The cryptocurrency industry has entered a pivotal phase of maturation, driven by technological innovation, regulatory clarity, and increasing institutional adoption. As we step into 2024, the convergence of macroeconomic shifts, blockchain upgrades, and emerging narratives sets the stage for transformative growth. At the forefront of this evolution is OKX Ventures, a leading investment arm with a strategic focus on high-potential projects shaping the future of Web3.
With over $50 million invested in 2023 alone, OKX Ventures has strengthened its portfolio across critical sectors including Layer 2 solutions, Bitcoin ecosystem expansion, AI integration, DePIN, and fully on-chain gaming. This report outlines seven key predictions for 2024 and highlights the most promising projects poised to lead the next wave of innovation.
The State of Crypto in 2023: Resilience Amid Challenges
Despite two consecutive years of bear market conditions, the crypto industry demonstrated remarkable resilience in 2023. The total market capitalization surged to $1.761 trillion**, with Bitcoin reclaiming its position among the top 10 global assets by market cap, reaching **$827 billion by year-end. Institutional interest remained strong, with $9.11 billion raised across 1,179 funding rounds.
OKX Ventures played a crucial role in sustaining momentum during this period. Rather than retreating, the firm strategically expanded its investments and ecosystem partnerships. It deepened collaboration with major blockchains like Solana, Near, Polygon, and Avalanche, launching dedicated ecosystem funds to support developer growth. Additionally, OKX Ventures co-hosted hackathons in San Jose and Hong Kong with Gitcoin and Blockbooster, nurturing early-stage innovators.
"Even in downturns, conviction drives progress. Our investments reflect long-term belief in digital ownership, decentralization, and open finance." — OKX Ventures
Moreover, OKX Ventures is increasingly supporting projects built on its own public chain, signaling a broader commitment to fostering an open and interconnected Web3 ecosystem.
Key Investment Areas in 2023
OKX Ventures’ portfolio spans infrastructure, DeFi, GameFi, Web3, Bitcoin ecosystems, and AI-driven applications. Approximately 50% of investments were allocated to infrastructure and DeFi, underscoring the foundational importance of secure, scalable, and efficient blockchain networks.
Notable projects backed include:
- Polyhedra, Celestia, Kakarot, Altlayer, Ethena
- Flashbots, Rage Trade, Sei, Taiko, ZKM
- Matr1x, Mocaverse, Orbiter Finance
These investments reflect a clear focus on scalability, cross-chain interoperability, MEV mitigation, and next-generation user experiences.
Layer 2 Scaling Solutions
Scalability remains central to Ethereum’s long-term success. Layer 2 (L2) solutions have significantly improved transaction throughput, reduced costs, and alleviated mainnet congestion through technologies like ZK Rollups and Optimistic Rollups.
Two standout projects in OKX Ventures’ portfolio are:
- Scroll: A native zkEVM L2 for Ethereum (Type 2), offering seamless compatibility with existing Ethereum tools and dApps. By processing transactions off-chain and submitting succinct proofs on-chain, Scroll delivers high throughput at lower costs.
- Taiko: A decentralized ZK-EVM equivalent rollup that allows developers to deploy Ethereum L1 dApps without code changes. It inherits Ethereum’s security while reducing fees and enhancing user experience.
These innovations are paving the way for mass adoption by making blockchain interactions faster and more affordable.
MEV Optimization: Flashbots
Maximal Extractable Value (MEV) refers to profits miners or validators can gain by reordering transactions. While MEV can optimize revenue, it raises concerns about fairness and network integrity.
Flashbots is a leading solution aiming to democratize MEV access, increase transparency, and redistribute value fairly. Its permissionless ecosystem reduces negative externalities and promotes a more equitable blockchain environment—critical for trustless decentralized systems.
Cross-Chain Interoperability Leaders
Interoperability is essential for a fragmented multi-chain world. Bridges enable asset liquidity and data transfer across networks, enhancing flexibility and user choice.
Key players include:
- LayerZero: A full-chain communication protocol designed for lightweight cross-chain messaging with trustless security.
- Orbiter Finance: The most widely used rollup bridge on Ethereum, optimizing ZK-rollup performance by reducing gas consumption through intermediate message routing.
These protocols are foundational to a truly connected Web3.
