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| 7 trends that will shape the cryptocurrency market in 2023 |
The cryptocurrency market has changed dramatically over the past decade, but investors were caught off guard by a series of crashes and bankruptcies that shook the entire cryptocurrency market in the last quarter of 2022.
(FTX) The collapse of FTX - the world's third largest cryptocurrency exchange with a previous value of $32 billion - and the announcement of bankruptcy have shaken investor confidence.
Core Scientific, one of the largest publicly traded cryptocurrency mining companies in the United States that mines bitcoin, filed for bankruptcy on December 20, 2022, saying it was due to falling cryptocurrency prices and rising energy costs.
Overall, the cryptocurrency market has lost more than $2 trillion in 2022, with other cryptocurrencies such as bitcoin dropping below their 2021 highs.
But there are many different currencies in the cryptocurrency market and some of them may be better options than (Bitcoin) Bitcoin as some of them have performed well and have great potential to increase their value significantly in 2023.
But does this mean that the cryptocurrency market can recover in 2023? Will regulators play a bigger role? How will companies react to the current series of crises?
Here are 7 trends that will shape the cryptocurrency market in 2023:
1- Follow a more transparent policy:
Transparency is currently the first requirement in the giant cryptocurrency market and 2022 shows that this is essential, so companies and trading platforms will make their practices more open and transparent so that the public can restore trust in the industry.
Some well-known companies such as: Binance, Coinbase, etc. have started introducing new mechanisms to prove their reserves. After FTX went bankrupt, Binance introduced a mechanism called Proof of Reserve — also known as PoR — in late 2022, which aims to prove depositors and public balances are in compliance with its own custodial work and independent third-party audits. It relies on this mechanism to protect the database from tampering attempts.
Therefore, 2023 promises to be the year of transparency for crypto companies. First ; Each platform must prove what it is doing by declaring its own capital reserves. Some well-known companies can set rules to regulate this issue, and can form an independent group, and impose certain rules on companies to be transparent to users.
2- Increase organizational activities:
The massive losses in the cryptocurrency market in 2022 confirm that the market needs global regulators to act to prevent the risks of losing key protections. By the end of 2021, about three-quarters of investors will have lost the money they invested.
The collapse of the FTX exchange and allegations of criminal fraud against its founder (Sam Bankman-Fred) have caused widespread embarrassment to Congress and regulators. Bankman and other top FTX executives have generously funded both Democratic and Republican campaigns and have always played a key role in trying to create a new regulatory framework that reflects some of the market's priorities. encryption.
While the crisis in the cryptocurrency industry has not shaken traditional financial markets, the authorities have been criticized for failing to crack down on some of the industry's worst abuses.
Regulatory movements in the cryptocurrency market are everywhere now that there are developments in this field in Europe as well and there is no doubt that these regulatory movements will benefit existing companies and regulate the presence of emerging companies in this market because of brio.
3. More business adoption of NFTs:
The global non-fungible tokens (NFT) market is worth about $15.5 billion in 2021 and is expected to reach $122.43 billion by 2028, so these tokens are expected to witness a huge boom in 2023.
NFTs are a type of crypto asset because they allow users to own digital assets such as: a painting, a video, a pair of shoes, a T-shirt, and other assets that you can buy but never wear. NFT is more of a crypto asset than a cryptocurrency, it is based on Ether, and the Ethereum cryptocurrency is used for purchases.
By 2023, expect more real and tangible assets to be converted into crypto tokens, making it more efficient to buy, sell, and trade these assets while reducing the risk of fraud. Examples include: Adidas' line of NFT products, NFT avatars, which have generated nearly $5 million in sales, and Starbucks' NFT-based loyalty program.
4- The next Bitcoin rally:
Many industry experts talked about the historical cycle of bitcoin, which occurs about every 4 years, and bitcoin usually reaches all-time highs during this cycle and then drops sharply.
Anthony Scaramucci, founder of SkyBridge Capital, called 2023 Bitcoin “the year of recovery” and predicted that Bitcoin would trade between $50,000 and $100,000 within two to three years.
Meanwhile, venture capitalist and cryptocurrency veteran Bill Taye said, “The beginning of the bitcoin bull run may still be a year away as the fallout from the FTX crash could last 6 to 9 months.”
5- The growth of web 3.0 platforms:
The global market value of Web 3.0 was approximately $3.2 billion in 2021 and this growth is expected to reach $81 billion by 2030, driven by increased reliance on new technologies based on (blockchain).
And since (blockchain) contributes to the growth of security token (for crypto assets), by 2023 we may see some people using their WEB 3.0 wallets to own physical items.
The question remains, how are crypto assets regulated? Experts believe that the next wave in the world of cryptocurrency could be ownership of physical assets by owning the tokens of those assets, potentially including space for NFT tokens, but with minor changes.
For most people, NFT is nothing more than art, but if they can own land, a house or a car, it will allow them to understand the real benefits of these blockchain technologies.
The decentralization of Web3 and the crypto market will allow users to trade faster without intermediaries, so it is expected that market conditions will turn crypto projects from speculation to more profitable projects and more Web 3-based platforms will appear.
6- The success of the Dash 2 Trade platform in simplifying cryptocurrency trading:
After the FTX debacle, demand for a platform like Dash 2 Trade is at an all-time high as the analytics and insights provided by the platform make cryptocurrency trading easier and enable investors to make more informed decisions.
The platform also helps traders decide which new projects are worth investing in and which are not. The platform, which has been very successful in cryptocurrency trading so far, aims to facilitate forex trading in 2023.
7. Most of the cryptocurrency meme is gone
Meme coins are digital currencies like bitcoin or ethereum, but they are cryptocurrencies that can be associated with pop culture references or internet jokes, and like memes on which they are based, are destined to spread, share, and interesting representations often represent images. .
Shares of a digital meme coin (Shiba Inu) soared 44,540,000% in 2021, and the (Squid Game) coin, named after the popular Korean series (Squid Game), rose again to more than 75,000 in less than a month. From a week % of cases. And it disappears in a short time. Therefore, most of the memcoins are expected to be gone by 2023.