Cryptocurrency and Blockchain Trend to Watch in 2023

There is no doubt that the cryptocurrency market is experiencing difficulties. At the beginning of the year there was a good deal of confidence, but at this point investors are much more cautious about where they invest their money.

This applies to both institutional and regular investors, as both have been badly affected by the crypto winter.

The cryptocurrency market is driven in a new way by investors’ cautious approach to investment. Money is no longer just thrown around carelessly like before.

The dot-com boom of 2000 is analogous to what the cryptocurrency market is going through right now, and 2023 will be a clear indication of that.

One of the most difficult years for the cryptocurrency industry has been 2022. To begin with. This year, Bitcoin and Ethereum lost around 64% (more than half) of their value.

The decline of FTX was also seen in the cryptocurrency community. In November 2022, FTX was the talk of the town due to an $8 billion liquidity crisis and Binance dropping out of the scheme to buy the struggling exchange.

Although this crypto winter is giving way to certain encouraging trends that could usher in a crypto spring.

It seems that 2023 will be a year of great change, and there are six significant trends that are currently dominating the market.

Will regulatory watchdogs pass tough new legislation in response to FTX’s precipitous collapse? It’s time to highlight some potential cryptocurrency trends as we wave goodbye to 2018 and welcome 2023.

More CBDCs to be launched

A June 2022 CBDC Tracker report had revealed that 105 countries are looking at CBDCs. With 50 of them in development, pilot and launch phase.

In the first week of January 2022, China, which takes the lead, researched and introduced the pilot version of the digital Yuan. Currently, 23 major cities offer it, and the government plans to roll it out nationally in the coming year.

Using the e-CNY app, offered domestically on the iOS and Google Play stores, you can buy and sell digital Yuan.

We expect the US Dollar, British Pound and Euro to introduce their digital currencies in 2023. Africa is not left out of this adoption as Nigeria and Ghana have also launched.

Increased investment in stable assets, or stablecoins

Investors seek security in reliable assets in unpredictable times. Stable assets, often referred to as stablecoins in the cryptocurrency field, are believed to be more stable than volatile cryptocurrencies such as Bitcoin and Ethereum.

They are the perfect choice for those who want to protect their money during volatile periods due to this characteristic.

DeFi is getting more attention

You must have encountered the term “DeFi” more often than you expected as a crypto investor or researcher.

The term “Decentralized Finance” or “DeFi” refers to another financial and investment environment that uses cryptocurrencies and blockchain technology.

The search trend for DeFi has increased by more than 5600% since 2017 to demonstrate this idea. It is the foundation of cryptocurrencies and the primary driver behind their creation.

Decentralized finance is based on the assumption that no organization controls it and that all transactions take place in a public ledger.

DeFi uses “smart contracts” to enable transactions without the involvement of middlemen.

This is the polar opposite of modern centralized finance, where transactions occur over secure ledgers under the total supervision of banks and financial organisations.

Ethereum effectively created the first cryptocurrency with the potential for smart contracts, giving it first-mover advantage in the sector.

As of now, the Ethereum network is the most popular option for creating smart contracts. However, DeFi is still in its early stages, much like the early internet, when chat rooms and lively websites ruled the 1990s.

The full promise of the internet, including digital payments and the evolution of telecommuting, did not begin to manifest until the 2000s.

More meme coins will be developed

Dogecoin, a cryptocurrency first introduced in 2013 as a meme based on a Shiba Inu dog image that went viral, has come a long way to reach its current market cap of $13.71 billion.

With more than 200 meme coins currently in use, this pattern is likely to persist into 2023. Tamadodge is the newest meme cryptocurrency and users can either earn it by playing games or buy it with fiat money to spend for in-game transactions.

NFTs may not experience a comeback

In 2021, NFTs (Non-Fungible Tokens) were widely used. But in the highly volatile realm of cryptocurrency, things can change very quickly.

The first and largest market for digital collectibles and NFTs is called OpenSea. It experienced the largest decline in monthly trading volume, from $4.86 billion in January 2022 to $303 million in October 2022, a staggering 94% decline.

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