It’s no secret that the world of crypto has experienced an immense amount of dynamic change in the past year. From the Terra Luna Crash to the fall of FTX, it was a dramatic year for the crypto ecosystem. However, looking into 2023, it seems like a lot of key developments will take place. In this article, we will examine some of the predictions that are likely to shape the cryptocurrency market in 2023.
Plenty of Regulations
Regulatory bodies are likely to place strict regulations on the crypto industry in 2023 as the market continues to mature and gain mainstream attention. Especially following the collapse of the second-largest crypto exchange, FTX. The exact nature of these regulations is difficult to predict. It is possible that they could range from measures aimed at protecting investors to those that seek to limit the decentralization of certain assets. The crypto community may push back against certain regulations due to their perceived threat to decentralization. This issue is divisive and could lead to significant resistance. Ultimately, 2023 could prove to be a pivotal year for the regulatory landscape of the cryptocurrency market, as both industry participants and regulatory bodies seek to find a balance that allows for innovation to thrive while also protecting consumers.
Layer Twos for Crypto
Layer two projects on Ethereum are expected to gain traction in 2023 due to reduced gas fees for Ethereum-based applications. This trend is likely to continue as more options, zkSync, Polygon’s zkEVM, and Starkware, become available. Accordingly, these projects may attract developers and users away from other blockchain networks, such as Solana, due to increased scalability and efficiency. The adoption of layer two solutions is particularly not limited to Ethereum and may extend to other blockchain platforms.
Web3 Ecosystem will expand and develop
Web3 platforms, which use decentralized protocols and offer utilities beyond financial transactions, are expected to grow in popularity in 2023. These platforms will drive innovation and adoption in the cryptocurrency market as it matures and shifts away from speculation. Alex Zhang, the head of Friends with Benefits DAO, says this growth will be fueled by a shift towards “meaningful, fun, social experiences”. As well as the development of “interoperable identity, on-chain social graphs, and crypto-abstracted social experiences. As Web3 platforms expand and transform, they will become important to the cryptocurrency ecosystem. They could drive mainstream adoption of decentralized technologies.
The continued failure of centralized crypto exchanges
Just like FTX, we will continue to see centralized exchanges facing bankruptcy and/or getting hacked in 2023. Centralized exchanges hold users’ funds in a central location. This makes them vulnerable to a range of threats including cyber attacks, embezzlement, and mismanagement. As such, they have a history of experiencing high-profile failures. Centralized exchanges and their failure serve as a reminder of the importance of decentralized alternatives. As such, we will see a growing interest in decentralized exchanges in 2023 as users seek out more secure alternatives for trading and managing their digital assets.
Rebranding and Recovery of NFTs
Experts predict the market for non-fungible tokens (NFTs) to continue recovering and growing in 2023. NFTs are unique digital assets that are verified on a blockchain. They have gained significant attention in recent years. They represent ownership of a wide range of digital and physical assets. The market for NFTs experienced a downturn in 2022. However, we expect major companies’ adoption of NFTs to help drive their recovery. In addition, we expect the rebranding of NFTs as “digital collectibles,” “skins,” or “avatars” to broaden their appeal and help drive mainstream adoption. As such, we will see a growing interest in NFTs in 2023. Both collectors and companies will seek to take advantage of their unique capabilities.
DAOs and gaming set to drive innovation in 2023
In 2023, we expect the intersection of gaming and decentralized autonomous organizations (DAOs) to continue growing. The integration of blockchain into gaming industry has already led to the development of new revenue streams and business models. We expect this trend to accelerate in the coming year. In particular, we expect use of DAOs to govern in-game economies and assets to become more prevalent. DAOs allow for greater transparency and fairness in these virtual worlds. As such, it is likely that we will see a growing number of games and platforms that utilize DAOs in 2023, as developers seek to take advantage of the unique capabilities of this technology. In addition, the growth of DAOs in the gaming industry is expected to drive broader adoption of this technology and its applications beyond the gaming space.
Integration of AI
The integration of artificial intelligence (AI) into the cryptocurrency market is expected to be a major trend in 2023. As AI technologies, such as machine learning and natural language processing, continue to advance and become more widely adopted, it is likely that we will see their incorporation into various aspects of the cryptocurrency ecosystem. This could include the development of new AI-powered cryptocurrencies, as well as the implementation of AI in areas such as trading, prediction markets, and risk assessment. It is possible that some of these projects utilizing AI may break into the top 100 cryptocurrencies by market capitalization, potentially leading to the emergence of a new class of industry leaders. The impact of AI on the cryptocurrency market will be an area to watch closely in the coming year.
Crypto in 2023
In summary, experts predict the cryptocurrency market to undergo a number of significant changes in 2023. From increased regulation to the adoption of new technologies, the coming year is likely to bring a range of developments that will shape the future of the industry. By staying informed about these and other trends, investors and enthusiasts can make informed decisions about their involvement in the cryptocurrency market.
About Peerplays
We are dedicated to empowering people’s freedom to create greater outcomes, giving them control over how they own and collaborate worldwide. The core foundation for Peerplays success in 2023 relies primarily on the release and promotion of mechanisms incorporating decentralized ID, gamification, and ‘handshake’ like onboarding that is easily accessible to people who use smartphones. At Peerplays, we are on a mission to revolutionize the world of blockchain technology and empower individuals with the freedom to take control of their digital lives. To achieve this ambitious goal, we are constantly on the lookout for the most talented individuals who share our passion for innovation and our commitment to decentralization. If you believe in the transformative potential of blockchain technology and are eager to contribute your skills and expertise to this groundbreaking project, we want to hear from you.
