Forex in this article
• The crypto market hit hard in 2022
• Both optimism and pessimism for 2023
• Web3 and NFTs can grow
Over the past year, crypto investors have been put to the test. Most cryptocurrency prices have dropped by double digits and the FTX bust has seriously shaken confidence in the industry. Crypto fans are now hoping that everything will be better in the new year. “CoinDesk” has put together ten different predictions – from bullish to skeptical – about how the crypto market could proceed in 2023.
1. Struggle for regulation
Cryptocurrencies are usually viewed with suspicion by the government. It is often heard that Bitcoin and Co. promotes money laundering and even terrorist financing. Opinions are divided on the investor side, with some wanting no government intervention, others hoping for a wider acceptance of cryptocurrencies once they are clearly regulated.
So far, there is no clear regulation of the crypto sector, but 2023 may see big movement here: “There will be proposals for strict crypto regulation, and the community will engage in an epic battle against the components that threaten decentralization,” quoted “CoinDesk” Laura Shin, host of the “Unchained” podcast.
2. Growth in Web3 platforms
Friends with Benefits DAO’s Alex Zhang hopes that the current market weakness will cause crypto projects to become less speculative and instead focus more on their utility. One such useful category is “meaningful, enjoyable social experiences.” That’s why he expects “more meaningful Web3 social platforms and protocols”.
Web3 is currently a somewhat vague concept of a decentralized, immutable version of the global network. Web3 is based on blockchain technology, is free of intermediaries and has the same cryptographic verifiability as cryptocurrencies or non-fungible tokens (NFTs). The goal is a decentralized Internet where each user becomes the owner of their data again and retains control over it.
3. Continued market weakness
Cas Piancey, co-host of the “Crypto Critics’ Corner” podcast, was pessimistic about 2023: “You can’t just wish away a credit crunch and bad business partners. We’re going to see more funds close and companies that we don’t want have expected to fluctuate – mainly because the contagion is too large and its extent too difficult to assess.”
4. Global Bitcoin customization
For Alex Gladstein, Chief Strategy Officer of the Human Rights Foundation, “global adaptation is probably the biggest in history” for 2023. At a Bitcoin conference he attended in Ghana, he demonstrated how much was betting on Bitcoin in the Democratic Republic of Congo, Somalia and other conflict zones. “It’s really incredible,” Gladstein said.
5. Departure from the crypto sector
Quite the opposite is the case for well-known Bitcoin bull Peter McCormack. When asked about his forecast for 2023, the host of the “What Bitcoin Did” podcast simply replied: “Real Bedford will win the league”. You must know that McCormack is the owner of this English football club. So while his answer is definitely intended as a joke, there may also be a grain of truth in it, namely that during a crypto winter it might be better to focus on other things.
6. Fashion and Web3
“Fashion will lead Web3’s adoption,” predicts Cathy Hackl, Journey’s chief metaverse officer. “We will continue to see collaborations between Web3 personalities and consumer and luxury brands looking to explore new distribution models and customer touchpoints.”
7. Recovery in NFTs
Jamie Burke expects strong interest in non-fungible tokens: “The continued high-risk appetite for NFT funding in 2022 is a strong indicator that this is one of the sectors that [in 2023] recover first,” said the CEO and founder of Outlier Ventures.
8. Growth of games and DAOs
Alongside this, Burke is also bullish on games and DAOs. He expects that well-known Web3 games that have been in development for a long time will finally be presented in 2023 – either as a full game or at least as better playable demos.
Referring to decentralized autonomous organizations, he noted that the growth of new DAOs has “exponentially accelerated,” with each month in 2022 spawning more new DAOs than all of 2021 combined.
DAOs are decentralized communities where participants are coordinated by a common set of rules. The set of rules for a DAO are defined in the form of smart contracts and are enforced directly on the blockchain.
9. Greater diversification of the market
Haseeb Qureshi expects the market shares on major exchanges to be spread among different market participants. “This makes it impossible for another FTX to happen,” said the Managing Partner at Dragonfly Capital. The insolvency of what was once the world’s largest crypto exchange in November 2022 caused severe turbulence and price drops in the crypto market.
Advice from Sandra Ro, CEO of the Global Blockchain Business Council, could outline how the crypto industry can continue after a difficult 2022: “Reorganize with humility, rebuild with integrity, regain trust and rise again”.
Image sources: tungtaechit / Shutterstock, Wit Olszewski / Shutterstock.com