Crypto Predictions for 2023: The Year Ahead

Crypto Predictions for 2023: What to Expect from the Market.
| Cryptopress
Last updated: February 28, 2023

By CryptoPress

The world of cryptocurrencies is always changing, and 2023 should bring more changes and new things. One thing that has become increasingly clear is that crypto narratives matter. The future of the crypto market will depend a lot on how stories about regulation, adoption, and integration with real-world assets are told, among other narratives. 

As we look to the future, it’s important to think about how regulation might affect the industry and how cryptocurrencies can provide real returns and become a more common way to pay for real-world assets. Also, the rise of stablecoins and liquidity-staking derivatives (LSDs) could have a big effect on the market and open up new ways to invest in cryptocurrencies and find uses for them.

We have composed this list with the top predictions for the world and the crypto market, which are deeply related to the main narratives that may drive the industry this year. 

The complete list of Crypto Predictions for 2023:

1. Crypto Climb or Crash

In 2022, cryptocurrency saw several falls, reaching a high of $69,000 in November before dropping below $50,000. Despite the ups and downs, 2022 was still a bullish year for the crypto market. There are predictions that 2023 will be even better and the bearish market will come to an end.

2. Global Adoption of Crypto

According to the founder of the Digital Assets Council, Ric Edelman, an estimated 500 million people in the world will own Bitcoin by 2023. The crypto craze is gaining popularity, and more and more people are becoming aware of its benefits. Bitcoin has a four-year cycle, with its performance affecting the cryptocurrency market. There have been several ups and downs, but they always recover after a tumultuous period.

3. First Spot Bitcoin ETF Could Get Approved

Investors in cryptocurrencies think that the first Bitcoin ETF will be approved in the US in 2023. This will give investors direct exposure to the cryptocurrency itself. Exchange-traded funds, or ETFs, are pools of assets related to bitcoin that are traded as ETFs on traditional stock exchanges. The SEC allowed ProShares to launch a Bitcoin Strategy ETF last year, but now the crypto market is mature and large enough to support a spot ETF.

4. DAOs and Gaming Will Continue to Grow

Analysts predict that crypto will be the future of gaming. With blockchain technology, non-fungible tokens (NFTs) can have real-world value, making the crypto gaming industry worth billions of dollars. Notable titles like Ember Sword, Star Atlas, and Bug Time are in development and expected to be released in 2023. The bear market in the current crypto industry may slow down the growth of decentralized autonomous organizations (DAOs), but it will not stop it.

5. The Battle Over Regulations

In 2023, regulations are likely to be a major issue, and disagreements about them are likely to reach a peak. There will be plans for strict crypto regulations, and the fight for decentralization will be an epic battle for the community. Regulators may also be interested in stablecoins, tokens whose value is tied to an asset’s price. 

The world’s largest stablecoin will be controversial over whether it has enough assets to justify its value being tied to the dollar. The crypto market is always hard to predict, but in 2023, cryptocurrencies are likely to grow even more and be used all over the world. 

The first Bitcoin ETF in the US could get approved, and the crypto gaming industry and DAOs will continue to grow. Regulations will also be a big deal, and the community will have to fight over whether or not to decentralize.

6. Crypto Space Regrouping 

In 2023, the crypto industry is expected to get back on its feet after a rough year in 2022. Those who have managed to survive the turbulence will be ready for a big push heading into 2024, as the market looks to return to significant gains in the years ahead.

7. Ether Will Outperform Bitcoin Again

Ethereum outperformed Bitcoin in 2021, gaining 418 percent compared to 66 percent for Bitcoin. Analysts believe Ethereum will continue to do well because of the surge in NFT sales volumes, as most of these tokens still run on the Ethereum blockchain.

8. Some Meme Coins Will Disappear

In 2022, some meme coins experienced tremendous growth but ultimately disappeared soon after. A prime example of this is the Shiba Inu spinoff Dogecoin and Squid, a coin named after the television drama “Squid Game,” which jumped more than 75,000 percent in less than a week. Investors should be cautious of these types of coins in 2023, as some may not be able to sustain their growth. Even though these quick price increases can be exciting for investors, they are often unsustainable and not based on any real value. Due to the uncertain nature of these meme coins, investors should do their research and be careful when investing in these types of assets.

