Spartan 2024 Outlook Forecast: Optimistic about Bitcoin Ecosystem, DePIN and 9 Other Crypto Tracks

Written by: The Spartan Group

Compiled by: Deep Tide TechFlow

2023 has been a year spent in a bear market for cryptocurrencies. While this year has seen much turbulence, it has also provided space for incredible new technological innovations.

Below are some things that the partners of the Spartan investment, consulting, and labs team are excited about for the upcoming cryptocurrency landscape in 2024. This article will delve into the nine most exciting trends of the year, from Web3 gaming to the Bitcoin ecosystem. These trends not only herald significant changes in the Web3 space but also reveal a more open, interconnected, and innovative digital future.

AAA Web3 Games

Kelvin Koh, Co-founder and Partner, Chief Information Officer of Spartan Capital

I am excited about the next generation of AAA-quality Web3 games, some of which will launch in 2024. I believe these games will bring millions of new Web3 users and demonstrate why Web3 gaming is an evolution of existing Web2 games.

Bitcoin-based Development, Consumer Applications, and the Asian Market

Melody He, Co-founder and Partner, Co-Head of Spartan Consulting

For 2024, I am particularly excited about four things:

• Unleashing the power of Bitcoin blockchain based on Bitcoin assets

• Consumer applications marking the next generation of NFT development

• The Asian market becoming a hub for cryptocurrency - from crypto trading to enterprise adoption

• Capital flowing to regulated exchanges and local exchanges, with liquidity becoming more decentralized, but this will also force projects to invest in local partners and exchanges rather than just listing on overseas exchanges without leveraging their tokens for local adoption.

M&A-Driven Consolidation

Casper B. Johansen, Co-founder and Partner, Co-Head of Spartan Consulting

I expect 2024 to be a year of growth and consolidation in the Web3 industry. In particular, I believe we will see consolidation among centralized exchanges. This consolidation will primarily take three forms:

1. Domestic consolidation among competitors in the same market

2. Regional consolidation between exchanges operating in adjacent markets

3. Cross-continental consolidation through large global players entering strategic markets.

We will also see a sharp increase in M&A activity in other areas of Web3, including custody, data and analytics, staking, payments, etc. After the wave of M&A-driven consolidation native to Web3, we will see a second wave dominated by non-Web3 native companies, as well as some larger Web3 platforms going public.

Major Applications, Zero-Knowledge Proofs, and Modular Blockchains

Leeor Groen, Managing Director of Spartan Group

I am excited that the industry will validate the infrastructure we have built over the past few years through the adoption of major applications. In Web3, we will begin to measure the success of this in different ways; beyond individual assets, we will start to recognize the value of computational ownership. Privacy and security will be key drivers, and we will see users begin to realize the value of zero-knowledge proofs and modular blockchains, often without even knowing that they rely on these technologies in various applications from digital identity to gaming.

On-Chain Agents, Virtual Goods, and Aesthetic Crypto Brands

Adrian Lai, Chief Creative Officer (Head of Studio) at Spartan Labs

In 2023, concepts such as intent, networked playable characters, crypto AI agents, NFT applications, and modular account abstractions emerged. In 2024, I expect these decentralized crypto concepts to converge into a powerful economy centered around autonomous on-chain agents.

Secondly, Apple’s Vision Pro is about to launch. I am excited about the corresponding wave of virtual goods and experiences that the new spatial format will bring.

Finally, I look forward to seeing more aesthetically-oriented crypto-native brands led by innovators such as Family, Blackbird, Bebop, Seed Club, Zora, FWB, and others.

DePIN and the Bitcoin Ecosystem

Cody Poh, Investment Associate at Spartan Group

I am excited about the development of DePIN; projects that leverage crypto economics to reduce structural costs will be strong competitors to existing Web2 businesses. Additionally, with the upcoming Layer 2 upgrades to Bitcoin infrastructure, the BTC ecosystem is becoming more practical and usable, coupled with newly created asset classes like BRC-20 offering high speculative value, the ecosystem is poised for strong growth.

The Intersection of AI and Blockchain

Audrey Taylor-Akwenye, Chief Technology Officer at Spartan Labs

In 2024, what excites me most is the intersection of AI and blockchain. We have research and new use cases around zero-knowledge and machine learning (ZKML). We have games that allow you to train AI agents using ERC6551. I believe that in the coming year, we will see more AI being used to enhance the user experience and efficiency of Web3, as well as more blockchain technologies being used as guardrails and transparency layers for AI.

Web3 Consumers, Social, and Gaming Takeoff

Dana Gan, Consulting Associate at Spartan Group

Looking ahead to 2024, I am excited about the following aspects of the crypto space:

• We may see a relatively new wave of momentum and traction for L1/2 chains. I hope to see more developer activity, TVL, the emergence of on-chain "killer apps," and community building. To prove themselves, chains like Sui, Sei, Aptos, Base, and Scroll have a lot of work to do in 2024.

• Consumer applications in the cryptocurrency space aimed at retail are expected to increase: the success of friend.tech, coupled with potential airdrops that may occur in the coming year, has already sparked a surge of imitation projects. This is just the beginning. This trend marks a significant shift in the industry's focus toward consumer and social applications. I am excited to test more products that feature better UI/UX, improved incentive flywheels and token utility, as well as more sustainable business models.

• I foresee more advanced developments in the Web3 gaming and metaverse industry over the next 1-2 years: after years of development, many AAA and MMORPG Web3 games are set to launch. With advancements in hardware (such as Apple’s Vision Pro) and software (metaverse engine companies), I believe there is considerable growth potential in the gaming and metaverse space, and I look forward to trying more of these games in 2024.

Tokenization of RWA and the Bitcoin Network

Yan Ma, Associate at Spartan Group

• The tokenization of RWA expands the categories and security possibilities of the Bitcoin network.

• The Bitcoin network offers scalability and interoperability through L2 solutions, unlocking over $850 billion of non-productive BTC capital and paving the way for institutional adoption.

• DeSci as a powerful use case for blockchain will gain more attention—using Web3 technology to establish secure, permanent records of scientific contributions, enabling fair credit distribution, simplifying transactions, allowing global resource sharing, and overcoming economic barriers.

The views expressed here are solely those of individual employees of the Spartan Group and do not necessarily reflect the views of the Spartan Group or its affiliates.