Crypto had a challenging year in 2022 as the market showed a lot of volatility due to the implosion of Terra Luna and the loss of value in Bitcoin. There is division amongst analysts over chances of recovery, but thanks to constant innovations in tech as well as new coins which continue to enter the market, the crypto industry will likely continue to grow and head in new directions. This article will discuss some of the different trends that could occur in crypto in 2023.
Stay Up to Date on Crypto Trends
If you intend on investing in crypto, then it’s important that you stay up to date on everything happening within the industry. This can be tricky as there are always developments happening in such an innovative market, but thanks to sites such as OKX, you always have a plethora of information surrounding crypto and blockchain technology at your fingertips. Check out articles such as https://www.okx.com/learn/what-is-cosmos to fully appreciate the different opportunities in the world of crypto and how you might be able to take advantage of them.
Increased Regulation on Crypto
Ever since it was first developed, there have always been calls for stricter regulation on crypto. It appears now though that these cries are louder than ever and coming from every corner of the judicial system, financial market, and government. Advocates for consumer rights are also contributing toward the calls for more regulation on crypto. This has come about due to issues with FTX, which highlighted failures in management, a poor supply of reserves, and a very narrow scope for audits. In 2023 it’s more than likely that there will be greater oversight in crypto as a result of these factors.
Increased Central Bank Digital Currencies
Central Bank Digital Currencies (CBDCs) have been increasing in popularity over the past few years. The introduction of the Bahamian Sand Dollar started this in 2020 and since then, China has launched its very own digital yuan which has millions of users and has been the focal point for billions of transactions. The GBP, EUR, and USD versions of CBDCs are expected to be introduced in 2023, with president of the European Central Bank Christine Lagarde commenting in November 2022 that it was looking into the pros and cons of launching a digital currency.
Stablecoin Investment Growth
The past year has been a troublesome time for investment in crypto and this means that in 2023 there’s likely going to be a focus on stablecoins. Investors interested in crypto will be more inclined to put their money somewhere that promises safe and steady results rather than taking risks on the crypto market. Stablecoins are considered safer for collateral given they maintain reserve assets and are pegged to more traditional currencies such as the US dollar. The supply of stablecoins is often controlled using an algorithm. Though these coins don’t promise the success stories that early investors in Bitcoin and Ethereum were able to benefit from, given their consistency and safety, they are sure to be market favorites in 2023.