One of the most painful years for the crypto community has been the ongoing year. To start, at the time of this article, Bitcoin and Ethereum had lost about 64% (more than 50%) of their value.
The demise of FTX was also seen in the cryptocurrency community. In November 2022, FTX was the topic of the town due to an $8 billion liquidity crisis and Binance falling out of the arrangement to buy the struggling exchange.
Major Cryptocurrency Occurrences in 2022 in Brief:
Let’s take a look at the most significant stuff in 2022 in the behavior of cryptocurrencies:
- More than half of the value of Bitcoin was lost.
- Due to growing management errors, FTX folded, leaving an $8 billion accounting gap.
- Well over 5,000 new cryptos are trading on numerous exchanges and platforms despite the severe crypto winter.
- Sam Bankman-Fried, sometimes known by his initials SBF, made history when he lost almost all of his $16 billion fortune over the course of a single night.
- The market for cryptocurrencies lost over $60 billion as a result of Terra Luna’s 95% value drop.
What the Crypto Sector Can Expect in 2023
We anticipate an adoption rate and a modest recovery of bitcoin prices in 2023 given the turmoil of 2022. Despite the laser-eyed Twitter figures’ constant optimism, it is improbable that Bitcoin will hit $100,000 in 2023.
Will cryptocurrency users reach a tipping point in 2023? Will the price of, most importantly, Bitcoin, but also Ethereum and stablecoins, soar, fall, or stay the same as it was this year?
Will regulatory watchdogs enact new, strict legislation in response to FTX’s abrupt fallout? It is time to outline some potential cryptocurrency trends as we say goodbye to 2022 and welcome 2023.
More Funds Being Invested in Stable Assets, or Stablecoins
Investors seek safety in reliable assets during erratic times. Stable assets, commonly referred to as stablecoins in the cryptocurrency field, are thought to be more durable than volatile cryptocurrencies like Bitcoin and Ethereum.
They are the perfect choice for those wishing to protect their money during volatile periods because of this characteristic.
There Will Be an Increase in the Number of Governments Using Centralized Cryptocurrency
As the digital version of the Bahamian Dollar, the Bahamas will be the first nation to formally test and introduce the Sand Dollar in 2020.
During the first week of January 2022, China, which is taking the lead, tested and introduced the prototype version of the digital Yuan. Currently, 23 large cities provide it, and the government plans to roll it out nationally in the upcoming year. Using the e-CNY app, which is offered in the domestic market on the Google Play and iOS stores, you may purchase and sell digital Yuan.
We anticipate that the Euro, US Dollar, and British Pound will introduce their virtual currencies in 2023.
Supplementary Meme Coins Will Be Released
Dogecoin, a cryptocurrency that was first introduced in 2013 as a meme modeled on something like a Shiba Inu dog image that went popular, has come a very long way to reach its current market valuation of $13.71 billion. With more than 200 meme coins currently in use, this pattern is likely to persist in 2023.
Tamadodge is the latest meme cryptocurrency, and users can either earn it by playing games or buy it with fiat money to use for in-game purchases.
Greater Focus on DeFi
You must have encountered the term “DeFi” more frequently than you anticipated as a crypto investor or researcher. The term “Decentralized Finance”, i.e. DeFi, refers to a different financial and investing environment that uses blockchain technology and cryptocurrencies. The searching tendency for DeFi has increased by more than 5,600% since 2017 to demonstrate this idea.
It is the foundation of cryptocurrencies and the primary driver behind their creation.
Decentralized finance is based on the premise that no one organization controls it and that all transactions take place in a public ledger. DeFi employs “smart contracts” to enable transactions without the involvement of middlemen banks.
This is the polar antithesis of modern centralized financing, where transactions occur over secure ledgers under the total supervision of banks and financial organizations.
Ethereum effectively created the very first crypto with the potential for smart contracts, giving it the first-mover advantage in the sector. As of now, the Ethereum platform is the most popular option for creating smart contracts.
However, DeFi remains in its beginning stages, similar to the early Internet, when chat rooms and vibrant websites ruled the 1990s. The entire premise of the Internet, including contactless banking and the growth of working remotely, did not begin to manifest until the 2000s.
Cryptocurrency Gaming Is Expanding
One of the industries that have grown significantly over the past two years is crypto gaming. By 2027, experts predict that the gaming industry’s value might reach $350 billion, all owing to cryptocurrencies; 48.6% of crypto owners currently say they will eventually utilize their virtual currencies for online betting or gaming.
The blockchain is the main engine powering the development of the crypto gaming industry. The decentralized ledger offers numerous, unrivaled benefits that are essential for delivering a top-notch gaming experience on specialized sites, e.g. Tether casino sites.
The blockchain offers several advantages, but among the most significant are increased safety and security. Both the blockchain and cryptocurrencies are difficult, if not unthinkable, to hack. This indicates that your personal information is secure. Aside from instantaneous processing and transactions, crypto games have many other wonderful benefits. Withdrawals take place instantly, whereas deposits are easily made.
Another factor that draws gamers to crypto games is anonymity. Some people choose to keep their gaming activities private, and the blockchain protects your identity. Playing crypto games has additional benefits, such as mobile accessibility and more bonus and promotion value.
NFTs Might Not See a Comeback
In 2021, NFTs (Non-Fungible Tokens) had been widely used. But in the highly unstable realm of cryptocurrency, things can change very fast.
The first and biggest market for digital collectibles and NFTs is called OpenSea. It experienced the biggest decline in monthly transaction volume, spanning from $4.86 billion in January 2022 to $303 million in October 2022, a staggering 94% decline.
Is the Trading in Digital Collectibles Now Over?
Will the monthly trading volumes ever return to those of early 2022?
While uncertainty is the one constant in the world of cryptocurrencies, we do not anticipate a return of OpenSea’s trading volumes to those of January 2022.
Different experts hold different views. While some consider that the market is extinct, others are optimistic that it may one day revive and reach its former heights. However, it can take a while before the NFTs even start to function like a typical market.
Final Thoughts
Regardless of professional predictions, it is still unclear what cryptocurrencies will alter in value and where we will be in 2023. Cryptocurrencies, on the other hand, are undoubtedly here to stay.
More regulations and the expansion of cryptocurrency exchanges by institutional investors are the only things we can anticipate. In 2023, things can also get very exciting with the opportunity of creating a virtual land, NFTs, and Metaverse. Let’s all get ready for the new year!