The crypto market experienced a “winter” in 2022 as the prices of most cryptos corrected. With any new asset class, volatility is expected. Irrespective of the mixed bag of events, crypto is here to stay due to the staggering rise of Defi, Smart contract applications, NFTs, play-to-earn games, and other Web 3.0 innovations. Some crypto experts suggest investing in cryptos now because they are available at a discount.
We have highlighted some of the predictions made by crypto experts and analysts on the future of crypto in 2023.
A mixed bag of predictions
Some analysts state that 2023 will be a good year for the crypto market. These experts follow a four-year cycle where they say the crypto market has a bullish first year, followed by a correction in the market next year. The following year will be good, ending the cycle with an excellent year. So using the same logic, 2021 was bullish, 2022 is the correction year, and 2023 will be a good year ending with an excellent 2024.
This prediction bodes well for existing crypto investors and newcomers to the market. Many crypto analysts have studied the performance of the crypto market since its inception and suggest that the market is steadily growing. This overall growth trend has led many to suggest 2023 will be a good year for crypto.
Some crypto analysts speculate that Bitcoin might fall further to $10-12K in the first quarter of 2023. Many crypto miners will restructure or merge as Bitcoin mining has become expensive due to falling prices and high energy bills. Some analysts also speculate that Bitcoin will rise to $30K in the second half of 2023. They say this price rise will be due to lower inflation, a truce in the Russia-Ukraine war, and easing energy bills.
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More regulations will likely be introduced in 2023 as a measure to stabilize crypto. Many governments around the world are working towards standardizing procedures in the crypto space. Crypto is not limited by national borders. Hence a collaborative effort with all nations can make robust frameworks for crypto to thrive.
Growth of Web 3.0
Web3 platforms will continue to grow in 2023. Alex Zhang, the head of Friend with Benefits DAO, predicts that a large market downturn will shift the direction of crypto projects from speculation to utility. He says one of the utility categories will be fun and meaningful experiences. This shift in the crypto scene will translate to more meaningful Web3 social platforms. He also predicts growth in on-chain social graphs, crypto social experiences, and interoperable identity.
While previous predictions rely on past market performance, innovative elements like Web3 might start a crypto bull run purely through its utility applications. Web3 innovations might enable users to trade and transact faster without intermediaries like a bank.
The NFT space will likely grow in 2023. Major brands and artists will leverage its transparency and accessibility features to produce incredible digital assets. Some experts predict NFTs will be the building block needed to create a strong foundation for Web3 applications in 2023.
An overall increase in Adoption
Crypto analysts speculate that there will be wider adoption of Defi applications in 2023. They also speculate that there will be wider adoption of crypto wallets next year. There will be more innovation to improve the ease of use of Defi platforms. More crypto wallets and innovations in Defi will lead to higher Defi adoption in 2023.
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Additionally, crypto companies will work towards unlocking liquidity from Defi NFTs. The intersection of Defi applications and NFTs might be a big trend in 2023.
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While markets move up and down, fundamentally strong cryptos are here to stay and make a change. Bear markets are hard to cope but at the same time, they weed out the businesses which do not have sustainable business models. The ones which survive bear markets will surely thrive.
Many experts believe the crypto market will bounce back from its low. Crypto prices will rise as inflation and the energy crisis ease. More traditional companies will adopt blockchain technology, leading to a requirement for skilled professionals, which could foster further growth in the crypto industry.
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Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Each investor must do his/her own research or seek independent advice if necessary before initiating any transactions in crypto products and NFTs. The views, thoughts, and opinions expressed in the article belong solely to the author, and not to ZebPay or the author’s employer or other groups or individuals. ZebPay shall not be held liable for any acts or omissions, or losses incurred by the investors. ZebPay has not received any compensation in cash or kind for the above article and the article is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information.