Cryptocurrency investments should more closely follow market adoption patterns.Many say that Web3 is just a place for imagination because of its ability to make millions overnight, because memes are more important than useful. Old manufacturers and dreamers will soon lose faith in the future of the industry. In addition to media reports, there are other bright spots. Blockchain and cryptocurrencies are very beneficial to people, especially in emerging markets. Society is experiencing a fundamental shift in the way Web3 technology empowers the poor and underbanked and overcomes the shortcomings of new and legacy financial institutions. Investment must continue. Developing countries lead the adoption curve By 2024, the World Bank estimates that 1.4 billion people worldwide will lack access to finance. The partnership aims to address the problem of unequal distribution of wealth. The industry must support other innovators who are committed to driving change. Africa is one of the leading regions for cryptocurrency adoption, due to low access to banking services. Even in 2021, nearly 300 million adults in sub-Saharan Africa still lack access to basic financial services. Lack of access significantly limits people’s ability to manage their daily lives, save and invest money – let alone run a business. Crypto is changing that narrative. According to Chainalysis’ 2024 Global Cryptocurrency Adoption Index, developing countries are leading the pack, with countries like India, Indonesia, and Nigeria leading the way. Sub-Saharan Africa has the highest Bitcoin adoption rate in the world at $98,330 in 2023, with Nigeria leading the global cryptocurrency adoption index. By mid-2023, Sub-Saharan Africa will account for 2.3% of the global cryptocurrency market cap, with a market value of $117.1 billion. In this space, cryptocurrencies have practical uses beyond their intended use. Things are improving In emerging markets, we are seeing practical uses for cryptocurrencies beyond their use as a hedge. Local entrepreneurs who understand the local issues are driving meaningful change, and new technological innovations are being developed to meet the desired goals. Projects like CARE’s pilot projects in Kenya and Ecuador, which are distributing cryptocurrency-based loans to vulnerable groups, are demonstrating how cryptocurrency can provide access to basic goods and services and boost economic recovery from the COVID-19 pandemic. Non-fungible tokens have become a cross-border fundraising tool. Major regulatory issues could hinder adoption growth. The Indian city of Raipur set a record for blockchain-based assets through an innovative crypto startup called Airchains. This blockchain solution is designed to prevent fraud and reduce processing times from one month to three days. In developing countries, many studies are being conducted to consider this issue. However, Raipur has a bidding process and is willing to deal with this challenging issue. Use the wallets, not the shiny new ones Although the flow of capital to cryptocurrency projects in emerging markets is increasing in importance, it is still light compared to the funds available to projects in developed countries. In 2023, developed countries, especially the United States, will invest approximately $1.975 billion in the third quarter alone, with US companies accounting for 34.5% of all cryptocurrency capital projects. In contrast, developing countries are finding it difficult to access matching funds, with total investment in Africa reaching $1 billion this year, highlighting the challenges in investment plans in these region. Recently, there has been a growing awareness of the potential of emerging markets. Cryptocurrency investments should now focus on where mass adoption is taking place. In emerging markets, cryptocurrencies are more of a tool than a speculative asset.

