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IntoTheBlock (ITB), a cryptocurrency market analytics platform expects the approval of the Bitcoin (BTC) ETF spot, the Ethereum (ETH) Dencun upgrade and the launch of the EigenLayer staking product to be catalysts to drive the digital asset sector in 2024.
The launch of spot BTC ETF has already spurred activity in the digital asset sector as BTC hit $47,000 and crypto traders were found to be betting more than $3.25 million on the Securities and Exchange Commission's (SEC) ruling on the product.
Although the SEC's decision is still unknown, a Bitwise survey found that only 39% of financial advisors expect a spot BTC ETF to launch in 2024 while Bloomberg analysts put the likelihood of approval at 90%.
However, it should also be noted that some crypto market participants believe that the approval of the spot BTC ETF could be a sell-the-news event while others are convinced that the price of BTC will reach new annual highs.
Additionally, future ETH Dencun upgrades will be a catalyst affecting crypto in 2024, where the event may be set to take place at the end of the first quarter or the beginning of the second quarter.
The update is expected to improve ETH's layer-2 rollup efficiency through proto-darkshading which introduces temporary storage space for higher transaction processing including reducing transaction costs and attracting more economic activity into the ecosystem.
It is well known that the relaunch of the EigenLayer product is one of the most anticipated events in 2024 as it introduces new applications to the ecosystem as well as leverages the existing liquidity staking protocol.
There are those who believe that staking on EigenLayer will yield higher returns than existing staking rates because the protocol has attracted more than $1 billion in deposits with 70% coming through liquid staking.
