Crypto spending is rising globally, and crypto enthusiasts are at the forefront of this trend. More people are using cryptocurrencies for everyday transactions, moving beyond just investments. According to a report, global crypto transactions surged to $15.8 trillion in 2022, indicating how mainstream digital currencies are becoming.

In the UAE, the government’s progressive stance on blockchain technology has fostered an environment where cryptocurrency usage is growing rapidly. For instance, Dubai is positioning itself as a hub for crypto innovation, with around 27% of UAE residents saying they have used or plan to use cryptocurrencies for purchases.

1. Capital Raising, Consolidations, and Purchases in the Blockchain Industry

Crypto bankruptcies dominated 2022, but investor trust had recovered by the end of 2023. $1.9 billion was invested in cryptocurrency-related enterprises in the last quarter of 2023. Wormhole received the most significant investment of the year, valued at $225 million.

Crypto VC deal count and capital invested between 2016 and 2024. Source: Galaxy.

The company has developed a platform for cross-chain connectivity. In February 2024, $485 million in venture capital funding was allocated to blockchain firms. That was a peak for three months.

According to investors, capital for blockchain applications in the real world and the infrastructure required to put them into practice will receive the most funding in the upcoming year. Bitcoin miners seem to be the primary winners for well-known crypto firms.

The stock of Marathon Digital surged by 590%.
CleanSpark saw a 440% increase.
Riot Platforms saw a 350% increase.

Industry experts expect these companies may buy smaller, less productive mining operations as the halving date draws near. In February 2024, CleanSpark declared it would acquire three Mississippi mining sites for $19.8 million.

In November 2023, Hut 8 Mining and US Bitcoin Corp. combined in an equal merger. With a market capitalization of $1.14 billion, the new Hut 8 Corp.

2. Play to Win and Earn (P2WE)

Play to win and earn is a new term for video games where gamers can earn cryptocurrencies and NFTs through their gaming activities. Thanks to the Play to Win and Earn function, blockchain technology has impacted the gaming industry. P2WE games allow players to earn cryptocurrency while engaging in their preferred games. You can obtain rewards in the form of cryptocurrency combined with an extensive gaming experience when you play P2WE games. 

Many well-known gamers these days have made a living solely from gaming all day long to amuse their audience on Discord, Twitch, and YouTube. Crypto, Web3 has raised the bar and made it possible for everyone to benefit from the growth of the gaming and cryptocurrency industries. Among the P2WE are:

• The Sandbox

• Axie Infinity

• Illuvium

• Gods Unchained

• Alien Worlds

• Silks

• DeFi Kingdom

• Spider Tanks

Expert Comment: Sankrit K., a blockchain gaming expert, described Play-to-Earn (P2E) games as "blockchain-based games that allow players to earn cryptocurrencies, NFTs, and other assets with real-world value via gameplay." He emphasizes blockchain technology in P2WE gaming, which enables players to own digital assets, such as tokens and NFTs, that can be traded or sold on decentralized marketplaces. This allows gamers not only to enjoy the games but also to gain financial rewards. 

3. Implementation of Digital Currencies Issued by Central Bank Digital Currencies (CBDCs)

Payment behaviour is changing. According to the Banque de France, cash is being used less and less with the generalization of bank card payments: just 28% of point-of-sale transactions are made in cash, declining year-on-year. 

Digital currencies are being developed or tested in 132 countries, 98% of the world’s GDP.

Central banks are exploring the potential of innovative technologies to support these societal changes, improve the efficiency of payment systems, and remain competitive. The ambition of creating a Central Bank Digital Currency (CBDC) is not to replace cash but to offer an alternative. 

Presented as a digital token, CBDC  supports solutions to societal issues such as financial inclusion. For example, it makes it possible to democratize access to the economic system for the "unbanked"  access to mobile telephony, whose networks are much more comprehensive than the banking network. The ability to receive and send money is very important for disadvantaged members of society, allowing them to escape poverty. 

Central Bank Digital Currencies (CBDCs) are digital representations of national currencies that are managed and governed by central banks; in contrast to decentralized cryptocurrencies such as Bitcoin, CBDCs function inside the conventional financial system's structure.

Nations like China, the United States, and the European Union are anticipated to develop pilot projects or launch CBDCs by 2024 as governments and central banks continue experimenting. The need for a more reliable, government-backed digital substitute for current crypto assets is fuelling this movement.

By 2030, the Bank of International Settlements says 15 retail CBDCs (those used by consumers and businesses) and 9 wholesale CBDCs (those used by banks) will be operational.

Chris Giancarlo. Source: Talks On Law.

