What 2023 Holds for the Crypto Sector
The crypto market has experienced a tremendous amount of volatility in 2022, from the failure of the FTX exchange to the algorithmic stablecoin terraUSD losing its peg to the U.S. dollar. So, it is difficult to predict what the future holds for the cryptocurrency market. However, in general, cryptocurrencies are expected to continue growing in popularity.
Analytics Insight reports that market analysts predict that Bitcoin could hit $100,000 by the end of 2023.
Crypto predictions can vary widely, but overall, the crypto market is predicted to do well in 2023. That said, investors need to do their due diligence before investing in any digital asset.
Following are some of the key predictions for the crypto industry in 2023:
The Rise of More Blockchain-Based Cryptocurrencies
While blue-chip cryptocurrencies like Bitcoin and Ethereum have been around for a long time, and thus enjoy better credibility, they have little room for growth. They are considered saturated because of their enormous market caps.:
- Dash 2 Trade
- Eye AI
While these cryptocurrencies are exciting investment prospects, investors must remember that new crypto tokens are more prone to incompetent execution, exploits, and rug pulls.
The Continued Growth of Decentralized Finance (DeFi)
DeFi is trying to create products that resemble traditional banking systems without the need for third-party intermediaries. According to Bryan Gross, network steward at crypto platform ICHI, emerging crypto developments such as decentralized finance (DeFi) and decentralized autonomous organizations (DAOs) are “likely to be the highest growth areas of crypto.”
The increase in the number of people with crypto wallets indicates that there is a greater interest in using DeFi applications in the near future.
Higher Blockchain Adoption by Enterprises
Enterprises are rapidly recognizing the potential benefits of using blockchain technology in their operations, resulting in increased investment in this space.
Teams today use over 110 SaaS applications, which is a significant increase from just seven in 2019. For teams to be as productive as possible, they need to integrate various tools and technologies. It is important that deployment be easy and fast as well as customizable and scalable. Thus, by the end of 2023, developers will be able to easily incorporate blockchain into their projects by using specific applications.
According to Research and Markets, the global blockchain market is projected to be worth $19.9 billion by the end of 2023.
Sathvik Vishwanath, co-founder and CEO of cryptocurrency exchange, Unocoin, believes it is difficult to predict exactly how the blockchain market will shape itself in 2023, but it is expected to continue growing as more industries adopt the technology for a variety of use cases.
This faith is already reflected in major moves by various enterprises. For instance, Walmart, a multinational retail corporation, has already implemented blockchain technology to speed up the identification of fruit shipments, from seven days down to just 2.2 seconds.
With clearer regulations like MiCA (Markets in Crypto-Assets Regulation) on the way, enterprises will also have better assurance of the safety, viability, and reliability of crypto assets and blockchain technology. The result will most likely be a spike in the adoption rate of blockchain solutions in enterprise operations.
Our 2023 prediction is that the blockchain will merge with other technologies such as Artificial Intelligence (AI), Internet of Things (IoT), and 5G, among others, to help benefit different industries. These hybrid applications will help create new benefits for enterprises and consumers.
Blockchain Implementation in Government Sectors
In government sectors, the introduction of blockchain technology has gained traction as a potential solution to many longstanding problems. For example, it has been argued that the decentralized nature of blockchain technology can make the government more efficient and transparent, while also providing increased security for public data. As a result, governments are exploring the potential benefits of this technology in various ways.
In 2020, the Bahamas became the first country to officially launch the Sand Dollar, the digital equivalent of its Bahamian Dollar. This move set the stage for other countries to create their own digital currencies. The Chinese government followed suit in January 2022, announcing that they had launched the pilot version of the digital Yuan, which is available in 23 major cities so far. The Chinese government is planning a nationwide rollout in the coming year.
In 2023, the US Dollar, GBP, and Euro are also expected to launch their official digital currencies.
With the increased adoption of blockchain in government sectors, we can also expect to see the rapid expansion of its applications in other areas of life in 2023.
Upcoming Regulations in the Crypto Space
The ecosystem of digital assets has seen a lot of breakdowns in 2022, so building up and restructuring will require regulatory collaboration with authorities worldwide. Regulatory bodies have been working on creating a framework that can help regulate digital assets as securities, assets, currencies or commodities. Some countries are considering legalizing cryptocurrencies while others are tightening control over crypto trading.
Each country is dabbling with taxation and crypto regulations. Institutions like the OECD (Organization for Economic Co-operation and Development) and the FATF (Financial Action Task Force) have offered solid crypto compliance suggestions for countries in the global banking system, which will take shape in 2023.
