Experts Weigh in on Web3 Growth in 2024 – How Is Your Firm Getting Prepared? 

Photo by Carrie Johnson // Pexels

2023 has been a challenging year for the Web3 sector. Tight economic conditions, relatively flat markets, and regulatory turbulence have all contributed to an overabundance of investor caution. However, as the year draws to a close, there are many reasons to feel optimistic about 2024 – and many experts certainly agree. 

Over the last few weeks, industry leaders from Van Eck and Andreessen Horowitz have released their predictions for 2024, and if they’re correct, next year will once again see exponential growth and development in the digital asset sector. 

For our last blog post of 2023, we’ve analyzed some expert predictions for the upcoming year and what they could mean for Web3 operators who want to get ahead of the curve. 

Further Growth And Disruption in Crypto Exchange Segment

2023 has been a tumultuous year for the exchange sector – most notably, Binance, which recently settled a $4.3 billion penalty with the Department of Justice. Van Eck predicts that the firm will lose its coveted position of being the #1 trading venue, creating opportunities for rivals to capture market share. 

However, the decline of the market leader is likely to make the already-crowded exchange market even more competitive, particularly if the predictions of a 2024 bull market are accurate. Therefore, firms will need to make sure they have a robust brand that can communicate their unique value offering, accompanied by a communications strategy that will ensure visibility and brand awareness. 

Van Eck also forecasts that an improved on-chain trading experience and more user-friendly wallets will propel the DEX market share of spot trading to new highs, creating further opportunities for up-and-coming decentralized trading platforms. For this segment, building trust and credibility, particularly among newcomers to the sector, will be key to growth. Operators should be prepared to showcase their credentials in the areas of security, transparency, compliance, and collaboration. 

A New Surge in GameFi

Blockchain-based gaming, including play-to-earn (aka GameFi), was one of the biggest growth segments of the last bull market, driven by early leaders like Axie Infinity, The Sandbox, and Splinterlands. However, could 2024 be the year that Web3 gaming goes mainstream? 

One a16z expert goes as far as to state that the success of emerging technologies, including Web3 and VR, will depend on the extent to which their innovators embrace gaming and suggests that the next major wave of adoption for Web3 games will come from “fun mainstream games that introduce web3 as a way for gamers to engage with the virtual items they buy.” Van Eck predicts that at least one blockchain game title will pass the one million daily active users mark. 

According to Web3 gaming experts, developers need to decide if their game UX wants to focus on the “play” part or the “earn” part. While the latter is likely to appeal to incentive-hungry crypto users, focusing on the former offers an opportunity to tap into the vast global audience of gamers with a Web3 twist. However, the go-to-market approach will need to ensure a clear and compelling message for the Web3 elements that avoids confusing technical jargon and successfully resonates with users who aren’t familiar with (and may be mistrustful of) Web3 technologies. 

Ongoing Infrastructural Development

The last few years have seen a surge in the development of Ethereum Layer 2 platforms, which Van Eck predicts will soon become a consolidation. Therefore, we can expect hot competition among established players as they seek to lure in the best and brightest developer talent and successful dApp projects. Hackathons, pitch contests, and grant funds can help make a platform more visible and attractive to developers, but they need to be set up alongside an orchestrated communication campaign to draw in participants and extract the maximum benefit from the investment. 

A key 2023 trend that’s expected to continue into 2024 is the expansion of the decentralized physical infrastructure (DePIN) segment. DePIN is where computing resources are sourced from decentralized networks of participants who are incentivized to contribute their resources via token rewards. Examples include Storj (file storage), Akash (computing power), and Foam (WiFi connectivity). 

In many cases, these users may be simply an average Joe with a spare laptop not in use for part of the day – and the success of a DePIN provider lies in reaching many more average Joes who don’t yet know they can generate passive income from idle hardware. Therefore, once again, strategic brand communication to reach a critical mass of users with messages that land will be key to successful growth. 

If you’re planning to scale up your Web3 operations in 2024, then Energent can help with your PR and communications activities, ensuring that your brand gets seen. We’ve represented countless clients, helping to boost their visibility and get their brand seen where it matters. Book your free consultation with one of our PR specialists today.

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