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In 2022, 16% of American adults said they had traded or used cryptocurrencies to some extent. 2023 is sure to draw even more Americans into the world of cryptocurrency investing.

If you’re thinking of buying crypto in the new year, you’ll want to know more about upcoming cryptocurrency trends. Staying ahead can provide a big advantage when it comes to investing in crypto.

The following guide will cover 12 upcoming trends for 2023 to help you develop the best cryptocurrency strategy.

1. New Meme Parts

As of 2022, there are over 200 meme coins available to crypto investors. Many thought meme coins were just a fad, but expect there will be even more coming into circulation in 2023.

If you don’t already know, meme plays refer to popular plays that are going viral on the internet. They are usually lightly comedic in nature and related to a meme. Be aware that most coins are extremely volatile and have little or no intrinsic value.

That being said, the Dogecoin meme coin has recorded a market cap of over $11 billion since its inception in 2013. Only time will tell if another meme coin can skyrocket in 2023, but many newcomers are likely to try.

2. Requirement for reliability and speed

Investors generally look for safer assets in bear markets during volatile times. For the crypto world, that usually means either bitcoins or stablecoins. BTC has always recovered from crashes and shown excellent resilience.

Bitcoin will pull the weight and help the market rally in 2023 and it has done so time and time again. Sophisticated investors might also turn to Ether due to its powerful presence in the DeFi space. Expect currencies with faster transaction speeds to also be in high demand. The XRP against bitcoin speed comparisons could be a hot topic as Ripple attempts a comeback.

3. Involvement in the Metaverse

Metaverses currently don’t have a large social base to stand on, but that could change in 2023. Expect several metaverse crypto projects to start gaining attention in the new year. As more people join the metaverse, more investors will take notice.

The metaverse allows players to go to concerts, casinos, and other social events to interact with others. Gamers can create their own social experiences without any understanding of coding and get paid for it.

For example, Metacade plans to be a fully decentralized metaverse arcade. It will offer several Play to Earn games designed and selected by the Metacade community. Projects like Decentraland aim to allow gamers to sell decentralized parcels of digital land.

4. A defining year for NFTs

NFTs were buzzing throughout 2021, but things got worse very quickly in 2022. Opensea, the world’s largest NFT and digital collectibles market, has seen high volatility.

Opensea reported its biggest monthly drop in trading in January 2022, a whopping 94% decline. The decline was so shocking that analysts wondered if it marked the death of digital collectibles.

NFT volume may recover in 2023, but it’s very unlikely to hit its 2022 peak. That’s not to say they’ll never fully recover, just not in a single year.

5. More regulations

Expect more crypto regulations to emerge in 2023 globally. The focus of lawmakers around the world will be to establish new laws and guidelines to protect crypto investors. This added protection might be enough to attract many new investors to crypto.

Stricter regulation should help deter cybercriminals and reduce fraud. However, different agencies may not have jurisdiction over everything they want, which makes the process slightly complicated.

President Biden plans for the IRS to closely monitor the crypto activity of US citizens and ensure that they file their taxes. This will make it much easier for investors to report crypto losses as well.

It is predicted that crypto taxation in 2023 could generate $5 billion in revenue. Moreover, it is expected to generate $11 billion over the next 10 years.

Not all investors see the addition of crypto regulations as a good thing, and it could affect prices as announcements are made. But the majority of experts agree that regulation is a positive factor for the long-term success of the industry.

6. Crypto ETFs

There is a good chance that we will see more crypto ETF approvals in 2023. In 2021, the very first Bitcoin ETF arrived on the NYSE. The development was a breakthrough and provided investors with a traditional way to invest in cryptocurrencies.

The Bitcoin ETF named BITO allows investors to participate in the crypto market directly from conventional investment brokers. Investors don’t even need to create new accounts, they can use existing accounts on platforms like Vanguard or Fidelity.

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It is important to note that some experts are not totally sold on the BITO ETF. This is because it is only tied to BTC and it can hold futures contracts instead of BTC itself.

Experts claim that even though bitcoin futures follow general trends in real crypto, they still may not follow the price of bitcoin directly. So, investors may want to keep waiting for an ETF that holds Bitcoin.

2023 could be the year an ETF will appear that contains actual Bitcoin, so keep your eyes peeled. However, expect the ETF to be risky and volatile, just like the crypto it holds.

7. Web 3.0 is causing a stir

Expect the 3rd version of the Internet called Web 3.0 to gain traction in 2023. It will provide a lasting answer for those who want to run their websites without using a big company’s server or paying high fees.

Web 3.0 will allow users to personalize the Internet and avoid point failures. This means that a site can crash and other activities will not be affected.

The emergence of Web 3.0 could also help boost cryptocurrencies like Ethereum and Livepeer. Basically all cryptos that are connected to the 3rd version of the internet in some way.

8. Additional Business Features

Giant brands such as Google, Disney, Microsoft and Google will continue to explore cryptocurrencies and metaverses in 2023. They will also pay close attention to dynamic use cases and how cryptocurrencies fit together to NFTs and metaverses.

Currently, Microsoft is creating an environment for employees to engage with each other more effectively, wherever they are. The project called Virtual Office uses blockchain technology and is expected to bring more versatility to business transactions.

Investors are watching closely to see how much corporate interest could increase next year. This could create many new use cases for different crypto services and products.

9. Crypto Goes Green

It is no secret that cryptocurrencies have so far had a detrimental influence on the environment. For example, carbon emissions from bitcoin mining have caused a lot of concern in recent years. It takes a ton of energy to power BTC’s proof-of-work method.

Fortunately, new blockchain networks hope to provide more environmentally friendly practices in 2023. Expect the crypto sphere to start embracing more ways to use green energy instead of fossil fuels in the future. coming.

10. L2 Smart Contracts

Experts predict an increase in the popularity of layer 2 smart contracts throughout 2023. Currently the two biggest cryptos are Bitcoin and Ethereum and they are both layer 1 cryptocurrencies. So if layer 2 continues to gain momentum, it could really upset the market.

Layer 1 blockchain networks offer no scalability, which L2 smart contracts hope to improve. The ability of cryptocurrencies to have infinite scalability is crucial for digital currencies to achieve mainstream success.

11. Ethereum 2.0 makes a statement

Expect Ethereum to fully transition from proof-of-work to proof-of-stake in 2023. The transition will save a substantial amount of energy when it changes its validation process.

Ethereum 2.0 is also expected to reduce circulating supply by adding EIP 1559. This means that the price of ETH could rise due to scarcity.

ETH upgrades should also improve transaction speed and scalability. Anyone with basic computing power will also be able to run a Validator Node.

12. Cryptocurrencies and war

Digital currencies played a role in Russia’s invasion of Ukraine for both countries in 2022. For example, Russia used crypto to fight sanctions and prevent limitations.

On the other hand, Ukraine has accepted crypto donations to help in its efforts. Expect more individuals and organizations to support Ukraine via crypto donations as the war continues.

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Follow cryptocurrency trends

Now you know 12 cryptocurrency trends you should follow in 2023 to help you invest. Although the wild world of crypto is hard to predict, there are certainly some great clues about its direction.

From meme coins to facilitating wars, 2023 is set to be another exciting year for digital currencies. Check out the crypto category of our site for more detailed information and helpful tips.

Crypto News Flash does not endorse and is not responsible for the content, accuracy, quality, advertising, products or other materials on this page. Readers should do their own research before taking any action related to cryptocurrencies. Crypto News Flash is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned.

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