The US Securities and Exchange Commission (SEC) has also increased scrutiny of ICOs and cryptocurrencies, which will make it challenging for new projects to launch tokens in 2023.
Regulations that encourage participation in the crypto ecosystem and maintain users’ privacy are sure to help fix and boost the ecosystem. As crypto companies adjust to the new rules and regulations in 2023, we may see some price fluctuations, but the outcomes are expected to be positive.
The Future of AAA NFT Games in 2023
2022 has been a stellar year for AAA games, with major releases including Battle of Guardians, RaceFI, Rainmaker, and Polygonum. In 2023, the United States AAA games market value is expected to grow exponentially. Changes in the US AAA gaming market have a direct effect on the development trend of AAA games worldwide. Europe may also play an impactful role in the global AAA gaming market from 2023-2029. AAA games are also expected to integrate crypto elements in their applications.
In 2022, a highly anticipated AAA NFT game called Illuvium was built on Ethereum, leveraging the zero-fee layer-two transfer of the Immutable X blockchain. Guardians of Guilds was also built to run on Ethereum and scale on ImmutableX. As crypto and gaming technologies like AR and VR keep advancing, more and more AAA games will be built using blockchain technology in 2023.
Games like Capcom and Konami have started selling NFTs based on Street Fighter and Castlevania, respectively. In 2023, at least one more big company will try to finally offer NFTs and other crypto elements with a top IP in an AAA game.
Although there is intense competition in the AAA gaming space, investors are still optimistic about NFT elements in these games, which are attracting new investments in 2023.
The Growing Potential for Crypto Gambling
Casinos and sportsbooks have been eager to embrace new platforms and technology to keep up with the ever-changing landscape of online gambling.
Cryptocurrency gaming is no exception. New casinos and sportsbooks that take Bitcoin and other digital currencies have been popping up over the last several years.
Crypto gaming has a lot of benefits over traditional gambling methods. The money and game control are spread out among several different entities. This makes the company more resistant to government control while opening up the prospect of sharing earnings with users.
Most Bitcoin casinos are now introducing more and more games with improved features. Ethereum gambling is also gaining traction. A few casinos and sportsbooks have started accepting ETH as gambling currency, opening up opportunities for more players to enter the betting and gambling arena.
When it comes to crypto casinos, the experience nowadays is on par with what you would find at a traditional online casino. As the age of the metaverse rises, casinos will also be able to offer more realistic gaming and gambling experiences with players designing custom virtual worlds and betting in a fully decentralized space.
The increase in crypto regulation in 2023 may hinder the growth of crypto gambling, but it will still be a popular pastime for many.
The crypto space is evolving rapidly, with new currencies, improved technology, and the growing integration of blockchain in enterprise solutions, games, and governance. These changes are sure to rock the boat, but the crypto industry has always been resilient. The market capitalization of the crypto industry hit its lowest point of $788.93 billion on 30th December 2022 but bounced back to $807.17 billion by 2nd January 2023. In fact, the bear market spell in the crypto industry may even draw to a close in the early months of 2023!
As crypto gains further adoption in various domains, Web3 seems to be ushering in the new digital age. Games and enterprises have already started dabbling with the metaverse and opening their doors to tokenized assets and crypto in-app payments. We predict that most industries will try adopting blockchain technology and adding NFTs or other crypto elements to their offerings. Recent integrations with grocery apps, shopping experiences, gambling options, and more have proven that blockchain technology is on its way to increased adoption in 2023.
Following are some of our key predictions for the crypto space in 2023:
- Bitcoin will continue to be popular and reach new heights
- Ethereum will also continue to grow in popularity. Its smart contracts functionality could revolutionize many industries, from finance to healthcare
- Other cryptocurrencies may see even greater success than currently predicted. This could include currencies like NEO or Dash, which offer unique features not found elsewhere in the market
- Crypto will be highly volatile, with Bitcoin prices ranging from $10,000 to $20,000 per coin
- More businesses will start using blockchain technology to manage their transactions and interact with customers
- Many new decentralized applications (dApps) will be created using blockchain technology
- Cryptocurrencies will become more mainstream and accepted as a form of payment worldwide
- Cryptocurrency exchanges will become regulated, secure, and user-friendly
- New Initial Coin Offerings (ICOs) will be launched to raise money for blockchain projects
- Games and gambling options with integrated crypto elements are on the rise, opening the Web3 domain to new investors
- Governments will also continue looking into the possibility of creating official digital currencies and using blockchain technology to manage data and governance more efficiently
With major developments in the pipeline, the crypto industry is positioned for great success in 2023. That said, anything can (and probably will) happen in the crypto world – so stay tuned for the latest crypto news and updates!
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