According to the report, the total cryptocurrency market capitalization doubled in 2023, suggesting that it has already exited its “winter” and is now in the midst of a transition.

“Still, we think it’d be premature to put labels on this or see the positive performance as vindication against the cynics who reveled in crypto’s greatly exaggerated demise. What’s clear, however, is that despite the hurdles directed towards the asset class, the developments we witnessed over the past year have defied expectations. They are evidence that crypto is here to stay. The challenge now is to seize the moment and build something better,” mentioned in the report.

Key themes for 2024:

• Institutional investment in Bitcoin: Coinbase predicts that institutional flows into cryptocurrency will continue to focus primarily on Bitcoin at least through the first half of 2024. This trend is expected to be driven by traditional investors’ growing interest in the crypto market.
• Favorable macro tailwinds and regulation: The report anticipates favorable macroeconomic conditions for risk assets in 2024. More importantly, it foresees ongoing efforts in establishing regulatory frameworks for cryptocurrencies, which will facilitate long-term adoption.
• Development of real-world use cases: Another significant trend highlighted is the continuous effort by developers to create real-world applications for cryptocurrencies, the foundations of which are already evident.
• Improving user experience: Finally, Coinbase underscores the importance of enhancing the user experience in the crypto space, the groundwork of which is being built. The report suggests that improvements in this area will be key to transitioning from early adopters to mainstream users.