2024 is poised to become the Ethereum network’s most significant year to date

2024 is poised to become the Ethereum network’s most significant year to date, driven by the expansion of Chain Development Kits (CDKs) offering new possibilities for developers.

This year could mark a pivotal moment in Ethereum’s history with the potential approval of an Ether spot exchange-traded fund (ETF) in the US, alongside the first bull cycle since the Merge in 2022. The Merge update renders ETH deflationary during periods of high network activity, with 0.2% of the Ether supply already burned since its implementation.

Additionally, Ethereum Improvement Proposal 4844, scheduled for this year, aims to make layer-2 (L2s) blockchains built around Ethereum up to 10 times cheaper, marking a significant milestone in the network’s evolution.

Ethereum serves as a programmable database and decentralized application (DApp) development platform, with its value contingent on the existence of valuable applications. While some native Web3 applications exist, the majority will likely come from traditional companies adapting their systems to integrate with the blockchain.

However, past cycles have seen limited guidance for businesses navigating blockchain integration, leading to many projects floundering. In 2024, this dynamic is expected to shift as the blockchain ecosystem matures and specialization becomes more prevalent.

Major L2 blockchains are segmenting into subchains tailored to specific use cases, facilitated by Chain Development Kits (CDKs) like Polygon’s. These CDKs enable the creation of subchains with specialized configurations, catering to niche markets such as Bitcoin rollups, oracle extractable value (OEV), gaming, tokenized asset issuance, and e-commerce loyalty programs.

Overall, 2024 promises to be a transformative year for Ethereum, characterized by increased specialization, innovation, and the emergence of tailored solutions to meet the diverse needs of the decentralized ecosystem.