Ripple (XPR) executive predicts that crypto acquisitions will strengthen the industry in 2023, despite major collapses like FTX.
According to a top executive at Ripple, the cryptocurrency market will experience more consolidation in 2023 as stronger corporations buy more cryptocurrency and blockchain startups.
On January 9, Sendi Young, the managing director for Europe at Ripple, shared a number of industry forecasts for 2023 on Twitter, expressing optimism for the near-term prospects of cryptocurrencies.
Young predicts that the blockchain and cryptocurrency sector will see a lot more acquisitions in the upcoming year, which will assist these businesses and startups fill in the holes in their skills.
In the wake of tragedies like the FTX collapse as well as other problems faced by companies like Celcius, Voyager, Three Arrows Capital, and others, the sector will be further strengthened by the acquisitions, the Ripple executive observed. Young also anticipated that in 2023, traditional financial (TradFi) organizations and other well-established businesses would acquire more cryptocurrency and blockchain businesses.
Young’s forecasts on the state of cryptocurrency purchases in 2023 coincide with rising interest from major traditional financial institutions in acquiring divisions of the now-defunct cryptocurrency exchange FTX.
According to a court document from January 8, as many as 117 financial and strategic counterparties have expressed interest in buying one or more of FTX’s subsidiaries, including FTX Japan, FTX Europe, LedgerX, and Embed.
The flagship mining facility Helios of Argo Blockchain was purchased by Mike Novogratz’s Galaxy Digital in late December for $65 million, marking one of several significant purchases in the cryptocurrency sector recently.
In order to extend its exposure to the Bitcoin (BTC) mining industry, Novogratz claims that Galaxy’s acquisition of Helios Mining was a game-changer.
Among other things, Young predicted that as institutions come to understand the advantages of blockchain for real-time merchant settlement, fiat-backed stablecoin use will increase in 2023.
The executive also projected that central bank digital currencies will “come of age” at this time, noting that the FTX crash has increased the urgency with which countries must create a “dependable digital settlement asset as a secure alternative to other crypto solutions.”
