Top Crypto Predictions For 2023
There have been numerous speculations and predictions regarding the trends we should all expect in the crypto industry in 2023, as 2022 can rightfully be referred to as the worst year ever. In fact, last year had the highest number of crises, particularly hacks, totaling more than $3 billion in over 125 hacks.
2022 will always be remembered as a never-to-be-forgotten year in the cryptocurrency industry, as it was plagued by a slew of incidents such as bankruptcies, implosions, leading crypto crashes, and many others that caused the market, investors, traders, and other players to suffer throughout the year. Additionally, Bitcoin (BTC) dropped to a 2-year low after falling more than 60% from its peak of $69,000 in November 2021.
But as the new year gets underway today, 2022 ended on a bit of a cliffhanger, leaving many questions unanswered. Will Bitcoin decline further? Do you think the crypto winter will spread? Will the companies that are currently on the verge of bankruptcy recover? Will lawmakers and regulators scrutinize the sector more quickly? What does all of this mean for regular cryptocurrency users? This article will discuss some top predictions for the global crypto market in 2023.
Main 5 Crypto Predictions For 2023
A Massive Shift to Decentralized Finance (DEFI)
Users’ trust in centralized players in the market has drastically decreased as a result of the sudden failure of numerous centralized crypto exchanges, businesses, and entities in 2022, and they are now once again renewing their confidence and trust in the decentralized finance (DEFI) system.
This trend will persist in 2023 as more people than ever before will be interested in learning more about how the decentralized system functions and how they can easily manage their own assets in their personal crypto wallets without having to rely on a third party whose mistakes could cost them their entire life savings.
This was initially brought on by the detrimental financial effects brought on by the former CEO of the FTX exchange’s misappropriation of millions of users’ funds. As decentralization is one of the fundamental tenets of blockchain technology and is exemplified by the dominant cryptocurrency, Bitcoin (BTC) — as was previously mentioned in some of our previous articles–this will significantly contribute to the growth and long-term success of the overall cryptocurrency market.
Stronger Regulatory Framework
2022 also revealed some of the critical reasons why we need robust and comprehensive regulations guiding project developers and protecting all investors and users from losing their assets unnecessarily. Numerous financial agencies and legislators have already made public announcements about their intentions to pass legislation in 2023 to regulate the cryptocurrency and blockchain sectors.
For instance, the FinTech Task Force of IOSCO published a Crypto-Asset Roadmap for 2022–2023 in July 2022, outlining the objectives and plans for two work streams: cryptocurrency and digital assets, and, on the other hand, decentralized finance (DeFi). The work streams will concentrate on managing crypto and DeFi risks within regulatory frameworks as well as market integrity, investor protection, and financial stability issues.
Also to be noted is the possibility that national authorities will need to regulate and oversee the expanding cryptocurrency, blockchain, and — most importantly — stablecoin markets. In order to promote uniformity and knowledge sharing, they will also need to collaborate and coordinate with one another on a national and international level.
Increased Institutional and Individual Crypto Adoption
Since the launch of Bitcoin in 2009, crypto adoption and usage have been soaring year after year. Several reports show that there were about 1 billion people around the world using cryptocurrencies in 2022, and about 46 million Americans (roughly 22% of the adult population) own a share of Bitcoin. These trends are predicted to continue to rise in 2023.
Similarly, a report by a research company, Business Insider Intelligence, also shows that there would be more than 25 million bitcoin owners at the beginning of 2023, a 16.7% increase from the previous year.
Although 2022 saw a brutal bear market for Bitcoin and the larger crypto ecosystem, the technology is here to stay. Considering the past performance of the cryptocurrency markets and the likelihood that 2023 will be a successful year for virtual currencies, industry experts are optimistic that the adoption of cryptocurrencies will continue through this year. Therefore, it is accurate to say that in 2023, a variety of investors will see more benefits to adopting cryptocurrencies.
NFTs, Gaming, and DAOs’ Growth Continues
Non-fungible tokens (NFTs) and blockchain games saw significant declines in their operations in 2022 due to the crypto winter, although they are still generating new waves across the Web3 ecosystem. These initiatives are here to stay and will keep up with their momentum in 2023, opening new ways of making good use of what the industry has to offer.
Similarly, the shift from conventional corporate structures to decentralized autonomous organizations (DAOs) is gaining momentum as the Web3 movement expands. Companies and entities will also keep employing the DAO, which is simply any type of organization that is created using the principles contained in a smart contract without the interference of a centralized authority.
People are continually exploring ways to completely abandon the current hierarchical organizational structure and embrace another one that protects their interests and gives them an equal opportunity with every other person involved, including the founders.
More Launch of Central Bank Digital Currencies (CBDCs)
Central banks of hundreds of countries around the world are already exploring ways to keep up with the ongoing trends of digital currencies in the digital world–by introducing the digital version of their local currencies usually referred to as the “Central Bank Digital Currencies,” or “CBDC.”
A recent study by the Reserve Bank of India shows that as of July 2022, there were about 105 countries exploring CBDC, a number that covers 95% of the global gross domestic product (GDP). The Bahamian Sand Dollar, introduced in 2020, was the first country to introduce a CBDC, followed by other countries like Nigeria and India.
This trend will also continue in 2023 as other nations, including powerful ones like the United States, are already debating how this digital cash could eventually become a tool for fostering global trade and economies.
Closing Thoughts
Although we are unable to forecast whether there will be a significant increase in cryptocurrency prices in 2023, we believe that most of the above-mentioned developments will help advance the industry in terms of adoption, development, and security. Numerous people and organizations are already aware of the fact that cryptocurrency is the asset required to navigate an increasingly competitive and digitalized financial landscape, offering a decentralized, secure alternative to the fiat system.
If you want to buy, sell and invest in cryptocurrencies in 2023 while also having 100% control over your crypto assets, then Melega Finance is for you. MelegaSwap is a leading automated market maker (AMM) decentralized exchange that provides users with a variety of options to trade and earn free tokens at extraordinarily high-interest rates and low charges. At Melega, nobody manages your funds for you because you manage them directly from your personal wallet while smart contracts transparently take care of every other thing.
Learn More About the Melega Ecosystem
Website: https://melegaswap.finance
Telegram: https://t.me/melegacommunity
Twitter: https://twitter.com/meleganza
Instagram: https://www.instagram.com/melega.finance/
YouTube: Melega Finance Official
DAPP: https://melega.finance/