Cosmos Ecosystem Growth
Cosmos continues to attract high-quality projects like Celestia and Sei Network, thanks to its Inter-Blockchain Communication (IBC) protocol that enables secure cross-chain interaction.
Notable investments:
- Berachain: A Cosmos-based L1 with EVM compatibility and Proof-of-Liquidity (PoL) consensus. It features a three-token economy: BERA (gas), HONEY (stablecoin), and non-transferable governance token BGT.
- Sei Network: A high-performance L1 optimized for digital asset trading with sub-300ms latency. Its built-in Order Matching Engine (OME) enhances trading apps, while anti-MEV mechanisms improve fairness.
Sei’s parallel EVM narrative has recently gained significant market attention.
AI + Web3 Gaming Innovation
Web3 gaming empowers players with true ownership of in-game assets and governance rights. When combined with AI, it unlocks dynamic content creation, intelligent NPCs, and personalized experiences.
Matr1x stands out as a next-gen entertainment platform integrating blockchain, AI, and gaming. It plans to launch a trilogy of interconnected games—Cyber Earth, Mars Immigration, and Interstellar Exploration—under one shared universe:
- Matr1x FIRE (First-Person Shooter)
- Matr1x WAR (Shooter + MMORPG)
- Matr1x EVOLUTION (SOC Game)
This fusion of immersive gameplay and decentralized ownership represents the future of interactive digital entertainment.
Bitcoin’s Expanding Ecosystem
Bitcoin is no longer just “digital gold.” With innovations like Ordinals and BRC-20 tokens, it has evolved into a platform for inscriptions, NFTs, and even DeFi primitives.
Key developments:
- Over 53 million inscriptions created
- BRC-20 transfers exceeding 45.4 million
- More than 5,383 BTC in fees generated from Ordinals activity
OKX Ventures has backed several Bitcoin L2 and application-layer projects:
- Bitmap Tech: Building a decentralized metaverse on Bitcoin via Ordinals
- B² Network: A ZK-based L2 scaling solution embedding proofs directly into BTC inscriptions
- Babylon: Enabling Bitcoin staking to secure PoS chains
- BitSmiley: The first native BTC-backed stablecoin protocol
These projects extend Bitcoin’s utility beyond store-of-value use cases.
7 Key Predictions for 2024
1. Bitcoin Breakthrough: Broader Use Cases and Enhanced On-Chain Activity
Bitcoin’s user base has grown from 5 million in 2016 to over 500 million in 2023 (Statista). Active monthly users now exceed 13.7 million, with on-chain transactions reaching 17.5 million (Token Terminal). The blockchain size has increased by 70% in three years, hitting 542 GB in early 2024.
The upcoming Bitcoin halving in 2024 will further reinforce its scarcity narrative. Meanwhile, protocols like Ordinals, BRC-20, RGB, Taproot Assets, and Runes will diversify asset issuance on Bitcoin.
Innovation in privacy and efficiency is also accelerating:
- Lightning Network upgrades using MuSig2 and PSS improve throughput
- Taproot Assets + RGB introduce new tokenization models
- AssumeUTXO speeds up full node synchronization
OKX Ventures believes Bitcoin will become more than a reserve asset—it will be a vibrant platform for financial innovation.
2. Ethereum’s Dencun Upgrade: Boosting L2 Usability
After a challenging start in 2023, Ethereum rebounded strongly. Total Value Locked (TVL) recovered from $20B to **$30B** by year-end (DefiLlama). Daily active L2 users surpassed L1 users (L2beat), signaling widespread adoption of scaling solutions.
The Dencun upgrade, centered around EIP-4844 (Proto-Danksharding), will introduce blobspace, drastically reducing data availability costs for rollups. This could lower L2 transaction fees by up to 90%, making Ethereum more accessible.
Future upgrades like ERC-4337 (account abstraction), EIP-3074 (smart contract interoperability), and Verkle Trees will further enhance scalability and usability.
3. Alt-Layer 1 Renaissance Led by Solana
While Ethereum dominates research and security, alternative L1s like Solana are gaining traction due to superior performance.
Solana boasts:
- Over 2,500 monthly active developers
- Developer retention rate up from 31% to over 50%
- Over half of devs have 3+ years of experience
Its unique economic model charges dApp teams for compute instead of end-users, enabling near-zero transaction fees. Projects like Helium (IoT), Render Network (GPU rendering), and Teleport (ride-hailing) leverage Solana’s speed and scalability to disrupt traditional industries.
