Explore the potential of new cryptos in 2024 to observe and uncover narratives that could boom in this upcoming bull market.
Bitcoin (BTC) is up over 150% in the last 12 months. According to BlackRock, industry-wide anticipation of a spot Bitcoin ETF and trillions of dollars in unscheduled investor capital have contributed to an interesting bull cycle thesis for the crypto market in 2024.
The total value lock (TVL) in decentralized finance (Defi) also grew, rising from around $38 billion at the start of 2023 to over $54 billion at the end of the year. Despite this jump, Defi's TVL is still several notches below its 2021 peak, which stands at over $179 billion, per DefiLlama.
TVL in the Defi sector | Source: DefiLlama
This means that new cryptocurrencies launching in 2024 could benefit from significant liquidity and attention as retail and institutional investors flock to digital asset markets again. The revival of blockchain activity could also indicate that new cryptos are preparing to enter the market, joining the over 9,000 existing virtual currencies.
This article looks at three new cryptocurrencies to keep an eye on and three narratives that may be gaining momentum as the excitement around cryptocurrencies grows. We selected these projects because they have already built communities, raised millions in funding from reputable venture capitalists (VCs), attracted thousands to millions of followers, and most have confirmed their plans to launch tokens in 2024.
LayerZero (ZRO)
Launched in September 2021 by LayerZero Labs, LayerZero is a cross-chain messaging protocol that allows developers to build applications that work across multiple decentralized networks. This promotes improved liquidity and greater utility for users. Several protocols are built on LayerZero's technology, including Stargate Finance and Radiant Capital, which have a combined TVL of over $600 million.
LayerZero has also raised around $250 million in multiple funding rounds and now has a market valuation of $3 billion, fueling community optimism about a token launch and rewards for early adopters. This can often lead to demand for newly launched cryptocurrencies.
Vancouver-based Omni Chain Protocol announced plans to launch its ZRO token in the first half of 2024. An airdrop is included in the rollout strategy as LayerZero is backed by some of the largest crypto-centric investment firms such as Andreessen Horowitz (a16z), Circle Ventures, OKX Ventures and Sequoia.
Additionally, being a pioneer in this space could give LayerZero an edge over other projects and new crypto coins emerging in the cross-chain messaging ecosystem.
LayerZero has always been designed with the ability to have a native token within the protocol, as evidenced by the immutable code launched on day one. We've heard the community discussion over the past few months and the lack of clear communication surrounding it. We will now specify in…
— LayerZero Labs (@LayerZero_Labs) December 7, 2023
zkSync era
zkSync is an Ethereum-based scaling solution powered by zero-knowledge technology. Blockchain infrastructure, commonly called rollups, executes transactions outside of the Ethereum (ETH) mainnet to reduce network congestion and offer cheaper gas fees.
This special Layer 2 network was launched in February 2023 by Matter Labs, which raised $458 million. $200 million of this donation is earmarked for the launch of zkSync. Although the project has not officially announced when its token might be listed, a pricing page on CoinMarketCap increased speculation of an imminent launch.
zkSync’s over $500 million TVL and funding make the L2 network one of the most important new cryptocurrencies that could hit the market in 2024. The protocol also has a 3.3% market share among L2s, trailing only Coinbase's Base, Optimism and Arbitrum, per l2beat.
StarkNet (STRK)
Another new digital currency to watch out for is StarkNet's STRK coin, which already has a token contract implemented on the Ethereum blockchain. Israel-based blockchain company StarkWare Industries launched the Layer 2 network in February 2022 and has since raised $36.85 million in TVL.
Starknet TVL | Source: DefiLlama
In December, StarkNet announced a major token distribution program and incentives to encourage adoption. This confirmed the network's intention to launch a native token, an event expected in April 2024.
Additionally, StarkNet's plan to cash out over 1.8 million STRK coins could spur interest in the token and potentially give it a spot as a new listed coin on Tier 1 exchanges.
Hot stories for New cryptos to watch
While the above three tokens fall into the L2 category and typically attract hundreds of millions in trading volume following the launch of new cryptocurrencies, new crypto coins are likely to emerge in a basket of sectors, giving buyers and investors the opportunity to choose between them.
Recognizing narratives during market cycles is a key skill required to optimize capital and protect profits. Here are three narratives you should watch to find new crypto projects.
Real World Assets (RWAs)
RWAs are created by adding digital versions of traditional financial instruments such as real estate to a blockchain network. The process is called tokenization and is considered one of the primary use cases of crypto technology.
This industry has also grown in recent months, reaching a market capitalization of over $2 billion, according to Coingecko.
Crypto AI
The intersection of cryptocurrencies and artificial intelligence has become a $9 billion digital asset ecosystem that is set to see further growth due to increasing discussion of AI and blockchain assets.
Best AI Coins | Source: Coingecko
The five largest crypto AI tokens have each gained over 500% in 2023, promoting this category as a prime place to find new cryptos to watch.
Play
The global blockchain gaming scene is on an upward trend, with the market size expected to reach $614 billion by 2030. Web3 users also believe that 20% of games in general would adopt blockchain in some form, a move that could bring billions of dollars in investment into GameFi.
Coingecko put the total capitalization of the GameFi market at $18 billion, leaving room for exponential growth and room for new cryptocurrencies should the blockchain gaming industry live up to expectations.
Helpful tools
Because the digital asset landscape is inherently fast-moving, investors often find it difficult to find new crypto coins early or figure out which new crypto has the most potential. However, there are dedicated platforms where users can search for tokens and find coin data and metrics.
These tools include Coingecko, CoinMarketCap, Dextools, Dexscreener, DefiLlama, Dune Analytics, Etherscan and TradingView. Most of these platforms are free to use, while others offer paid versions with additional features to help users find new cryptos to watch and figure out which new cryptos could explode in 2024.
Diploma
The opportunities are likely to be numerous as bullish sentiment floods crypto markets and retail investors re-inject capital into risky assets. A potential spot Bitcoin ETF also solidifies institutional demand and serves as validation, said Ark Invest's Cathie Wood.
In this cycle, investors must manage their risk and remain vigilant to avoid scams. Also, don't forget to DYOR (do your own research) when choosing new cryptos to keep an eye on.
Disclosure: This article does not constitute investment advice. The content and materials presented on this site are for educational purposes only.
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