Will 2024 be a big year for Ethereum and ETHDenver?

Author: James Wo, Founder & CEO, Digital Finance Group

Over the past few years, significant technological advancements have been made in scaling solutions, cross-chain interoperability, DeFi, NFTs, and ERC-404. DFG has strategically invested in various protocols, infrastructures, and ecosystems, with a strong emphasis on the well-established Ethereum ecosystem. The ETHDenver 2023 event attracted an impressive 30,000 attendees, setting a new record. This year’s ETHDenver is expected to bring together more than 20,000 community members to share ideas, innovate, and shape the future of blockchain technology.

ETHDenver has consistently served as a hub for innovation and creativity, fostering the convergence of blockchain technology, culture, and education. Beyond showcasing technological advancements, the event cultivates a sense of community and collaboration among participants. ETHDenver is a must-attend event that promises to be both enriching and inspiring. DFG is the sponsor of this year’s ETHDenver, as well as the co-host and co-sponsor of a couple of side events during ETHDenver. I am excited to be in Denver on February 25th for BUIDLWeek leading up to the main event, and I eagerly anticipate this year’s ETHDenver gathering.

Thrilled about upcoming innovations that aim to boost scalability, privacy, and overall utility of Ethereum, I believe the potential of rollups along with the implementation of EIP 4884 is expected to bring significant enhancements to layer-2 rollup scalability. I also look forward to advancements in DIDs, DeFi, DAOs, and hybrid applications. These areas signify key progressions that will propel the Ethereum ecosystem, underscoring the significance of privacy and Ethereum’s versatility as a payment method and a platform for governance and decentralized applications.

Decentralization, open participation, censorship resistance, and credible neutrality are the foundational principles of Ethereum. Technologies like rollups, zero-knowledge proofs, account abstraction, and privacy solutions can help reinforce these core values within Ethereum. I foresee Ethereum’s technology being applied more widely, encompassing secure and private online interactions and fostering more democratic governance forms.

Ethereum is a broad ecosystem supporting a wide range of applications. The emphasis on scalability, privacy, and decentralized governance underscores the ongoing efforts to realize Ethereum’s full potential as a decentralized platform for a new era of digital interaction and collaboration.

DFG has been deploying capital into protocols, infrastructures, and ecosystems like DeFi, gaming, and NFTs throughout 2023. In 2024, infrastructures and ecosystems are poised for significant evolution and growth. Here’s what I expect across these areas:

DeFi

• Regulation and Transparency: 2024 could see a focus on compliance and regulatory clarity, particularly affecting hybrid finance (HyFi) projects. True DeFi projects may remain outside the regulatory perimeter, but a crackdown on HyFi by US regulators is expected.
• Stablecoin Volumes: Predictions suggest that on-chain stablecoin volumes could surpass Visa’s transaction volumes, indicating a shift toward blockchain-based financial transactions.
• Ethereum and Transaction Flow: The proportion of staked ETH that is liquid staked is expected to increase, enhancing the Ethereum ecosystem’s liquidity and utility. Additionally, private transaction growth and the prevalence of gasless transactions are anticipated to rise, with rollups expected to significantly increase in terms of layer-1 transaction count.

Web3 Gaming

• Increased Blockchain Integration: More sophisticated use of blockchain elements in game mechanics and a greater variety of Web3 games across different genres are expected. This year may also witness more collaboration between traditional gaming industry players and Web3 startups. ERC-404 could revolutionize how in-game assets are owned, traded, and integrated across different games and platforms. Furthermore, the interoperability facilitated by ERC-404 could enable a more connected and cohesive gaming universe, where assets from one game could be utilized or acknowledged in another, thereby enriching the overall gaming experience.
• Mainstream Adoption Challenges: Onboarding a larger player base remains a challenge, but improvements in developer tools for integrating Web3 elements and making blockchain components more intuitive could drive broader adoption. ERC-404’s ability to fractionalize NFT ownership lowers the entry barrier for players to acquire and trade high-value in-game items, potentially leading to more vibrant and liquid in-game economies.

NFTs

• Growth and Diversification: NFTs are poised to be a major driver of Web3 adoption in 2024, but successful projects will likely diverge significantly from current trends. The focus might shift towards unique applications and integration into broader digital ecosystems.
• Liquidity and Accessibility: ERC-404 tokenizes NFTs, allowing them to be traded as fungible tokens on DEXs while retaining their unique identities. This hybrid approach aims to address some of the core issues faced by the NFT market by increasing liquidity and accessibility. By solving liquidity issues and enabling fractional ownership, the ERC-404 standard could attract a broader audience to the NFT market, including both collectors and investors.

There will be a broader trend toward integration, sophistication, and regulatory adaptation within the Web3 space in 2024. The emphasis on bridging the gap between blockchains and ecosystems, coupled with advancements in gaming and NFTs, suggests a year of significant maturation and potential mainstream breakthroughs for Web3 technologies. See you in Denver!

About DFG

Digital Finance Group (DFG) is a global blockchain and cryptocurrency investment firm founded in 2015 with assets under management of over $1 billion through a wide range of sectors within the blockchain ecosystem such as Web 3.0, CeFi, DeFi, NFTs, and the Polkadot ecosystem.

Investments include Circle, Ledger, Coinlist, FV Bank, Astar, ChainSafe, and over 100 more. DFG intends to create value, through analytical research, based on the most impactful and promising global blockchain and Web 3.0 projects that will bring a paradigm shift to the world.

DFG Website: https://dfg.group
DFG Twitter: @DFG__Official
DFG LinkedIn: DFG