Top 10 Promising Cryptocurrency Trends to Look Out for in 2023 | by CoinDhan | Coinmonks | May, 2023
Meme fest frenzy, NFTs. Metaverse and DeFi shall drive the momentum in the crypto market moving forward in 2023. So as the euphoria is set to rally yet again as per market dynamics due to the loss of trust in TradFi, we must be prepared for some of the trends that shall shape 2023. So with no further ado, let’s keep a close look at some of them;
People’s perception of TradFi is changing post collapse of key banks in the last couple of months. With such developments, it is not surprising if the inclination shifts towards crypto. In 2023, crypto awareness reached 69%, which has increased in continuity when you look at 2022 and 2021. Hence the demand for regulation shouldn’t be left like an elephant in the room. At the backdrop of events like FTX, Terra Luna and Celsius, we might undoubtedly witness a new spike in crypto regulations and the beginning of that has already started in Washington DC where lawmakers are thinking about regulating the sector.
BTC is poised to remain stuck to a specific price point until and unless we see significant reduction in inflation. At the time of writing, the US inflation is hanging around 5% and the FED shall not be looking for a soft landing until and unless, we see inflation coming back to 2%, which is their prime target. Hence much of 2023 shall see BTCs price either consolidating at a specific price point or hitting new lows for 2023.
The Internet of Ownership shall be the new narrative for 2023. So far, we have already seen that censorship of media, bankruns and data abuses have caused serious concerns for users. To further aggravate the situation, businesses no longer trust centralized solution providers because they are close allies of the government. Hence we can very much see the imminent rise of Web 3 dominating the digital space.
We might see a power-sum game in the digital space where CBDCs might be looking forward to usurping cryptocurrencies. Developments have been underway and the majority of the economies might join hands to counter the rise of crypto. Though it is speculative, it couldn’t be ruled out at all.
With the introduction of ERC-6551, we might see some very strong momentum returning to the NFT market. Why? Because for the first time, NFTs will be used as a value denominator to support necessary synthetic assets. For example, you can use your NFT of BAYC to mint an adequate amount of ERC 20 standard tokens using the ERC-6551 stands and interact with different ecosystems. Such a trade-off will make NFTs mainstream and ready for adoption.
The much awaited crypto ETFs might end up as a reality after assessing the degree of adoption. Australia has already weighed in favor of accepting BTC ETFs. Cosmos Asset Management would be launching Cosmos Purpose BTC ETF by investing $1.6 billion which shall set-up the narrative for others to follow. It could be taken as a litmus test based on which other ETFs in Canada, the US, Europe and Asia shall roll out.
Metaverse’s rise shall allow more brands to embrace crypto. Some of them like Disney, Microsoft, Google, and Apple have already embraced the Metaverse and in the coming months, we shall see more brands joining this trend by launching their stores and products in the metaverse.
Shift to adoption and deployment in business would call for scalability which shall be answered by the L2 and roll-ups. We have already seen the launch of ZK-EVM and it would set-up the new narrative for scalability, security and decentralization. The blockchain trilemma is on the path of getting solved driving further adoption ahead.
The erstwhile narrative of crypto that it consumes a lot of energy shall be changing when energy efficient consensus mechanism becomes the new normal for driving crypto adoption. We have already seen Ethereum, the second largest blockchain pivoting to PoS from PoW and other blockchains are also looking for energy efficient ways to keep the ecosystem safe, secure and sustainable.
It might not be an understatement but the way ZK-EVMs have emerged and ETH 2.0 roadmaps are getting accomplished at lightning pace, we might see the shading coming earlier than expected. With that happening, we might very well see ETH reaching its true potential to outsmart even BTC. However it is just speculative.
Disclaimer: These are just trends which are suggested based on research and it shouldn’t be taken as investment advice. It is suggested to DYOR before investing in crypto.
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