Builders, the bear market is almost over
We’ve spent all of 2023 doubling down on the real crypto projects of substance — but 2024 is when they will really take off
After 2022’s market crash and the implosion of several notable blockchain companies, this has been a year of doubling down on projects of substance. Web3 has taken 2023 as its year of reflection and constitution.
That said, I firmly believe that 2024 will see builders’ hard work and grit pay off — next year, the public will see the fruits of our bear market labor.
Stablecoin payments will take off
Due to their stability and ease of use, stablecoins are becoming increasingly popular for payments, remittances and investments in DeFi applications. Stablecoins had a relentless year in 2022, settling as much as $11 trillion on-chain, almost 10 times PayPal’s and equal to Visa’s volumes.
PayPal launched its own stablecoin in 2023, the first US financial institution to do so. Traditional payments processors like Visa and Mastercard are also recognizing the opportunity behind stablecoins by experimenting with USDC, the second-largest stablecoin in the market, to explore its use to make cross-border payments faster and cheaper.
As there is an increasing demand from retail to spend stablecoins through online transactions and peoples’ day-to-day lives, Visa and Mastercard will be capitalizing on the opportunity in 2024. However, with the aforementioned increases in stablecoin usage, I also expect 2024 stablecoin numbers to equal Visa and Mastercard’s total volumes.
A breakout Web3 game will see a nine-digit user base globally
Although the Web3 gaming industry is still in its early stages of development, it will allow players to own and trade their in-game assets as real property, offering the immersive experiences that players crave.
Several Web3 games have been around for several years and have built large and loyal fanbases, such as Axie Infinity and Splinterlands, while other newer games are quickly gaining popularity. At its prime in the summer of 2022, Axie Infinity saw 2.7 million active users on the platform. Eventually, play-to-earn dynamics lost popularity — but we’re now anticipating the next wave of games to launch with new features.
Read more from our opinion section: Play-to-earn as we know it is dead: Long live SocialFi
Web3 games must still have the AAA-quality graphics and gameplay that are table stakes for Web2 games. Progress on this front has been exponential, and major influencers are taking note . While a nine-figure fanbase for a new game within a year might seem like a tall order, because of the global nature of online gaming, when there is a hit, its growth is exponential.
Bitcoin’s market capitalization will grow 50 percent
Bitcoin is poised for a banner year in 2024. As of writing, more than half a dozen US financial institutions have applied for a spot bitcoin exchange traded fund (ETF). Bitcoin futures ETFs are already in operation, as are leveraged bitcoin ETFs, and Grayscale’s recent court victory with the goal to convert its bitcoin fund into an ETF is more reason for optimism. Spot bitcoin ETFs would make it easier for retail investors to gain exposure to bitcoin, make bitcoin more attractive for institutional investors and add legitimacy to bitcoin as an asset class.
What’s more, the next bitcoin halving is expected to occur in April 2024, when the block reward for mining bitcoin is reduced by half. Such events are designed to slow the inflation of bitcoin, and as a result, many analysts expect the halving to significantly grow market capitalization. In the previous cycle in 2020, we saw bitcoin ( BTC ) increase almost 100% in market cap just six months after halving.
NFTs will prove themselves to be than just collectibles
NFTs provide a way for artists to establish ownership of their digital creations, create new revenue streams and engage communities around artists’ work. That said, there are so many more uses for NFTs than art.
Read more from our opinion section: Don’t use your NFT for that
In 2023, the groundwork was laid for NFTs’ next major utility to become apparent: loyalty programs and customer engagement strategies. In Asia, which has become a leader in Web3 adoption, NFTs have been integrated into OK Cashbag’s loyalty program , an app used by roughly half of the South Korean population. And in Japan, similar efforts are underway to add millions of shoppers into Web3 loyalty programs. It is only a matter of time before enterprises around the world understand that the same community building and revenue streams created for artists through NFTs can be applied to the world of ecommerce.
DeFi exploits will become rare
In the first half of 2023, there were almost 400 major DeFi exploits , culminating in roughly half a billion dollars stolen. So, DeFi exploits becoming rare next year might seem like quite a tall order.
But the key difference between the first half of 2023 and the second was the spotlight shone on the incredible capabilities of AI, such as Large Language Models (LLMs). There is good reason to be incredibly enthusiastic about LLMs’ ability to allow developers to code smart contracts through human language. The human-made errors of past years won’t be able to hide in code anymore, and will be identified immediately.