9. Web3 Will Become the Next Big Thing

Some of the predictions for 2023 rely on the previous performance of the market, but there are also innovative developments like Web3 and the decentralization of the crypto market that could drive even bigger growth than what many experts have predicted. This will allow users to trade much faster and without intermediaries like banks or governments, which will have a significant impact on the crypto market. Keep an eye on these developments, as they could be the next big thing in the crypto world.

10. Contagion Isn’t Over

According to Cas Piancey, co-host of the “Crypto Critics’ Corner” podcast, the contagion in the crypto market isn’t close to being over. He thinks that companies, banks, and funds are trying very hard for the market to forget about the FTX and Alameda collapses or only focus on their wrongdoing. However, he says that you can’t wish away a credit crunch and exposure to bad counterparties. So, he thinks that funds will close and companies will fail, which we didn’t expect, mostly because the spread is too big and hard for us all to measure.

11. NFTs Recover

Jamie Burke, CEO of Outlier Ventures, says that the fact that NFT funding is still willing to take on a lot of risk in 2022 is a strong sign that it will be one of the first sectors to recover in 2023. Starbucks and Disney, two Web2 and Web3 brands, have already started investing in NFTs, and this is likely to continue in 2023. Burke says that brands will continue to flock to NFTs, making it a sector to watch in 2023.

12. Gaming and DAOs Continue to Grow

The rise of gaming and Decentralized Autonomous Organizations (DAOs) in the early 21st century has been nothing short of revolutionary, and all these developments will continue to shape the gaming and blockchain landscapes in the years to come.

Prominent Web3 game titles that have been in development for some time, such as Big Time, Star Atlas, and Ember Sword, will finally see the light of day in 2023, either as full-fledged games or more playable demos. Also, the number of new decentralized autonomous organizations (DAOs) is growing at an exponential rate, with more DAOs being created each month in 2022 than in all of 2021.

This growth of games and DAOs represents an exciting time for the blockchain gaming industry, as projects that were once in the pre-alpha stage of development can finally be released to the public.

13. Large Exchanges Distance Themselves From Other Players

In the past few years, it has become more common for large exchanges to move away from other players in the market. This will lead to a few big players like Coinbase, Binance, and Uniswap rising to the top.

Haseeb Qureshi, managing partner at Dragonfly Capital, thinks that custody, brokerage, and exchange/price discovery will be split up among different players, just like they are in traditional finance. This makes it impossible for another FTX-like incident to happen. Qureshi also believes that when trust is low, incumbents will consolidate, and Coinbase, Binance, and Uniswap will likely gain market share as people are less likely to trust smaller and weaker players. He says that network effects will get stronger.

14. Another Major Cryptocurrency Exchange Will Fail

The digital currency space is volatile, and the year 2023 will not be any different. One prediction for the coming year is that another major cryptocurrency exchange will fail, following the recent bankruptcy of FTX. By trading volume, FTX was one of the largest digital currency exchanges. In November 2022, it filed for bankruptcy. Even though it was one of the biggest digital currency exchanges, it couldn’t handle the financial stress and had to ask for $9 billion to keep from going bankrupt.

Even though Coinbase Global is a publicly traded company and is audited regularly, it has been nearly impossible to show that the reserves for digital currency exchanges are enough. This raises a major red flag in the industry and makes it more likely that another major cryptocurrency exchange will fail.

15. El Salvador Forced To Give Up Bitcoin

El Salvador was the first country to make bitcoin legal and require businesses to accept it as money. This happened in September 2021. Some say the project failed, with just 24.4% of El Salvadorans polled using bitcoin to pay in 2022. Two-thirds also think the Bitcoin deployment failed.

Because the country insisted on using public money to buy Bitcoin, the International Monetary Fund wouldn’t lend it $1.3 billion, and other lenders were hesitant to do so either. Since the country’s assets are running out, a long-term Bitcoin bear market might compel its officials to modify their strategy if they want financial support. A U.S. or worldwide recession might hurt Bitcoin and El Salvador’s economy as digital currencies haven’t separated from the stock market. El Salvador may ditch Bitcoin by 2023.

© 2022 Cryptopress. For informational purposes only, not offered as advice of any kind.


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