7 trends that will shape the cryptocurrency market in 2023

 The cryptocurrency market has undergone massive changes over the past decade, but in the last quarter of 2022, it has witnessed a series of crashes and bankruptcies that have rocked the entire market cryptocurrency, shocking investors.

cryptocurrency market

The collapse and bankruptcy of FTX - the world's third-largest cryptocurrency exchange, previously worth $32 billion - has shaken investor confidence.

Core Scientific, one of the largest publicly traded cryptocurrency mining companies in the United States, which primarily mines bitcoin, filed for bankruptcy on Dec. 20, 2022, saying it happened due to declining cryptocurrency prices and rising energy costs.

In general, the cryptocurrency market lost over $2 trillion in 2022, and other digital currencies such as bitcoin fell below their all-time highs in 2021.

But the cryptocurrency market is very rich in different currencies and some of them can be a much better option than (bitcoin) Bitcoin because some of them are already performing very well and presenting great opportunities for a very significant increase in their value in 2023.

But does this mean that the cryptocurrency market could recover in 2023? Will regulators play a bigger role? What will companies do to deal with the current series of collapses?

Here are the top 7 trends that will shape the cryptocurrency market in 2023:

1- Follow a policy of greater transparency:

Transparency is the most important requirement in the digital crypto giant market now, 2022 has shown it to be a must, so companies and trading platforms will make their practices more public and transparent so the public can restore confidence in the industry.

Some notable companies, such as Binance, Coinbase, and others, have already started rolling out new mechanisms to prove their reserves. After the bankruptcy of FTX, Binance launched a mechanism called (Proof of reserve) - aka (PoR) - at the end of 2022, which aims to prove that the balances of depositors and the public are compatible with their deposit operations, and independent third parties carry out audits according to This mechanism is intended to secure data reserves against tampering attempts.

So, 2023 is set to become the year of transparency for crypto businesses. first of all; Any platform will have to prove what they are doing by showing their reserves of funds, and some leading companies may establish rules to regulate the matter, and there may appear an independent group of people who will impose certain rules on companies to make transparency towards users.

2- Multiply organizational campaigns:

The huge losses recorded in the cryptocurrency market in 2022 confirmed that the market needs global regulators to act to end the risks of missing key protections in 2021, and around three-quarters of investors lost the money they had invested in it.

The collapse of the FTX exchange and criminal fraud charges against its founder (Sam Bankman-Fred) has caused widespread embarrassment in the US Congress and among regulators, as Bankman and other senior FTX executives have made generous campaign donations from both Democrats and Republicans, and they also played a key role in trying to create a framework. The new regulations reflect some of the priorities of the crypto market.

Although the crises in the crypto sector have not destabilized traditional financial markets, these bodies have been criticized for not taking action to combat the worst abuses in the sector.

Regulatory campaigns for the digital currency market are now everywhere, because there are also developments in Europe in this field, and there is no doubt that these regulatory campaigns will be beneficial for existing companies, and will regulate the presence of companies emerging in this market as well.

3. Companies are adopting more NFTs:

The value of the global Non-Fungible Tokens (NFT) market was around $15.5 billion in 2021, and it is expected to reach $122.43 billion by 2028, so these tokens are expected to see huge participation in 2023.

NFTs are a type of crypto-asset because they allow the user to own a digital asset, such as a painting, a video, a shoe, a shirt, and other assets that you can buy, but what you buy you will never wear. NFTs are a crypto asset, not a cryptocurrency, they are based on ether and the Ethereum cryptocurrency is used for purchases.

In 2023, it is expected to see more real-world tangible assets converted into crypto tokens, which will make the buying, selling, and trading of these assets more efficient while reducing the risk of fraud. Examples include Adidas offering its NFT line of products, Reddit offering Avatars in exchange for NFT which generated nearly $5 million in sales, and Starbucks' NFT-based loyalty program.

4- Bitcoin's next rally:

Several industry experts have talked about Bitcoin's historical cycles that occur approximately every 4 years, where Bitcoin typically hits an all-time high and then experiences a dramatic decline.

Anthony Scaramucci, the founder of SkyBridge Capital, called 2023 a “year of recovery” for Bitcoin and predicted that it would trade between $50,000 and $100,000 within two to three years.

Meanwhile, venture capitalist and cryptocurrency veteran (Bill Tai) said, “The start of the uptrend for Bitcoin could take us a year away from it, as the aftermath of the collapse of FTX could continue to be felt for up to 6-9 months. " other.

5- The growth of WEB 3.0 platforms:

The value of the global Web 3 market reached approximately $3.2 billion in 2021, and this growth is expected to continue to reach $81 billion in 2030, thanks to the increased use of new technologies based on (Blockchain) Blockchain.

And since (blockchain) is contributing to the growth of (crypto assets) Tokenization of securities, in 2023 we may see some people using their WEB 3.0 wallets to own physical items.

The question remains, how will crypto assets be regulated? Experts believe that the next wave in the world of cryptocurrency may be through owning physical assets by owning the tokens of those assets, and it may also contain space for NFT tokens but slightly modified.

For most people, NFTs are no longer just an art, but when they can own land, a house, or a car, it will allow them to understand the real use of these blockchain technologies.

Web3 and the decentralization of the crypto market will allow users to trade much faster without intermediaries, so conditions in the markets are expected to shift crypto projects from speculation to more profitable ones, and the emergence of more web-based platforms3.

6- The success of the Dash 2 Trade platform to facilitate cryptocurrency trading:

In the aftermath of the FTX crash, there has never been a need for a platform like Dash 2 Trade again, as this platform offers analytics and insights that will facilitate cryptocurrency trading, allowing investors to make smarter decisions.

The platform also helps traders determine which new projects are worth investing in and which are not. The platform has so far been very successful in cryptocurrency trading, and it This platform is expected to facilitate currency trading in the year 2023.

7. Most meme cryptocurrencies are gone.

The currencies themselves are digital currencies, such as Bitcoin or Ethereum, but they are the currencyEncoded files that may be associated with pop culture references or internet jokes, and maybe Like the memes they're based on, they're designed to go viral and be shared, usually represented by funny images.

Over the course of a year in 2021, the share of Shiba Inu currency – one of the digital meme currencies – has increased by 44,540,000%, As for the Squid, a currency named after the famous Korean series (Squid Game), its share price rose by more than 75,000% in less than a week and disappeared after a short period. Thus, most meme digital currencies are expected to disappear in 2023.

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