Halvening 2024: Analyzing Opportunities From The Past Halving

Nagaya Technologies
6 min readJun 1, 2024

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Another 4 years have passed in our roller-coaster ride within the DeFI Space and we are back to another halvening event in 2024. Bitcoin Halving represents a key propelling factor within the space throughout history so much so that its effects echoes to other DeFI projects. With the Halvening 2024 beyond us, let’s take a look at the history behind this momentous event and unearth the opportunities we discover from the past events.

The Journey to the Fifth Halvening

Bitcoin is a worldwide phenomenon as of 2024 that has not only broken its all time high very recently in March but also enabled adoption across the financial ecosystem. Despite its recent correction, Bitcoin has shown remarkable progress despite its early age of 16 years and continues to defy the odds as 2024 rolls on. But it wasn’t always this way when we rolled back the year to 2008 when the economy was falling apart and Bitcoin was in relative obscurity.

Source: https://www.linkedin.com/pulse/understanding-bitcoin-halving-beginners-guide-nirmal-vyas-6adoc

The 2008 Financial Crash not only wiped out millions from the market but it left a major scar in these people’s lives. The Pension and Retirement Fund was heavily evaporated due to greed and put a scope on how centralized our financial system was. Bitcoin aims to be the next best alternative to this system through its decentralized blockchain technology and also rival the fiat currencies due to its limited supply of 21 Million.

Bitcoin’s blockchain technology enabled it to conduct global transactions in a matter of minutes without the need for intermediaries and remained a special factor in its competition with TradFI. The transactions within the Bitcoin Network are then verified by Miners who earned rewards for their efforts. This is where Bitcoin’s second special feature “Halving” shines in establishing its dominance over the years.

What is “Halving” you may ask? Halving is a system that automatically halves the reward by miners and occurs roughly in the span of 4 years or every 210,000 Blocks completed within the Bitcoin Network. Halving is an integral part of the Bitcoin Network to maintain the draw in the motivation of the miner as they continue to get rewarded while still maintaining the rarity on the supply of Bitcoin circulating. In a nutshell the halving system is enabled so there will still be enough Bitcoin to be mined by the year 2140.

Halving is a system that is obviously well adopted in other Blockchain Network with a Proof Of Work consensus mechanism for example Cardano but Bitcoin Halving remains the most celebrated one within the DeFI Space due to the large scale impact it usually brings. Bitcoin Halving also historically has the potential to define new trends that may arise for the years to come and uplifting the potential of the DeFI Space.

The First Bitcoin Halving occurred on 28th November 2012 exactly 4 years after its inception in 2008 and the reward was halved from 50 BTC to 25 BTC. Then Bitcoin was still relatively unknown within the community trading at $12 and enthusiasts were unsure regarding the reduced rewards. It then turned out to be a catalyst for the first Major Bull Run reaching $229 in April 2013 and then to an all time high of $1,132 by November.

It was a major achievement from a digital currency that was traded for Pizzas a few years earlier and set up many major pieces within the DeFI Space. Due to the first Bitcoin Halving, many aspiring projects such as Ethereum and Tether came around while the first major Centralized Exchange such as Mt. Gox and Coinbase were also established. The First Bitcoin Halving remains to be an important event in Bitcoin’s dominance today.

A few years later the Next Bitcoin Halving occurred on 9th July 2016 as reward was again halved from 25 BTC to 12.5 BTC. Due to the fast growing pace of the DeFI World, the second halving came with tough competition from other projects as the rivalries were heating up on who can dethrone Bitcoin’s dominance. It also came with its opportunity as enthusiasm and adoption from the first halving continue to widespread globally.

Bitcoin steadily grew over the couple of months after the second halving before picking up momentum and reaching an all time high in May 2017. It would go on to a peak of $19,034 by November and became a catalyst for major powerhouses such as Finance and FTX to be introduced within the DeFI Space. It will also be instrumental for new innovations such as AAVE with its P2P Loan Platform and the Stablecoin space.

The third Bitcoin Halving was obviously the most strange one occurred on 11th May 2020 as block rewards halved again from 12.5 BTC to 6.25 BTC and in the midst of the pandemic. Despite the economic standstill and lock-down in our daily lives, development within the DeFI Space continues to unfold in a rapid space as Bitcoin’s price rose quickly from $8,500 in May to over $40,000 in January of 2021 before peaking above $67,000 in November.

While Bitcoin claimed the “Best Performing Asset ‘’ title after the third halving, the growth was exponential in terms of adoption and innovation within the space. The year expanded the concept of tokenization from merely used as a stable coin to establishing New Eras of NFT and Metaverse to the DeFI Space. 2021 certainly still remains as an important year for the DeFI Space even though it was shortly followed by a disastrous 2022.

A few years of roller coaster ride and we came at the Fourth Halving which just occurred on 19th April 2024 as block reward was again halved from 6.25 BTC to 3.125 BTC. This latest halving brought in uncharted territory for the DeFI Space as Pre — Halving prices were already at an all time high but it was followed by a correction shortly after. We are obviously just a few days away from the Halving event and there is still much to be seen as 2024 rolls along!

Opportunities to be discovered in 2024?

Bitcoin has been through much journey during the previous halving and it continues to grow despite the corrections that have happened. It broke everyone’s expectations by reaching the $70,000 mark in March 2024 with predictions reaching 6 figures within the year but it currently stands at $57,000 with deeper corrections seemingly upon us. Every downturn can present itself as a Threat to some but an Opportunity for others. Which side are you on?

Source: https://bitperfect.pe/en/the-bitcoin-halving-really-is-different-this-time/

The latest opportunities seem to lie on the evolving trend of Web3 and Real World Asset Tokenization within the DeFI Space. The rapid development of Artificial Intelligence and Machine Learning has built up the framework for making Web3 into existence as payment and other financial activities can all be done digitally through the internet. The growth of the Web3 space has been astounding in the past couple of years and it’s interesting to watch Post — Halving.

Another of the Big Trend is obviously the Tokenization of Real World Assets which has been heavily discussed to be the “Go — To” destination for the future. Over the years, the DeFI Space had realized the potential of tokenization and left behind the old idea of this technology simply being used to create Memes Coins or Digital Art. The capability of tokenization is massive as it can encompass pretty much every part of our daily lives and the immediate future for the DeFI Space.

Companies like Blackrock and other investing firms are going into the Era of Real World Asset Tokenization and this further supports the growth of the space which came to origin only a couple of years back. The fusion of Stability from the Real World Assets and the widespread Accessibility of Blockchain Technology is an amazing prospect to look out for in the near future. With this growing prospect of the Real World Asset, it is obviously an amazing opportunity for all of you to deepen your knowledge and choose the right project that will have amazing growth over the long run as this trend fully develops. The question is, are you a part of the revolution?

We from the Nagaya Technologies Pte. Ltd are proud to be amongst the pioneers within the Tokenization of Real World Asset space. The award-winning concept behind the “Nagaya Method” was developed in 2018 as we understand the need to realize the potential of Blockchain technology with the support of Real World Matured Asset in order to provide sustainability over the long run. Nagaya becoming the World’s First Hybrid Digital Asset continues our commitment to expand real-life adoption of Blockchain Technology. Intrigued to know more about Nagaya, you can visit us at www.nagaya.co

Or you can obtain your Nagaya now through the Latoken Platform at https://latoken.com/exchange/NGY_USDT

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Nagaya Technologies

NAGAYA (NGY) is a Gold-Backed Cryptocurrency with Subsidiary Projects. We aim to build Trust and Value through LEGALITY and TRANSPARENCY. https://nagaya.co/