It’s time for a year-end review in tandem with cryptocurrency predictions for 2023. So, it’s dark before dawn or the beginning of a brutal arctic winter, let’s find out.
The crypto predictions for 2023 suggest we are on the road to recovery from every catastrophe the industry has witnessed, but the crypto boom is still a far-fetched dream. Anyone who has been keeping a close eye on the market in 2022 could tell that crypto winter was supposed to be a passing phase. However, the mismanagement on a large scale by quite a few crypto firms aggravated the situation.
It is needless to mention, the year 2021 was a record year for the crypto market which briefly surpassed $3 trillion at the year’s end. Many businesses, fintech firms, and ventures capitalized on a crypto uptrend, setting an optimistic tone for 2022.
In contradiction to what everyone anticipated, the year 2022 shifted the dynamics, wiping out more than $2 trillion in market cap. In addition to the bearish conditions, the unexpected bankruptcies and sudden collapses were to blame; that market cap now stands at just $798 billion.
The year 2022 delivered the worst crypto performance since 2018. Nevertheless, the crypto predictions for 2023 retrace the same path that 2019 followed, leading to a market rebound. Let’s put the claim to the test while outlining the top 5 crypto predictions for 2023 that you shouldn’t miss!
1. Bearish Crypto Tendencies until Q3 2023
Cryptocurrency prediction for 2023 is full of ups and downs but it’s an established fact that the bear market will continue until Q3. The reason is, the crypto industry is at rock bottom with all the debris of collapsed firms.
The downfall of the crypto industry started with Terra blowing up $60 billion worth of coins in algorithmic smoke. While the crypto industry was still recovering from turbulence, the infamous FTX’s CEO Sam Bankman-Fried pulled a typical old-fashioned fraud that dragged down $32 billion worth of crypto exchange to the ground.
The meltdown was such that the firm didn’t even get a chance to dust itself off after the fall and soon filed for Chapter 11 bankruptcy, which also became the fate of many prominent firms.
The insolvencies and fallout of crypto firms have triggered a liquidation cascade that we believe could extend the downcycle for at least several more months. As it suggests that we are already at the last stage of the worst-case scenario, the crypto prices will pick up in Q3 of 2023.
The main driving factor for the crypto price pump would be bitcoin halving which is around the corner. The bitcoin cycle suggests that we are in a markdown phase (bear run). This means the bitcoin halving, which takes place every 1275 days, will come into effect by 2024.
The latest bitcoin halving event occurred in May 2020, which clearly points out 2024 will be perceived in anticipation for the same. The bitcoin demand will be strong in the second half of 2023 as investors would start hoarding bitcoins to prepare for the upcoming bull run.
With potential bitcoin dominance, the crypto price prediction for 2023 indicates Ethereum and other altcoins will also enjoy the uptick in market activity from Q3. You can also check out quantumaitrading.net for more info on how to sail through the crypto winter while keeping losses at bay.
2. Web3 Adoption will hit the Mainstream
Crypto price predictions for 2023 involve constant stop-and-start patterns which will make it difficult for market speculators to deploy capital in the first half of the year.
The second half of 2023 will change the market sentiments as suggested in the above-mentioned crypto prediction for 2023. The Web3 initiatives in spite of starting slow at the beginning of the year may skyrocket at the year-end.
Against all odds, in Q3 2022 some of the major brands entered Web3 including LimeWire, Mastercard, Gucci, Netflix, TAG Heuer, PUMA Group, ZARA SA, NFL, Tiffany & Co., and more. The latest initiative came from Starbucks which began its Web3 loyalty program.
The Q3 2022 Web3 efforts speak for themselves. When we look at the entire 2022 Web3 journey, Nike alone has generated total revenue of over $185 million with its NFT. This figure is too big to ignore.
The global Web3 market was worth an estimated $5.7 billion in 2022 and will continue to grow in 2023. The year 2023 crypto prediction will unfold another version of Web3 and true decentralization. There would be mass Web3 adoption with new developments such as decentralized social media, commonly called SocialFi.
Crypto firms will develop better wallets to manage digital assets along with improved web3 browsers. For instance, Trezor wallets provide best-in-class security for crypto storage and are known for being immune to remote attacks. These steps will increase accessibility to DApps and smoother adoption of layer-2 solutions such as Optimism, Arbitrum, and Polygon.
Among top crypto predictions for 2023, DeFi platforms would be in greater demand along with code-enforced transparency. The decentralized approach toward the financial system will also introduce more DAOs in the crypto space.
With the increase of institutional DeFi use cases and public blockchains, venture capitalists would take a stride ahead to make Web3 mainstream. Once the market will lose its bearish tendencies after the first half, crypto venture capitalists (VCs) will set their foothold with significant investments in pursuit of a sizable return.
VCs would first wait for things to bottom out so they don’t get stuck in risky situations. Later in 2023, lending and trading protocols can see heavy funding to compensate for all the hacks, treasury shortfalls, exchange collapses, and regulatory changes.
This brings us to our next crypto prediction for 2023 to give you insights into the role of big brands in the crypto space.
3. The Big Brand Theory
The big brand theory about crypto predictions for 2023 is that market biggies would embrace crypto projects to sponsor their ads and campaigns. The value of the crypto industry builds on users, influential personalities, tech tycoons, and growing businesses. Web3 will continue to thrive in 2023 since major big brands will continue to experiment in the crypto space.
Some of the major brands in the Web3 space include Nivea, Adidas, Louis Vuttion, Pepsi, Timex, KFC, Disney, H&M, Porsche, Ralph Lauren, Zara, Estée Lauder, BMW, Hyundai Motor, Skoda, GAP, Ray-Ban, Audi, Visa, and the list can go on and on!
