Galaxy Digital, led by virtual currency mogul Mike Novogratz, predicted There has been a significant surge in activity within the cryptocurrency and AI sectors.
The company expects protocol adoption and venture investment to increase, primarily due to increased demand for GPUs.
These GPUs are essential for training and running AI models, and even the most established computing providers are starting to deploy dedicated servers for AI-related tools.
Other important predictions
Galaxy Digital analysts have some other important predictions regarding the world of cryptocurrencies. The US Bitcoin ETF is expected to attract significant inflows, reshaping the functioning of the Bitcoin market and impacting asset managers, brokers and exchanges across crypto and traditional finance.
The upcoming Bitcoin halving event is expected to pose challenges to miners and may lead to consolidation. However, this is consistent with monetary easing from central banks around the world and points to a strong story for Bitcoin.
Ethereum’s journey towards modularity will continue, with upgrades supporting layer 2 solutions and incorporating technologies such as re-staking.
However, Ethereum will face stiff competition from alternative blockchains like Solana and potentially Bitcoin, which could gain renewed interest as a platform.
Despite the growth of decentralized finance (DeFi), it is not expected to challenge traditional finance in 2024. However, innovation within DeFi will contribute to the evolution of the on-chain environment. Even though the growth of real-world on-chain assets may stall, the focus on tokenization remains an important trend.
Stablecoins, especially those based outside the United States, are expected to see an increase in supply and usage due to the resurgence of the cryptocurrency market.
Novogratz remains bullish
As reported by U.Today, Novogratz remains bullish on Bitcoin in 2024. Countering some bearish experts, he expects Bitcoin to trade higher.
Cryptocurrency King believes that investors are likely to sell their holdings in Grayscale Bitcoin Trust while reinvesting in other Bitcoin ETFs, with BTCO being the preferred option.
