Is “The Bull Run” coming to an end?
The word “Bull Run” is a term you frequently heard over the course of the last 6 months and deeply rejoiced by the community within the DeFI Space. It has been a Bull Run for the ages so far in 2024 and outperforming many major indexes along the way as Bitcoin is finally back to where it belongs. While some are excited for what is to come over the year, others are worried that we may have reached the peak of this Bull Run. So are we heading for a new high in 2024 or is “The Bull Run” coming to an end?
The Historic Bull Run……..
Every enthusiast within the DeFI Space surely rejoiced when 2024 turned up as it is supposed to be a year for a new start. The excitement and growth was seen as forthcoming to some but as a miracle for many who predicted doom for Bitcoin & Co. Fresh from the challenges surrounding the DeFI Space as crackdowns and collapse looms large to many DeFI institutions, the main priority was survival for 2023 and beyond.
2023 was deemed as “The Year Somehow Crypto Didn’t Die” to reflect the sentiment going around the community but it instead ended the year with something more to be hopeful for. While the first semester of 2023 might instill uncertainty and fear on what the future may be, the 2nd semester is possibly where things start to turn up for the DeFI Space and left all of us wondering for the end of the “Winter Phase”.
It paved the way for a “Historic Bull Run” as most would call it to be which is filled with New Peaks never seen before since 2021. After years of persistence and near misses, Bitcoin finally breaks its all time high in March 2024 with a new record of $73,000 while other Digital Asset also finally breakthrough its benchmark. The Market Cap of the DeFI Space is also slowly inching closer to it’s all time high of $3 Trillion that is achieved in November 2021.
The records also continue to flow to the Total Value Locked within DeFI Applications as it has already doubled its 2023 figures while NFT Floor Price continues to recover. Memecoins which are an integral part of 2021 Bull Run are also back in popular demand for any speculators to enjoy as Pepecoin and Dogwifhat seems to be grabbing the headlines. While the Crypto global user base shows prominence growth to reach 1 Billion users by 2030.
Much of the excitement behind this year’s “Historic Bull Run” is attributed to the imminent Bitcoin Halving that is expected to fall in April 2024. The Scarcity driven by the Bitcoin Halving was not only instrumental in propping up the value of Bitcoin but also spread growth to the DeFI Space as a whole. It has also been valuable in defining New Eras that could prolong the Bull Run to 2025 with the Dynamic Shift to Real World Asset being the key era to focus on.
Real World Asset has been a growing trend for some years and major momentum was accumulated during the past 6 months. With this New Era and growth, 2024 Bull Run has seen many historic achievements across its path so far but while its figures are still far from the 2017 Bitcoin Boom, there are plenty of catalysts that point out that it has much to achieve within the rest of the year and new highs are upon the horizon.
First of the Catalyst arrived at the beginning of 2024 as 11 of the Spot Bitcoin ETF are approved by the SEC and would begin trading on the next day. This Spot ETF is vital to not only connect the DeFI Space and TradFI but also would bring in more liquidity to support its growth. This then offers variety for investors who want to be involved with the DeFI Space and is expected to bring more than $10 Billion a day to the DeFI Markets.
These extensive amounts of liquidity are supported by the second catalyst which is the healthy on-chain fundamentals as the DeFI Space looks to learn from the previous Bull Run. There has been a positive shift in stablecoin inflows from users which enable them to have more capital with Stablecoins being a huge pillar in facilitating those trades within the market. This influx of stablecoin capital, as indicated by rising stablecoin reserves on exchanges, typically fuels the momentum for Bull Runs.
The third catalyst might frequently go unnoticed but is vital to the growing presence of the DeFI Space which is the Adoption within the Asia Region. Asia currently holds more than 50% of the world population and is on the path to global economy by the next decade. The Asia region might have gone under the radar during the previous Bull Run due to the pandemic but is a major factor in its survival throughout 2023 which is why the growth within the region needs to be sustained.
These all catalysts combine together to paint a small picture as to why Digital Asset became the best performing asset within the last couple of months. 2024 has just entered the first quarter of its journey and optimism is high to view what it may bring towards the rest of the year, It is then imperative that we focus on the right project that we can jump on and will grow sustainably over the long course of this historic run!
Is “The Bull Run” coming to an end?
“Every Good Things Must Come To An End Even Though Nobody Wants It To End”, this statement is a reflection of everyone within the DeFI Space. The Historic Bull Run we are all currently experiencing might have to end at some point as the market stabilizes its cycle but the question is are the momentum ending? Some of the factors behind this question was obvious pointed out Bitcoin meteoric rise to it’s All Time High while only to fall a couple of days after.
While its value certainly experienced a dip, Bitcoin’s trading volume continues to pose strong results over the past couple of days and this is a number we can focus on. Every Digital Asset out there experiences correction but with a worldwide global adoption and continued stream of liquidity towards Bitcoin, there is a strong reason why the Bull Run should be able to continue. The Bitcoin Halving should also add an extra layer of scarcity to the optimism for the Bull Run.
The regulatory crackdowns experienced during 2023 also serves as a blessing in disguise in providing clarity for compliance with the regulatory framework. This compliance is what brings the Spot ETF to provision but also in ensuring where DeFI stands within the regulation which then a massive challenge in the path for the Bull Run to continue. It also will be vital in crafting the right regulatory framework for the future of the DeFI Space.
With all the excitement for the Bull Run there is always a shadow of uncertainty that surrounds the DeFI Space as plenty of Elections will go on in key nations such as India, Indonesia and the United States which could bring new challenges in the process. All in All, there are plenty of reasons that support why this Historic Bull Run would continue to break benchmarks while elevating the future great innovators of the space to reach new heights in the process. The question is, are you a part of the journey?
We at Nagaya Technologies certainly believe that there is a huge potential that is still waiting to unfold in the exciting 2024 we have right now. This moment is the right time to push boundaries and capabilities of blockchain technology to ensure greater innovation. Nagaya being the World’s First Hybrid Digital Asset is the result of combining the enormous potential of Blockchain Technology with Real World Assets. Intrigued to know more about the Nagaya journey, you can read our whitepaper through our official website at www.nagaya.co
Or you can obtain your Nagaya now through the Latoken Platform at https://latoken.com/exchange/NGY_USDT
