- John Wu, Ava Labs President has shared insight into the outlook for 2024.
- He foresees growth in SocialFi protocols, Bitcoin spot ETF approvals, and a tilt to real-world asset integration.
With 2024 only a few months away, John Wu, the President of Ava Labs seems very bullish about the year. He has made some positive predictions about the cryptocurrency industry in the coming year including the potential approval of spot Bitcoin (BTC) Exchange Traded Fund (ETF) by the United States Securities and Exchange Commission (SEC). Wu listed these speculations in an interview with CNBC.
Wu stated his predictions with Web3.0 social media platform Stars Arena which launched on the AVAX blockchain last month. Stars Arena is a decentralized social finance application (SocialFi) and is a close competitor to Friend Tech. The Ava Labs President stated that Stars Arena and many other SocialFi are going to dominate the online space. This nascent sector has had its ups and downs but Wu is positive that in 2024, the SocialFi business model will be fixed.
Earlier this month, the Chief Executive Officer (CEO) and Founder of Ava Labs, Emin Gün Sirer, commended the Stars Arena team for designing such a platform that upholds user engagement. Markedly, the SocialFi platform had recently come under attack which saw about $3 million of users’ funds stolen.
The team is now collaborating with blockchain experts including Paladin Blockchain Security to rebuild its infrastructure.
Ava Labs President on Possibility of a Spot Bitcoin ETF Approval in Q4 2023
In the case of a spot BTC ETF, Wu says there is a potential that the approval could come in Q4 of 2023 and when it eventually happens, there would be huge inflows into the market.
His projection about inflows supports a revelation by the blockchain analytics platform CryptoQuant. CryptoQuant is positive that Bitcoin’s market valuation could soar to a colossal $900 billion, following a spot BTC ETF greenlight from the SEC.
This would attract an additional $1 trillion in the broad cryptocurrency market capitalization. However, on the part of having the spot Bitcoin ETF approval come before the end of this year, Wu predicts this may be far from reality. With the U.S. regulator’s decision to postpone its decision on several applications including that of BlackRock, Invesco, Valkyrie, and Bitwise, it is likely that an approval may not come until 2024.
Eventually, the regulator would be required to have made a final decision on these applications by mid-March of next year irrespective of the maneuvers it makes until then. For ARK 21 Shares Bitcoin ETF, the final deadline for a review of its spot Bitcoin ETF application is January 10th.
Finally, Wu brought his prediction home by talking about what the next year holds for Ava Labs. The company’s executive highlighted Avalanche’s plan to roll out real-world assets in partnership with Traditional Finance (TradFi) banks and asset managers. According to Wu, some of these real-world assets will be made public next month.
Wu’s predictions and those of other analysts are an indication of the general outlook for next year.
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