Web3 has grown in waves, with periods of progress, and then needed retrenchment. 2024 looks poised to be yet another breakout year in leveraging blockchain’s unique attributes to make the online world more transparent, equitable and secure.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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Delta Airlines lowers its annual profit forecast due to an expected increase in fuel costs to $6 billion. The CEO stated that ticket prices have risen by about 20% this year, with limited passenger resistance. Analysts warn that maintaining high ticket prices in 2027 is critical for improving profitability. The article includes comments from the earnings call and analyst remarks. Rajesh Kumar Singh/Shivansh Tiwary, Reuters Chicago, October 9 - Delta Airlines (DAL.N) said on Friday that, despite strong travel demand and rising ticket prices, soaring fuel costs have forced it to cut its 2026 profit expectations by nearly a quarter. So, the airline industry may need to further limit flight growth next year to protect profitability. This warning highlights the increasingly tough challenges faced by U.S. airlines. While strong demand and restricted seat growth have allowed airlines to significantly raise ticket prices and offset higher fuel costs, aggressively increasing flights to capture more demand may intensify competition, making it harder to maintain high fares and protect profits. Based in Atlanta, Delta now expects its annual fuel expenditure to increase by about $6 billion compared to last year—about $2 billion higher than its July forecast—due to the Iran war (link) causing global jet fuel prices to spike. Airlines worldwide are preparing for a prolonged fuel shock. Michael O’Leary, CEO of Ryanair Group RYA.I, said Thursday that high jet fuel prices could persist for another 12-18 months (link), adding more pressure on airlines to raise fares and control costs. https://www.reuters.com/graphics/AUTOMATED-20261008/A4A-JET-FUEL-DAILY-1Y/xmpjwjnmbvr/chart.png “In a high-cost environment, you can’t simply grow your way out,” Delta CEO Ed Bastian said on the earnings call. He noted that the industry has already taken steps to restrict capacity, but more measures will be needed next year to improve profitability. Bastian said Delta raised ticket prices about 20% this year, and passenger resistance has been limited. He is confident that even if fuel costs eventually drop, the high fares can still be maintained. Delta lowered its adjusted annual earnings per share forecast from the July prediction of $6.50-$7.50 to $5.10-$5.60. According to LSEG data, the midpoint of the new range is below analysts’ average expectation of $5.46. Third-quarter adjusted earnings per share were $1.72, four cents below analysts’ average forecast. In midday trading, shares of Delta dropped 1.7%, United Airlines UAL.O fell 1.4%, and both American Airlines AAL.O and Southwest Airlines LUV.N were down about 1%. Delta partly shields itself from rising fuel costs by owning a refinery outside Philadelphia (link), which is expected to generate over $700 million in profits this year. Even with this buffer, the airline expects its fourth-quarter fuel price to rise from $3.61 per gallon in Q3 to $4.25 per gallon. Delta forecasts adjusted fourth-quarter earnings per share to be between $1.15-$1.65, with the $1.40 midpoint roughly matching analysts’ average expectation of $1.39. Fare increases Government data shows that in the first eight months of 2026, U.S. airlines spent $42.9 billion on fuel, an increase of $13.2 billion compared to the same period last year despite slightly reduced consumption. According to the U.S. Bureau of Labor Statistics, strong demand and limited seat growth pushed average U.S. airline ticket prices up by about 25% year-on-year between April and August. https://www.reuters.com/graphics/USA-AIRLINES/FUEL/lbpgdnbzwvq/chart.png Analysts at Melius Research said that despite surging fuel costs, Delta’s ability to raise fares helps keep second-half profits roughly stable. Still, they warn that the company’s profit margin has struggled to improve over the years. “It is critical for margin improvement to maintain or raise fares in 2027,” they wrote in their research report. With industry capacity growth expected to accelerate in Q4, this challenge will likely become even tougher. Deutsche Bank analysts expect the proportion of fuel costs recouped through revenue measures to fall in Q4 and predict full recovery won’t happen until early 2027. Bastian noted that low industry returns are another reason for limiting capacity growth. He said Delta will be cautious with its 2027 capacity plan until the fuel price outlook becomes clearer. He added that international routes may account for a larger share of Delta’s capacity expansion compared to domestic routes. Currently, Delta says its premium cabins and corporate travel business remain strong, and its economy cabin business is gradually improving. With Q4 ticket bookings already exceeding 60%, Delta expects revenue to increase about 20% year-on-year, despite limited capacity growth. Executives said early booking trends for Q1 2027 are also encouraging. (For the convenience of non-native English speakers, Reuters automatically translates its reports into several
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