layer 1, indicating a shift towards blockchain infrastructure.
CoinGecko’s Q3 2024 report confirms that these categories are attracting the most traffic. However, as with previous cycles, areas that have boomed but lacked real utility may soon be eliminated.
Is Blockchain Breaking the Old Cycle?
With increased institutional involvement and clearer regulations, the 2024 cycle could mark a significant turning point for blockchain. If the technology continues to evolve in a more practical direction, it could have a lasting impact rather than just short-term booms.
The shift to real utility, combined with widespread adoption by large institutions, could break blockchain out of the cycle of growth and decline that has been repeated for over a decade.
