The past year went down as one of the hardest in the cryptocurrency industry. So much so, that everyone who has one stake or another in the industry cannot wait to get the past behind them and look to the future. For this reason, the industry is rife with anticipation for 2023 just as experts are already predicting the trends to expect for the same year.
How Will The Crypto Market Perform?
There is a very high expectation for the crypto market to rebound in 2023 and, with just a month in, the signs are looking good. First off, the general public is increasingly being sensitized about the potential of crypto as a store of value. Also, the government is getting more involved in a bid to make the space more secure for investors. Therefore, listed below are the crypto trends to expect for 2023.
- Increased crypto adoption
Despite the poor run that crypto had in 2022, its adoption kept growing. But that was all thanks to the increased awareness about cryptocurrency and its underlying blockchain technology. With crypto prices now picking up, however, it is expected that demand for crypto assets will increase. This means that more individuals and businesses will start using the assets, including first-time investors who may want to know exactly where their money goes. With this, a mass adoption looks to be around the corner. That’s why today there are more and more tools like a crypto calculator that help people to better understand how they should interact with their assets.
- Regulatory clarity
Following the implosion of the FTX exchange in November, global regulators immediately went to work, bringing overall regulatory scrutiny of the crypto market to a record high. Meanwhile, it is worth noting that crypto has always been regulated. However, the issue with past regulations has always bordered on clarity. Crypto firms decry unclear regulatory terms and definitions while regulators often struggle among themselves, on who regulates what.
To this end, much of the groundwork was laid in the last year with several bills being drafted globally to improve in this aspect. Therefore, 2023 is expected to be the year of new beginnings in terms of regulatory clarity and guidance.
- Web 3.0 adoption
Web 3.0 has made huge progress so far, and this is expected to continue in 2023. This explains the suddenly increased attraction that investors are showing toward the space. Although the prevalent bear market may have played a role in the current situation, recent reports suggest that venture capitalists may have lost interest in funding blockchain projects and would rather go for Web 3.0 investments.
- Renewed interests in NFTs
Non-fungible tokens (NFTs) are another aspect of crypto that will break new ground in 2023. Just like every other blockchain-related product, NFTs fell from grace in 2022 for several reasons. The bear market, high inflation, and NFT scams are some of those reasons. But from all indications, the NFT market is set to recover this year. In fact, it may be the first crypto-based market to recover.
This prediction is simply based on the immense growth and adoption that NFTs have seen in recent years. They presently have a wide range of use cases and as such, Verified Market Research projects that the NFT market will hit $231 billion by 2030. From art to music, to gaming, to fashion, and more recently real estate, NFTs will continue to grow in unsuspected areas in the coming years.
- More fallout from FTX
The collapse of FTX exchange in November 2022 triggered a contagion that crept through the entire crypto industry. However, the last is certainly not heard of it. Several companies such as BlockFi and Genesis Global were directly hit by the bankruptcy and have ended up bankrupt as well.
So, as time passes, more firms with serious exposure to the exchange are expected to continue to come to light.