This resurgence positions Solana as a major player in 2024’s infrastructure race.
4. Deep Integration of AI and Web3
AI exploded in 2022–2023 with ChatGPT hitting 1 million users in just 5 days. In crypto, AI is being applied to:
- Decentralized computing
- AI agent automation
- ZKML (Zero-Knowledge Machine Learning)
- On-chain decision-making
OKX Ventures backs projects like MyShell, which combines AI agents with Web3. With over 12k GitHub stars, 50k creators, and thousands of custom AI bots, MyShell exemplifies the power of decentralized AI applications.
AI agents will soon manage wallets, execute trades, and navigate cross-chain environments autonomously—transforming user experience.
5. Blockchain Gaming Evolution & Fully On-Chain Games (FOCG)
GameFi attracted 340 million users in 2023 with over $3.2B in transaction volume (Footprint). Notably, game projects generate 23x more on-chain activity than DeFi protocols.
Projects like Big Time, Ember Sword, and Shrapnel are set to launch AAA-quality blockchain games that appeal to mainstream gamers. The release of $BIGTIME token marked strong market interest in play-to-earn models.
Looking ahead, Fully On-Chain Games (FOCG)—where game logic, assets, and economy live entirely on-chain—are emerging as the next frontier. Though still early, FOCG promises composable game economies and true digital ownership.
OKX Ventures supports innovators like Curio, helping build tools and ecosystems for this new genre.
6. DePIN Sustains Strong Growth
Decentralized Physical Infrastructure Networks (DePIN) leverage blockchain to incentivize real-world infrastructure sharing—from wireless networks to GPU computing.
In 2023:
- Market cap of DePIN tokens exceeded $20B
- On-chain revenue surpassed $15M annually
- Over 650 active projects across AI, sensors, energy, and computing
Unlike speculative assets, DePIN generates value through utility. Even during bear markets, revenue declined only 20–60%, showing resilience.
Projects like Helium (now on Solana) and Render Network are driving user adoption. Expect dedicated DePIN-focused L1s to emerge in 2024.
7. Macroeconomic Tailwinds Fuel a New Crypto Era
Regulatory progress in countries like El Salvador, Canada, Dubai, and Brazil is creating a clearer path for institutional participation. The SEC’s approval of spot Bitcoin ETFs in January 2024 opened floodgates for traditional finance.
Top ETFs like BlackRock’s IBIT ($2.37B raised) and Fidelity’s FBTC ($2.1B) attracted over $6B in inflows (Bloomberg Intelligence).
Meanwhile, stablecoin supply rose to $135B by January 2024 (DefiLlama), indicating fresh capital entering the ecosystem.
With VC funding shifting toward infrastructure and applications built during the bear market, 2024 is set for explosive innovation.
Frequently Asked Questions (FAQ)
Q: What is OKX Ventures' investment strategy?
A: OKX Ventures focuses on long-term value creation by investing in foundational infrastructure, scalable solutions, and high-potential application layers across Web3—including L2s, Bitcoin ecosystems, AI+Web3, DePIN, and gaming.
Q: Why are Layer 2 solutions important?
A: Layer 2s enhance scalability by processing transactions off Ethereum’s mainnet while inheriting its security. They reduce fees and latency—critical for mass adoption.
Q: How does AI integrate with blockchain?
A: AI enhances blockchain through decentralized compute networks, intelligent agents that automate tasks, ZKML for verifiable AI inference, and personalized on-chain experiences.
Q: What makes DePIN different from other crypto sectors?
A: DePIN generates real-world utility by tokenizing physical infrastructure (e.g., GPUs, sensors). Its revenue comes from actual services—not speculation—making it more resilient during market downturns.
Q: Is Bitcoin evolving beyond digital gold?
A: Yes. With Ordinals, BRC-20s, L2s like B² Network, and protocols like Babylon enabling staking, Bitcoin is becoming a platform for innovation—not just storage of value.
Q: What impact will Ethereum’s Dencun upgrade have?
A: Dencun will drastically reduce rollup costs via blobspace (EIP-4844), potentially lowering L2 fees by up to 90%, accelerating adoption of scalable dApps.