Over the past decade, the crypto market has recorded great changes. And 2022 was a year where crypto traders and investors experienced their worst nightmares while recording a decline in their crypto wallets. But the crypto world is too rich and volatile for things to remain as they were in the previous year.
As a result, we must take a look at predictions for the crypto market in 2023 to at least have an idea of what the year holds. Right now, the world of digital assets seems to hold much promise in 2023, but let’s look at other trends to expect. Read up.
Bitcoin Price May Hit $30,000
According to Matthew Sigel, head of Digital Assets Research at Van Eck, despite Bitcoin’s losses in 2022, this cryptocurrency will surely bounce back in 2023. And with this bounce back, signs point out that it just may hit $30,000.
Although not everyone shares this sentiment, Sigel claims to have his reasons. One major reason he gave for this is the high chance of a recession happening on a global scale. If this is the case, the Federal Reserve would put a halt on raising rates while money printing deficits continue.
Brazil Would Become More Crypto-friendly
With the current increase in youth population and inflation, South America has recorded a significant increase in crypto adoption. And at the forefront of this stablecoin adoption spearheading it is Brazil. Due to this fast-growing trend, several private institutions have requested a more favorable regulatory environment.
Moreover, the largest bank in the country, ItaúUnibanco has plans to convert conventional financial products into tokens. And with this in mind, Sigel believes Brazil may be the first country to adopt sovereign debt tokenization.
Twitter May Develop Better On Crypto Payments In Its Functionality
Sigel also theorizes that there are chances that in 2023, Twitter will switch up its payment process. As of now, this social media app still has limitations based on P2P tipping that makes the user experience poor.
But Sigel says that this may change as he expects Elon Musk to implement payment functionalities quite similar to WeChat Pay. This would then make it possible for users to pay merchants directly for their services. The hope is that this developed payment method will incorporate more crypto assets like Dogecoin, Ethereum, etc.
Web 3.0 Experiences More Traffic
Web 3.0 is the next big thing that has been making waves in recent times. In simple terms, the plan is for this third version of the internet to allow people to fund their websites without having to pay commission fees to other institutions that own servers. Thus, analysts say to watch out for Web 3.0 in 2023.
With Web 3.0, it becomes easier to personalize the internet and avoid the occurrence of a single-point failure. In addition, this will have a positive impact on Ethereum and other digital coins that are linked to Web 3.0.
Continued Growth Of The NFT Market
Non-fungible tokens or NFTs have experienced stupendous growth in the past couple of years and predictions show that this could be the case in 2023. These NFTs provide easier access to decentralized funding options for artists and creators to share their content. And as such, they have more freedom in financing their creations.
Because of this, NFTs are sure to experience increased popularity among artists and creators alike as the year progresses. Further analysis also shows that the crypto market may record more increases in the NFT market valuation.
Ethereum Will Allow Withdrawals From The Beacon Chain
For those who don’t know, the beacon chain is the pre-merge name of the blockchain Ethereum plans to adopt. This Beacon Chain was created to confirm that the proof-of-stake logic was good for the go-ahead and not only good on paper before including it on the Ether Mainnet. So this way, Ethereum 2.0 is one step closer to reaching its full potential.
Ever since the merger in September 2022, the Ethereum Mainnet has incorporated the Beacon Chain. And this gave birth to a singular blockchain with a proof-of-stake consensus mechanism. However, because withdrawals are yet to be enabled, it makes the potential adoption a little bit difficult.
In the year 2023, however, it is only right to expect that payouts become enabled. And this could turn out to be the morale boost stakers need to commit more capital to the chain.
In general, there’s a lot of speculation going on about the crypto market, but it remains to be seen. It is a new investment so definite predictions cannot be made yet which is why keeping an eye out for trends is important. And while the future is not certain, we can only hope that the trends remain positive.
Mustafa Al Mahmud is the Founder of Gizmo Concept and also a professional Blogger, SEO Professional as well as Entrepreneur. He loves to travel and enjoy his free moment with family members and friends.