Can the long-awaited 2024 halving really be the catalyst for DeFi’s next boom?

As we all know "2024 =Bitcoin"Half Year Halving" is also an event that all fans have been waiting for. Looking at the performance of past halving years, it’s easy to understand why everyone is excited about next year. Now, as the penultimate month of 2023 approaches,AnalystPredictions have reached their peak, let’s take a look at the buzz behind the 2024 halving event. it can really DeFi Will space lead to a great year?

1. Bitcoin halving: What is it?

Bitcoin is finally becoming popular again and is back in the spotlight after a challenging 2022. Bitcoin finally breaks through $35000 美元mark, there seems to be a rebound never seen in the last quarter of 2023. Although"ETF” is a Bitcoin maximalist and DeFi It is a word that is highly valued by the industry community, but the word "halving" is also a word that is often praised as we move towards 2024.

a lot ofAnalystPrediction, as the chart shows, Bitcoin will hit 2024 by 10美元mark, the community is just hoping this rally marksBear marketend. The word "halved" appears in everyAnalystare common in predictions, which sparked huge discussion in the community. You may ask why this halving event is special? To understand the halving and what it actually represents, we need to understand the origins of the Bitcoin network.

Therefore, Bitcoin was launched in 2008 by Satoshi Nakamoto as aBlockchain networkpeer-to-peerpay onlinesystem. Its peer-to-peer network means the system isDecentralizationThe way it works, Bitcoin transactions are verified by everyone who has a copy of the ledger. This kind ofDecentralizationThe network is the first of its kind for Bitcoin and forms an important part of the security behind the blockchain system.

These users of the Bitcoin blockchain who verify the authenticity of transactions are called miners and are rewarded with a certain number of Bitcoins for their efforts. As Bitcoin began to receive widespread attention from the community, these transactions began to become more common, and suddenly a new group of interested miners appeared. Now, "halving" is a system that conforms to the limited supply of Bitcoin and ensures that there will still be enough Bitcoin to be mined for years to come.

The Bitcoin halving or "halving" is an event that occurs every four years in the 2100 million Bitcoin network. This is an event that cuts the reward for validating a single block of transactions on the Bitcoin network by half in order to limit the amount of new Bitcoins that are generated. Although the exact date is unclear, the next Bitcoin halving is expected to occur around April 2024 when block 4 is reached, with the block reward dropping from 840000 Bitcoin to 6.25 Bitcoin.

These halvings are not only meant to keep the supply of Bitcoin meeting demand, but also to keep the Bitcoin network functioning for years to come. Miners are BitcoinBlockchain networkAs long as the rewards remain in place, we can rest assured that the blockchain system will continue to operate. A big reason for this is obviously for traders looking to capitalize on the momentum and hype behind this particular event.

Why is this a special event, you might ask? We know from history that the momentum Bitcoin gains is usually DeFi Other numbers in the field资产catalyst. Bitcoin remains the most popular number in crypto资产, it can be fairly seen DeFi The market value of the space will follow its trend. That's why halving this DeFi Highly sought-after events in the field. Expect to seeCryptoThe end of winter.

The first halving event occurred on November 2012, 11, when the network reached 28 blocks since its launch in 2009 and the reward was halved from 210000 BTC to 50 BTC. At that time, Bitcoin was still relatively unknown to the general community. After the 25 halving, the price of Bitcoin went from 2012 to 12 in less than a year. 美元Soared to 1032 美元(over 8,500%), growth begins to attract moreinvestmentwho join.

The second Bitcoin halving occurred on July 2016, 7, when the network had reached 9 blocks since launch, and the reward was further cut in half, from 420000 BTC to 25 BTC. At that time, the value of Bitcoin had reached 12.5 美元, but experienced a massive crash shortly thereafter in 2017. The crash proved to be temporary and rebounded around 2018 to 20089 美元of all-time highs as it experienced a second boom period since its inception.

The third Bitcoin halving occurred on May 2020, 5, when the network reached 11 blocks since its launch, and the reward was cut in half again, from 630000 BTC to 12.5 BTC. It's a strange thing because it's happening in the midst of the uncertainty of a pandemic, but it's during this time that the economics of the system are starting to shine through. Despite economic uncertainty and lockdowns, Bitcoin has managed to rebound to its current all-time high of 6.25 just 18 months after the halving 美元.

Unfortunately, we all know what happened before this amazing rally, but due to the economics behind the system, the halving event appears to be DeFi A good catalyst for space. As long as demand for Bitcoin remains strong, smaller supply should theoretically provide greater value, but this is no guarantee. So what will be the outlook for Bitcoin after the next halving in 2024?

2. What will happen in 2024? DeFi Does the trajectory of space have a big impact?

As mentioned above, no matter what happens to Bitcoin, it should theoretically be DeFi Growth and development in space have large-scale impacts. The Bitcoin boom of 2021 is a great example of this as it provides DeFi Space has brought many new developments.NFT 和Meta universeThe concept of was a non-existent topic before 2021, and with morecreatorStart joining and explore this area, it will only continue to grow.

This growth is also reflected in the user base, as DeFi Space became the most talked about opportunity during the pandemic, with the number of users almost tripling from the previous year in 2020. This subsequently prompted more institutions to expand DeFi Space function and other different numbers资产Providers introduce innovations. Of course, value is still the most obvious impact of the halving, but there is a lot of growth that comes with the event.

When talking about value, we know DeFi The space can also be an unstable one, so we all need to be careful with the DeFi projects we choose. The halving may also cause some miners to lose interest in the network as they receive fewer rewards than before, so the Bitcoin network may undergo some adjustments, but it also ensures that the Bitcoin supply will always be there for years to come.

All in all, the halving event has huge potential to positively impact the trajectory of the DeFi space in 2024. Combined with the positive momentum Bitcoin is currently gaining,AnalystIt is reasonable to predict that Bitcoin may collapse and reach all-time highs by 2024, but we also need research to prove our own predictions are correct.