As we approach the end of 2023, many crypto sector observers predict that tokenization will be one of the biggest trends in 2024. The sector is poised for significant growth, from new stablecoin projects offering novel yields to the tokenization of real-world assets (RWAs). Market analysts are anticipating various developments in the sector for the upcoming year.
Sveinn Valfells, co-founder and CEO of Monerium, believes that everything conceivable on blockchain ecosystems will integrate into the blockchain space in 2024, marking a major trend. He emphasizes the indispensable role of fiat currencies and traditional assets in blockchain integration and trading. On-chain fiat projects, a subset of fully authorized and regulated stablecoins, are expected to gain momentum in 2024, driven by the excitement around the RWA sector and their potential to revolutionize the industry, as well as peer-to-peer (P2P) payments within the ecosystem.
Valfells envisions a future where bonds, stocks, and treasuries are seamlessly integrated into blockchain networks, with 2024 being a significant step in this journey. He’s not alone in his optimism for tokenization. Kevin de Patoul, co-founder and CEO of Keyrock, also has his sights set on this sector and foresees tokenized treasuries continuing to play a crucial role in 2024, serving as a bridge between traditional finance (TradFi) and decentralized finance (DeFi).
De Patoul predicts that the biggest market trend for DeFi in 2024 will be the tokenization of all assets, which is expected to increase liquidity, reduce transaction costs, and provide new opportunities for DeFi protocol designs. Danny Chong from Tranchess agrees that tokenization processes will empower much of the DeFi sector in 2024, leading to remarkable growth in some areas.
Chong is among the industry figures who foresee the importance of tokenization in shaping the coming year. He notes that the 2023 tokenization hype not only showcased the versatility of the blockchain space but also positioned it as a powerful force in bridging the gap between traditional and decentralized finance, bringing more accessibility and liquidity.