Its been around 15 years since the first cryptocurrency and blockchain network were introduced, and to say that it has been a wild ride ever since would be an understatement. Since its inception, cryptocurrency has been a highly volatile market with whopping highs and slashing lows. People who have invested in cryptocurrency have gone from rags to riches and riches to rags. However, the majority of investors fall within the former category.
Since the pandemic, the cryptocurrency market has flourished, reaching record highs in the last quarter of 2021. However, it has since been steadily plummeting, and most currencies have significantly lost the gains made in the pandemic. 2022 was not a good year, with Bitcoin and Ethereum closing the year down by over 60%. Considering the rollercoaster the crypto market has been on since the start of the decade, people are apprehensive about what surprises this year holds.
We have put together some crypto predictions you should watch out for in 2023!
- Web3 Developer Tool Stack Expansion
In 2023, the demand for developer tools is set to rise alongside the expansion of crypto and blockchain. This surge is a crucial aspect of automating redundant elements of web3 development and a key prediction for the future of cryptocurrency. The number of developers almost tripled in 2022 compared to 2021. Additionally, verified monthly smart contracts increased nearly 2.6 times in 2022.
The increasing number of developers in the crypto and web3 ecosystem has validated predictions for the future of cryptocurrency, underscoring the need for advanced developer tooling.
Composable software, particularly cross-chain tooling, is a crucial technology for web3 development. It allows projects to be deployed on different blockchain networks, making cross-chain tooling more essential. The growing number of cryptocurrency use cases highlights the importance of innovative developer tooling for 2023. Therefore, businesses should hire tezos developers to stay ahead of the curve and ensure their technology stack aligns with the latest advancements in the ecosystem.
Tezos is a decentralized blockchain platform with a unique self-amending mechanism and supports smart contracts, allowing developers to create decentralized applications (Dapps) on its foundation.
- NFT Market Will Continue to Grow
This decade is gaining recognition for many things, not the least of which are NFTs or Non-Fungible Tokens, which are unique digital identifiers traded on a blockchain. The most popular NFTs are artwork, but they can be games, collectibles, comics, and more. The first two months of 2023 have seen the NFT market experience significant growth, and the rest of the year is expected to follow suit. Hence, it a great time to step into the NFT market.
- The Year of Web3
Aptly named, Web3 Technology can be described as the new, improved Internet 3.0. Using open-source software and blockchain for development, Web3 aims to ‘break the wheel’ by taking the power monopoly from large tech corporations and putting it in the hands of Internet users. With a decentralized system promoting control and ownership over data and assets, Web3 is no less than a revolution. In 2023, it is expected that Web3 will gain a lot of traction and become one of the defining features of the year.
- Second Generation Overtake
While Bitcoin is the pioneer cryptocurrency and has been at the top of the list since the start, it is slowly being overtaken by second-generation cryptos. For instance, Ethereum has been a strong competitor since the rise of NFTs, as the Ethereum blockchain is popular for NFT development. Further, Ethereum’s proof-of-stake (PoS) model is much easier than Bitcoin’s proof-of-work model. For these reasons, it has been predicted that 2023 will see Ethereum and other new cryptocurrencies gaining on Bitcoin, making it the right time to invest in them.
- Right Time to Invest
At the start of the year, crypto trading prices were considerably low and are expected to remain so until the end of the first quarter. Therefore, experts say this is the perfect time to invest long-term. If you’re ready to make an investment and leave it to grow for a few years, there’s no better time than now. Even if you don’t have a significant amount for investment, you can focus on new cryptocurrencies in the Top 100, such as Filecoin or Tezos.
- Regulatory Battles will Ensue
A big concern for governments and financial institutions regarding cryptocurrency is the decentralization and lack of regulation. In 2023, government authorities and regulators are expected to crack down on the crypto market and propose stringent rules to govern crypto. It is likely to receive a lot of backlash and it is expected that a fierce regulatory battle will take place in 2023. While clear regulations will benefit the crypto market, and investors will be more comfortable putting in their money, reaching a mutually acceptable middle ground will be quite the challenge.
- Decentralized Finance Continues to Grow
Decentralized finance (DeFi) vs. centralized finance (CeFi) is the power struggle of the decade. However, stakeholders of CeFi will remain disappointed in 2023 as experts predict DeFi will continue to grow rapidly. Remember that cryptocurrency was introduced as a solution to the many, many problems of CeFi. Finally, as people’s skepticism is dying down, DeFi is becoming popular among individuals and businesses as an investment and a regular payment option. We are expected to see crypto finally getting its status as a universally recognized payment option this year.
- Death of Meme Coins
We’ve all heard of Dogecoin, which is one of the most popular cryptocurrencies. However, few people know that Dogecoin is a meme coin that started as a joke and was used to tip content creators on platforms like Reddit. However, the trend caught so much traction that Dogecoin grew into a multi-billion dollar asset. Since then, many meme coins have appeared in the crypto market, with some being extremely successful. However, one of the top crypto predictions for 2023 is that the meme coin popularity will finally die down. Therefore, be mindful before investing in the fad this year.
For the better part of two decades, we’ve been hearing about how crypto is the future. While many people are still sceptical of crypto, it is about time we accept that it will be a big part of our lives in the coming years, and the sooner we adapt and adjust, the better off we will be. By learning about crypto right now and making suitable investments and changes in your life, you can set yourself up for long-term success.
After all, you don’t want to sit around 50 years from now telling your grandchildren how you could have been a billionaire if you’d joined the crypto game in the 2020s now, do you?