Expert Comment: Chris Giancarlo, a fintech analyst, states that "CBDCs will act as a bridge between the safety and oversight of traditional finance and the fast-paced world of digital currencies." Gen Z, and millennials would probably like this equilibrium because they are digital natives."

 4. Artificial Intelligence

AI has been gaining traction in different fields of the cryptocurrency industry over the past few years, and this trend is anticipated to continue. Currently, the cryptocurrency market has close to 90 AI tokens.

The entire market value of AI tokens was about $2.7 billion as of April 2023. It now exceeds $39 billion. Among the most well-known AI tokens is fetch.ai. Mid-February to mid-March 2024 saw a 329% growth in its token value (FET).

Artificial Intelligence has been making inroads into the Bitcoin space in recent months. Cryptocurrencies that are specifically linked to an AI project are called AI tokens. To mention a few applications, AI tokens may be used in decentralized machine learning systems, web platforms, and blockchain protocols. 

Users can use the tokens to access data or pay for services on the platform, and the platform can use the tokens as incentives to compensate users. The holders of these tokens may also be granted some degree of governance privileges.

Dr. Mark van Rijmenam. Source: TeamBonding.

Expert Comment: Author and computer expert Dr. Mark van Rijmenam is an Author and a computer expert. He claims that blockchain technology and artificial intelligence are a perfect marriage. AI makes it possible to analyze and understand data in previously unthinkable ways, while blockchain gives data transparency and immutability. They provide safe, reliable data that AI can use to form judgments. This significantly benefits supply chain management, healthcare, and finance applications."

5. Decentralized Finance (DeFi)

Decentralized Finance (DeFi) refers to blockchain-based financial systems that remove intermediaries like banks. DeFi 2.0 represents an evolution of this space, offering more scalable, secure, and user-friendly platforms than its predecessor.

The second wave of DeFi is expected to focus on improving user experience and lowering transaction fees, two common pain points in the first wave. Additionally, DeFi 2.0 will introduce new decentralized governance models, allowing users to have more control over the platforms they use. Platforms like Aave and Compound are already setting the stage for these advancements.

Expert Comment: According to Dr. Emma Low, he said "DeFi platforms will keep expanding, empowering younger investors with greater financial autonomy a blockchain researcher."

6. Non-Transferable Coins (NFTs)

NFTs have taken the world by storm, attracting tech enthusiasts, artists, musicians, and collectors. NFTs are unique digital assets representing ownership of art, music, collectables, and even virtual real estate. In 2024, it is expected that NFTs will extend beyond the creative sectors and into areas like property and education.

Real estate companies like the Dubai Land Department and Propy are exploring NFTs to tokenize property documents in order to allow fractional ownership. Universities, like the University of Nicosia, are considering NFTs to certify academic credentials so that they could be fraud-proof. The potential for NFTs to serve as digital property in virtual worlds is also growing. With this growth, users will be able to trade virtual goods and land securely using blockchain technology.

Despite concerns about market volatility, regulations, and environmental impact, many believe NFTs will evolve into critical components of the digital economy. As blockchain technology improves, NFTs can see more practical applications in daily life.

Alex Atallah. Source: Morse.

Expert Comment: Alex Atallah, co-founder of OpenSea, says, "NFTs can transform different sectors by facilitating digital asset ownership."

7. Privacy Coins

With rising concerns about data privacy, privacy coins like Monero and Zcash are gaining popularity. The focus of these cryptocurrencies is on anonymity, offering secure transactions that leave no trace on public blockchains. Unlike regular cryptocurrencies, private coins use advanced encryption to hide transaction details such as the sender, receiver, and amount.

As privacy concerns grow and data breaches make headlines, more users are turning to privacy coins for secure, anonymous transactions. Digital natives are particularly interested in privacy solutions, and the demand for privacy coins is projected to grow by 40% by 2024. However, governments are keeping a close watch, as privacy coins can potentially be misused for illegal activities.

Expert Comment: Cybersecurity expert Jenna Clarke states, "People are especially concerned with privacy, so cryptocurrencies that offer secure, anonymous transactions will likely see increased adoption."

Conclusion

People can take part in exciting developments in the Crypto space anytime.  These trends present opportunities and challenges, from the growth of Play-to-Win and Earn (P2WE) gaming and capital raising in blockchain enterprises to the emergence of Central Bank Digital Currencies (CBDCs), privacy coins, and the integration of blockchain with artificial intelligence. By keeping up with these advancements, young investors and tech enthusiasts can make better decisions and fully capitalize on the rapidly changing cryptocurrency ecosystem.