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Bankless 2024 Prediction: EigenLayer TVL surpasses $10 billion, and Ethereum burns 1 million ETH.

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Bankless' Five Predictions for Cryptocurrencies in 2024

Original Title: "David's 2024 Predictions"

Original Author: David Hoffman

Translated by: Luccy, BlockBeats

Editor's Note:

David Hoffman, co-owner of Bankless, has made his five predictions for the cryptocurrency market in the coming year, including the continued rise of EigenLayer to a TVL breakthrough of $10 billion; Ethereum will burn 1 million ETH; airdrops will cover the entire ecosystem, and tokens worth $5 billion will be distributed to early participants in cryptocurrency protocols; focus on the progress of Arbitrum, Optimism, and other EVM chains in virtual machine optimization; Solana's rapid attraction of too many users will cause a crash. BlockBeats has translated the original article as follows:

The first week of 2024 has begun, and you will see many predictions about the cryptocurrency trend this year. Of course, most of these predictions will ultimately be far off, but in the frenzy of a bull market, betting is just too much fun, and I can't help but share my own views.

Therefore, these are my five predictions for the cryptocurrency industry in 2024.

EigenLayer's TVL breaks $10 billion

My first prediction is that the popularity of EigenLayer will continue to rise throughout 2024. I have been emphasizing this point repeatedly, and as a consultant for the project (as disclosed by Bankless), you may be skeptical of my enthusiasm, but you should not think that way.

EigenLayer's mainnet is scheduled to launch in Q2 or Q3 of 2024, with billions of dollars worth of ETH deposited into its staking contract. Following this, AVS services will begin to roll out and generate additional yield for ETH. Initially, the extra yield may be negligible, but it will gradually increase over the first 24 months of EigenLayer. A sub-prediction is that if EigenLayer conducts a token airdrop in 2024, it will be the largest airdrop of funds to users in history.

100 Million ETH Burned

Since the merger, Ethereum has burned 335,000 ETH in 461 days.

In 2024, Ethereum will burn 1 million ETH. In the frenzy of the bull market, we simply didn't see the full effect of PoS + EIP1559. The furnace will become very hot.

2024年空投金额超过50亿美元

Translation:

The airdrop amount will exceed 5 billion US dollars in 2024.

This is the season of airdrops. In 2024, I believe that tokens worth $5 billion will be distributed to early adopters of cryptocurrency protocols.

The airdrop will cover all ecosystems; Solana, Ethereum, Ethereum Layer 2 networks, and newer alternative chains will attempt to attract new users through airdrops and incentives.

ETH L2 Narrative Shift Optimization of VM and Parallel EVM

In 2024, many L1s optimized for VM, including Monad and Sei, will enter the stage. Eclipse plans to introduce SVM to Ethereum mainnet in 2024.

Around the L2 VM, the meta-narrative will shift from EVM to a VM with more execution optimizations. The Ethereum community will request Monad to become L2, but Monad will reject this request.

The important things to pay attention to are: the progress of Arbitrum, Optimism, and other EVM chains in terms of virtual machine optimization, and how far they are from leaving the EVM.

Solana Outage

The scalability of Solana is not important or fast. If it attracts too many users too quickly, flaws will be found in its armor.

This may not be catastrophic, but it will be a wake-up call (hopefully). This will also be a demonstration of Solana's success, not its technical shortcomings.