Will the sudden fallout of FTX lead regulators to make new laws that are stricter? As we say goodbye to 2022 and welcome 2023, it’s time to look at some crypto trends that we can expect to see in the coming years. This article highlights the future trends of crypto.
Today, the market capitalization of the cryptocurrency industry is less than $1 trillion, it is possible that this figure could decrease to between $300 and $500 billion; this will be consistent with the regular correction that occurs during the active growth phase in 2021.Â
Statistics show that more than 300 million individuals around the world make use of cryptocurrencies and other forms of digital technology, whether for commercial, domestic, or other purposes.Â
Let’s try to identify the most significant developments in the world of cryptocurrencies that are taking place in 2022, will continue throughout the entirety of the year 2023, and may continue until 2025 and beyond.
Future crypto trends for 2023
Below are the future trends for cryptocurrencies for the year 2023
- More Defi applications
- Governments-owned centralized crypto-currencies
- More meme coins will be released
- Increased spending on stablecoins
- NFTs may not make a comeback
- The bitcoin market will be under regulations
More DeFi applications
The central idea is that traditional financial transactions can take place within a blockchain. This is a crypto trend where smart contracts are used to make transactions, but unlike traditional wire transfers and other financial services, they don’t involve a middleman at all.
Inside DeFi, you can use credit, make deposits, make derivatives, and take care of other businesses. Many analysts say that the DeFi sector will grow quickly and change quickly in 2023. It is still coming together.
DeFi Pulse says that the total value of digital assets related to the decentralized finance sector went from $2 billion in 2015 to $15 billion in 2020. After a year, it was worth nearly $100 billion.
Recently, farming has become the most popular trend in the DeFi sector. Lending digital assets on different platforms is a good way to make money. In return, users get more coins or a certain percentage.
This is like digital banking because someone puts their cryptocurrency into a pool and then gets a share of the money that was put in. People often put their money in DeFi so they can get new cryptocurrency in exchange for high-interest rates. In the modern world, this is a much better way to make money than using low-interest centralized tools.
Compound (COMP) is one of the biggest platforms in the DeFi sector. It lets you put coins into a pool and get native tokens in return, which are a stake in the project. The compound works in the cryptocurrency industry as a central settlement platform for lending.
Like Crypto.com, similar projects let you combine traditional financial services with the DeFi sector. In the last five years, the number of search queries on the platform being talked about has grown by 2,900%. The service helps people put a digital asset in a wallet, trade cryptocurrencies and make money, and use the cryptocurrency in the wallet to pay with Visa and other plastic cards.
In 2022, DEX, or decentralized exchanges, are also becoming more popular. In the last two years, the number of search queries has grown by 100%. With these tools, a person can do any transaction with a digital asset directly, without the need for a middleman. They also give the person full ownership rights and control over their personal assets. Every month, more and more trades take place on decentralized platforms.
Governments-owned centralized crypto-currencies
The Sand Dollar, the digital version of the Bahamian Dollar, will be officially tested and released in the Bahamas in the year 2020, making the Bahamas the first nation to do so. China, which is in the lead in this endeavor, has already conducted tests of the digital Yuan and debuted the pilot version during the first week of January 2022.Â
It is currently accessible in 23 of the country’s most important cities, and the government is working toward making this crypto trend available everywhere in the United States within the following year.
In the domestic market, the e-CNY app, which can be downloaded from the Apple App Store and the Google Play Store, allows users to purchase and trade digital Yuan. In 2023, we anticipate the arrival of digital versions of the US Dollar, the British Pound, and the Euro.
More meme coins will be released
Dogecoin was initially conceived of as a meme in 2013 and was inspired by a picture of a Shiba Inu dog that went popular. Since then, the crypto trend has come a long way and currently has a market valuation of $13.71 billion as of the time this article was written.Â
Given that there are currently over 200 meme coins in circulation, it is highly likely that this pattern will persist into the year 2023. Tamadodge is the most recent meme coin, and users can earn it by playing games or buying it with real-world currency in order to make purchases within games.
Increased spending on stablecoins
When times are uncertain, investors look to assets that are reliable as a way to find a safe haven. Stable assets, this crypto trend also known as stablecoins in the cryptocurrency sector, are often regarded as being more stable than volatile cryptocurrencies such as Bitcoin and Ethereum.
Because of this, they are a great choice for investors who want to keep the value of their assets stable during times when the market isn’t sure what will happen.
NFTs may not make a comeback
In the year 2021, non-fungible tokens, or NFTs were ubiquitous. But in the unpredictable realm of crypto, even the most stable of situations can rapidly shift.
Open sea is the first and largest marketplace for digital collectibles and non-fungible tokens on the entire planet. This crypto trend had the biggest reduction in monthly trading volume, going from $4.86 billion in January 2022, down by a mind-boggling 94%, to $303 million in October 2022. This was the largest drop among all cryptocurrencies.
The bitcoin market will be under regulations
As soon as breakthroughs in technology, cryptocurrency, and other blockchain-based innovations began to gain traction, governments started keeping a close eye on them. The year 2017 marked the beginning of heightened scrutiny from the government, which was in response to the proliferation of ICOs.Â
In 2021, there was a little bit more clarity on how cryptocurrencies were going to be regulated. However, legal difficulties relating to digital assets’ nature baffle authorities. The situation with Ripple is a good example of this general trend, and it shows how these problems are causing confusion.
In the year 2020, the SEC opened an investigation into Ripple Labs. When the vast majority of XRP coins were sold to normal users, the SEC believes that the company was marketing almost $1.3 billion worth of assets to potential buyers.
SummaryÂ
In spite of the thoughts of industry experts, it is still unclear which cryptocurrencies’ values will shift and where the industry will go from here in the years to come. However, there is one thing that cannot be denied, and that is the undeniable fact that cryptocurrencies are here to stay!
