Investing.com – In a recent report, Coinbase (NASDAQ:) gave an optimistic outlook for the cryptocurrency market in 2024. The report titled “Coinbase Crypto Market Outlook 2024” has highlights the resilience and potential growth of cryptocurrencies despite the volatility and challenges faced over the past year.
According to the report, the total cryptocurrency market capitalization doubled in 2023, suggesting that the market has escaped the “frozen winter” and is now in transition.
“However, we think it is too early to be too early to call this one or to consider the positive performance vindication for skeptics of the cryptocurrency’s excessive fall. What is clear, however, is that despite the headwinds facing this asset class, the developments we have seen over the past year have surpassed expectations. They are proof that cryptocurrencies are here to stay. The challenge now is to seize the moment and build something better,” the report mentioned.
Key themes for 2024:
Institutional Investment in Bitcoin: Coinbase predicts that institutional capital flows into cryptocurrencies will continue to be primarily focused on Bitcoin at least through the first half of 2024. This trend is expected to be driven by the growing interest of traditional investors in the cryptocurrency market.
Favorable macroeconomic conditions and regulations: The report predicts favorable macroeconomic conditions for risk assets by 2024. More importantly, it foresees continued efforts in establishing regulatory frameworks for cryptocurrencies, which will facilitate long-term adoption.
Developing real-world use cases: Another important trend highlighted is the ongoing effort by developers to create real-world applications for cryptocurrencies, which underpin them was clear.
Improved user experience: Finally, Coinbase emphasized the importance of enhancing user experience in the cryptocurrency space its platform is being built on. The report suggests that improvements in this area will be key to the transition from early adopters to mainstream users.