According to analysts, Ethereum’s relative strength against Bitcoin could rise in January, which could trigger an “altcoin run” for Ethereum. One cryptocurrency analyst says Ether is showing signs of a breakout against Bitcoin in January 2025. According to Trading View, Ether’s ETH ticker has fallen $3,499.43, while Bitcoin’s relative strength against the BTC ticker has fallen $98,189, with the ETH/BTC ratio now at 0.0356. MN Capital founder Michael van de Poppe said in a December 24 X post that he “won’t be surprised if ETH/BTC falls below 0.04 in January.” ETH’s strength could trigger an “altcoin run” for Ethereum. The last time the ETH/BTC ratio hit the 0.04 level was on December 8, when ETH was trading at $4,018, just above the psychological $4,000 level. Van de Poppe predicts that in January 2025, there will be an outflow into Bitcoin while Ether will increase in inflows, which could stabilize the price. He expects this to trigger a “distribution of altcoins in the Ethereum ecosystem.” Shiba Inu SHIB (ticker $0.00002314) and Mantle MNT (ticker $1.25), the second and third largest tokens in the Ethereum ecosystem outside of stablecoins, have risen 7.10% and 3.32%, respectively, in the past 24 hours. Bitcoin continues to trade below $100,000 at $98,805, according to data from CoinMarketCap. It hit the six-figure price milestone for the first time on December 5. Analysts See Ether ETFs Outperforming Some analysts have noted that Ether spot exchange-traded funds (ETFs) could outperform Bitcoin ETFs in 2025. ETF Store President Nate Geraci said in a December 20 X post that “Net inflows into ETH ETFs are currently at the same level as gold ETFs, but we expect inflows to accelerate from here.” Related: Why Ethereum Maxis Says ETH Will Be the “Comeback Kid” of 2025 Pseudonymous crypto trader Brent expressed a similar opinion, This came shortly after a crypto analyst said Ether’s underperformance against Bitcoin may soon be coming to an end. Into The Cryptoverse founder Benjamin Cowen wrote to X in December. 4. He believes that the ETH/BTC crash is over (or almost over) and that the uptrend should continue over the next 6-12 months.

While Bitcoin is expected to be profitable in 2024, many mining stocks are continuing to record losses this year. Bitcoin fell to $96,255 on December 24, with a 2024 return of 113%, but most mining stocks managed to boost the cryptocurrency’s profits and ended in the red. According to data from Hashrate Index and Google Finance, the majority of registered miners will end 2024 in negative territory, with losses reaching 84%. Of the 25 mining companies listed in the index, only seven have made a profit for investors this year. At the time of writing, Bitdeer (BTDR) is up 167%, Cipher (CIFR) is up 33%, Hut 8 (HUT) is up 91%, Iris Energy (IREN) is up 72%, Northern Data (NB2) is up 58%, Core Scientific (CORZQ) is up 327% and TeraWulf (WULF) is up 169%. On the other hand, Argo Blockchain (ARB) is down 84%, Sphere 3D (ANY) is down 69%, MARA Holdings (MARA) is down 12%, Hive (HIVE) is down 29%, and Greenidge (GREE) is down 74%. For example, Bitfarms (BITF) fell 44% and BitFufu (FUFU) fell 18%. Challenges facing miners in 2024 Overall, 2024 will be a year of adjustment for Bitcoin mining companies as they deal with falling prices and rising costs and find new sources of revenue to stay afloat. Miners have earned more than $71 billion since the network’s inception, but every four years, their income from mining new blocks is cut in half during a halving event. The most recent Bitcoin halving occurred in April, reducing the mining fee from 6.25 BTC to 3.125 BTC. According to Blockchain.com, mining revenue was $42 million as of December 22, down from a peak of $100 million in April.At the same time, the difficulty of creating a new block on the Bitcoin blockchain has doubled compared to last year, fueling the increasing costs of Bitcoin mining. Bitcoin’s average difficulty is currently 108.52, up from 72.01 last year and up 50.71% over the past 12 months. Mining costs have also risen sharply due to the increase in costs. For example, BitFuFu reported that Bitcoin mining costs increased by 168% to $51,887 per BTC, while mining power increased by 62.5%. In order to increase their financial position, many listed mining companies have turned to the capital markets. Nine of the 13 Bitcoin mining companies listed in the US raised a total of $1.25 billion through share offerings in the second quarter. This trend continued in the third quarter, with an additional $530 million raised, bringing the total to $2.2 billion. In addition, many companies are looking to transform their operations by 2024. Bitcoin mining firm Core Scientific has entered the artificial intelligence space by partnering with CoreWeave to host Nvidia GPUs, aiming to meet the growing demand for intelligent computing power. The partnership will bring Core Scientific $8.7 billion in revenue over the next 12 years. Some mining companies are following the lead of publicly traded companies and using Bitcoin reserves to bolster their portfolios. The latest in this trend include MARA and Hut 8.