The point here is, several big brands have already ventured into the crypto space whether via accepting cryptocurrencies as payments, launching NFTs, or making a metaverse debut. We could say, at least 1/3rd of the international top 100 brands have already entered the Web3 space.
It’s fair to say, later in 2023, we could see the subsequent wave of brands that will join the crypto bandwagon. The pressing question is why big brands want to adopt crypto, NFTs, and metaverse concepts. The answer is simple, NFT adoption is manifesting itself via new forms of utilities that are not only limited to art collectibles.
NFTs have become a digital identity, event tickets, memberships, subscriptions, tokenization of real-world assets, and whatnot. Moreover, the underlying concept of NFTs, blockchain technology, is being leveraged by many companies to benefit from the security and transparency it provides.
These firms are developing their own blockchain or integrating projects on existing ones. IBM has developed its own blockchain and has recently promoted its benefits in healthcare enterprises.
The crypto prediction for 2023 also suggests that there would be regulatory clarity on IP, licensing of Web3 assets, and classification of NFTs (as securities, etc). Most recently, Flipcart and Polygon also launched blockchain-eCommerce CoE to boost their Web3 efforts.
4. Regulatory Authorities to get its claw into Crypto
A full-scale regulatory framework is on the to-do list of most countries that are actively planning to tighten the crypto laws and strengthen on-chain regulation. And who could argue on that, considering all that happened last year?
The year 2022 ended with a loud thud against a concrete concept of cryptocurrency, shaking the very foundation of blockchain as 8-figure-hacks and thefts flashed on headlines. All these incidents triggered the need for crypto regulation. This brings us to the core of crypto prediction for 2023.
Against the tragic backdrop, the key theme is, new reforms will usher in the next cycle and will lead to new opportunities.
In 2022, many countries announced their plans to launch the Central Bank Digital Currency (CBDC), while others are already in the pilot rollout phase. For example, Brazil is planning to launch CBDC in 2024, Nigeria is actively promoting CBDC, and the Indian Central Bank has already launched a pilot for CBDC (Digital Rupee). Since these events are brought forth in our 2023 crypto predictions, we could see many governments launching (CBDC) and regulating cryptocurrencies this year.
This way, countries are not only attempting to leverage crypto concepts but hedging the potential customers against fraud. Many argue that it defies the decentralized approach, but crypto predictions for 2023 have much more in-store than digital currencies.
Since the crypto market would be in the recovery phase, there would also be a slew of ETFs that would explore a basket of digital assets. As such, crypto ETFs will also attract investors to diversify their portfolios without having to handpick individual tokens.
With investments flooding from every corner, while also complying with the regulatory framework, insurance, and audit firms will also interact with the crypto ecosystem under new regulations.
5. Metaverse and Play-to-Earn Gaming will go a level-up
In our cryptocurrency prediction for 2023, we have high hopes for metaverse, play-to-earn, and blockchain-based games. Though 2022 had enough of these buzzwords, 2023 will create an open creator economy with blockchain-based play-to-earn projects.
The industry has seen legacy brands and non-crypto tech companies seeking to enter the metaverse. In 2022, everything that happened in the real world shifted to the metaverse such as the FIFA World Cup Metaverse, Forbes’ metaverse event, music fests, concerts, fashion shows, and more.
When major brands are already making waves in the metaverse, their rivals are also expected to make their metaverse debut. The crypto predictions for 2023 point out that the play-to-earn industry will also be booming by the end of the year. The most anticipated play-to-earn games are The Sandbox and Gala Games which have already gained a lot of hype, making them hard to resist.
If reading these crypto predictions for 2023 makes you think Play-to-Earn games that ruled 2022 will continue to reign alone, then you are wrong. The gaming world never misses a chance to evolve and in 2023 you will see a revolutionizing gaming concept called GameFi. Here are the top 10 GameFi projects that you can watch out for in 2023.
2023 would surely be a year of rapid growth and innovation in space. Even in bearish conditions, companies went full-fledged in releasing their blockchain-based games. Considering all the crypto predictions, it’s fair to say, we can see a lot of metaverse and play-to-earn games initiatives in Q3 of 2023.
After reading all the crypto predictions for 2023, you must be having some questions on how you should strategize your investments to prepare for the bull run. Here are some FAQs for you to clear your doubts!
FAQs About the Crypto Ttrend in 2023
- Will crypto go back up in 2023?
As per the technical analysis, the crypto market could remain bearish until Q3 of 2023. Moreover, 2023 is all about the crypto recovery phase rather than the boom, which is expected in 2024.
- Which cryptocurrency will rise in 2023?
The cryptocurrency that will rise in 2023 is Bitcoin because a bitcoin halving event (that happens every 4 years) is expected in 2024. In anticipation, people would start hoarding bitcoins which will eventually pump the price of not only bitcoin but other cryptocurrencies as well.
- Does Web3 have a future?
Web3 adoption is the next big thing that we will see after an era of social media platforms, browsers, and apps. Over the last 12 months, $6.5 billion has already been spent on Web3 initiatives and in the coming year it would truly revolutionize fintech, businesses, and life in general.
- What can we expect from Web3 in 2023?
Many legacy brands are already neck-deep in Web3 and more would join the bandwagon in an effort to keep up with technological advancements such as blockchain technology, metaverse, and cryptocurrency.
- Will the crypto market recover in 2023?
Yes, the crypto market will set on the road of recovery in 2023 but the condition would likely stay bearish until Q3 of 2023.
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