# predictions for 2024

- LSTs will become big
- LSTs enables anyone to stake to make a blockchain decentralized, at the same time, use that liquidity to bootstrap any defi protocol
- there are more than 28M eth staked as of dec'23
- these much liquidity would've been locked without lsts
- many other usecases popped up using LSTs like Restaking
- Restaking
- Eigenlayer recently launched and its TVL grew quickly to ~$1B
- Restaking allows LSTs to be restaked and then using that for giving economic security to other usecases through the use of this protocol
- Other chains will see similar kind of launches, once the usecases becomes clear and useful for that chain
- eigenlayer can be used by any rollup built on ethereum, to also be backed by the economic security of ethereum
- Data availability
- We think 4844 will not give the desired output of throughput that rollups are expecting to achieve high TPS
- rollups will tend to use offchain DA like celestia, avail etc to meaningfully scale their rollup to accomdate users
- Native yield
- Blast offered a simple but new model, where they stake any token that is deposited into their protocol, giving user yield on their parked token in the L2
- this model will be used by a lot of other L2s to bootstrap liquidity quicker
- many protocols will also use the same airdrop strategy as blast, to increase more liquidity, as we recently saw blast's tvl shot up to ~$1B, without any development on their L2
- Parallel VM
- FuelVM, Parallel EVM, SVM and Aptos/SUI VM are all parallel VM
- As we recently saw, Solana is seeing a resurgence of activity and it is due to its low gas and fast execution all powered by a parallel VM
- These above mentioned blockchains will see a very high growth in 2024 with the narrative around parallel VM being formed
- RFQs
- Most of the swapping (same/cross chain) will happen through RFQs
- they provide best price and fast execution speeds than other solutions
- they are slightly centralized, as only specialized MMs can provide liquidity
- Modular vs Monolithic
- Modular ecosystem refers a set of specialized blockchains or elements pieced together to create rollups/blockchains
- Monolithic ecosystem refers to blockchain which controls every element like storage, consensus, execution etc
- There is a lot of debate around which one is the best, but we think both are good at there place, and time will tell what is good
- Rollups will try and find a incentivisation scheme around provers
- Bitcoin & BRC20
- BRC20's ecosystem will boom on Ethereum w/ Multibit
- Multiple innovations on bitcoin using inscriptions will happen, which will be interesting to watch out for
- Stacks is very good to watch out for
- ZK
- ZK saw boom with launch of multiple zkEVM last year
- It will see more boom in 2024, most of the zkEVM will start attracting some liquidity through various tactics
- Aztec will launch in 2024, which has some very good innovations around private and public execution
- Polygon and Nil's world of zk rollup will be an interesting space to watch out for
- Intent
- Intent had a brief boom, but there weren't any significant launches as such, so the boom dried out
- But with launch of Namada and Essential, we might see some more hype and real usecases being built
- UniswapX/CoWSwap captured a lot of volume
- AA
- RIP-7056 will help rollups integrate native AA
- Ethereum will still require out-of-protocol AA
- PBS & MEV
- Ethereum community will need to find some incentivisations for running relay, or atleast enshrine it
- MEV will likely increase, as more chains adopt OFA kind of model
- RaaS
- first question, why do we need more evm compatible chains
- we are more bullish on appchains, where simple web2 backends are converted to rollups than deploying another instance of zkevm, or some other vm
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