Virtual currencies

Predicting Web3 Trends for 2024: What Investors, Developers, and Enthusiasts Need to Know

A wave of disruptive advancements is reshaping the landscape, heralding a transformative era for digital assets.
With the advent of advanced membership protocols and critical upgrades to Ethereum's infrastructure, we are witnessing a paradigm shift.
These innovations are revolutionizing the user experience and redefining the role and capabilities of Web3 wallets within this dynamic ecosystem.
As we head into the hot trends of 2024, the Web3 Bitget wallet research team has investigated how these changes are not only improving user experiences, but are also expanding the reach and potential of blockchain technology, setting the stage for a exciting year in Web3.
This is the analysis of Alvin Kan, COO of Bitget Wallet regarding the innovations that we may see in 2024.
Bitcoin and the BRC20 tokens While the Bitcoin ecosystem is experiencing a surge of enthusiasm around the BRC20, ARC20 and SRC20 tokens, as well as significant infrastructure improvements, we are seeing impressive growth in membership protocols across various blockchains, including Solana, Avalanche, and Aptos.
This trend is marked by the emergence of IDO membership platforms and the popularity of mystery boxes and membership lotteries, which are significantly expanding the user base, transaction excitement and gas consumption in the membership market.
To accommodate these changes, Web3 wallets must evolve, offering more secure and easier-to-use tools for membership users.
They should aim for a seamless user experience, while protecting user assets, for example by preventing UTXOs reserved for subscriptions from being accidentally spent as regular BTC.
This approach will ensure users have a smooth and stress-free experience.
Regarding cross-chain and omni-chain swaps The first half of the year has seen notable developments in cross-chain and omni-chain swaps, with the upcoming launch of LayerZero's token and the continued evolution of Wormhole.
This progression is setting the stage for a significant increase in DeFi user base and awareness.
The concept of omni-chain swaps is expected to gain tremendous traction in 2024, becoming essential for many users.
Signs of this trend are already evident in the Q4 daily active user (DAU) growth of platforms like SushiSwap and WooFi.
To remain relevant, Web3 wallets may need to integrate these omni-chain exchange protocols and consider developing their own omni-chain exchange capabilities to meet growing user demand.
3A and Omni-Chain Games In the gaming industry, Triple-A and omni-chain games have the potential to revive GameFi summer.
These games, which serve as important traffic gateways, are evolving into highly competitive battlegrounds for Web3 wallets.
Wallets that form strong partnerships with high-DAU GameFi platforms and ensure smooth, lag-free interactions are well positioned to gain substantial advantages in this competitive space.
DeFi Reward Protocols: As the blockchain industry matures and users become more familiar with the concept of decentralization, a shift from centralized exchanges to non-custodial wallets is expected.
Users who manage their assets in their own wallets are increasingly looking for solid rewards.
By recommending secure DeFi pools with relatively high APYs and tailored to the user's wallet, Web3 wallets could significantly increase user loyalty.
As the industry expands, these personalized rewards solutions will be key to attracting and maintaining a dedicated user base.
These trends reflect a dynamic and rapidly evolving Web3 landscape, where user experience, security and innovative reward solutions are critical to capturing and maintaining an engaged and aware user base.
Ethereum Cancun Upgrade In a recent Ethereum Core Developers Consensus Call (ACDE), developers set tentative dates for the Cancun/Deneb upgrade to go live across all three of Ethereum's public testnets.
The Goerli, Sepolia, and Holesky testnets are scheduled to fork on January 17, January 31, and February 7, respectively, with the update expected to be completed in Q1 2024.
This major update incorporates nine EIP proposals, of which the EIP-4844 is the centerpiece.
Its main goal is to enhance the staking technology introduced in the Shanghai Upgrade and improve the staking infrastructure.
The goal is to reduce gas fees and increase the scalability of the blockchain, thus encouraging greater transaction activity on Layer 2 (L2).
This is beneficial for L2, benefiting dApps on L2, and strengthens Ethereum's competitiveness.
Direct beneficiaries within the ETH ecosystem include various L2, Liquid Staking Derivatives (LSD), LSDFi, and DeFi solutions, which will likely see increased transaction volume and value capture.
Furthermore, it supports the widespread adoption of applications in gaming, social and other sectors of the ecosystem.
For Web3 wallets like Bitget, optimization at the infrastructure level will also benefit the application layer.
AA wallets, in particular, should directly benefit from the Cancun update.
The update promises to significantly reduce gas expenses for creating and interacting with AA wallets, improve interaction confirmation speed (a major pain point for AA wallets), and improve the overall user experience.
If Web3 wallets can leverage this opportunity to effectively improve user experience, they could be well positioned to welcome a new wave of user traffic growth.

Author: Hermes A.I.

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