Is crypto dead now? Why Crypto 2023 Outlook Is More Positive Than You Think – Cryptopolitan

A lot of confusion regarding the future of cryptocurrency is prevalent in the market right now, especially after the recent decoupling of the USDC stablecoin. If you search “is Bitcoin dead” on Google, you will likely come across conflicting opinions.

Most crypto experts predict that cryptocurrency will rise in 2023; the opposite is true for most naysayers who keep asking is crypto dead now?

A 30-second Coinbase ad, which aired during the Golden State Warriors’ game against the Mavericks on Friday, pointed out that people have been rejecting crypto in exactly the same way for the past 10 years: by declaring it dead.

The ad is also a complete 180 from crypto companies’ hype-fueling Super Bowl ad blitz. Coinbase’s own Super Bowl ad, a mysterious commercial with a floating QR code, brought 20 million people to the company’s website in a single minute.

Coinbase makes a good point. While most people may not be encouraged to use Coinbase to buy the dip, the historical context is helpful as people think about crypto’s future.

In this post, we will give a definite answer to whether cryptocurrency is dead, or whether the outlook is more positive than you think.

Did Crypto Take a Fatal Hit in 2022?

Cryptocurrencies started very well at the start of 2022. But unfortunately, the enthusiasm did not last long despite being astronomically high. By the end of the year, major coins like Bitcoin and Ethereum along with other altcoins were deep down.

LUNA’s collapse in early 2022 cost investors more than $60 billion, as the native Terra coin lost all of its value within a week. This sparked widespread fear among the crypto community.

Other catastrophic events such as the FTX stock market crash added further fuel to the fire and caused massive panic among cryptocurrency investors. The company had a value of 32 billion dollars at the start of 2022. Now it has gone bankrupt and the founder of FTX, Sam Bankman-Fried, has received accusations of fraud.

After such turmoil, it is natural for one to ask: is crypto dying? In short, the answer is no. Cryptocurrency is certainly not dying. Although one cannot help but agree with the fact that 2022 has been quite tough for cryptocurrencies and DeFi.

Nevertheless, it is in times of despair and hopelessness that bold risks reap great rewards. True believers in Bitcoin and cryptocurrencies still haven’t given up and expect the crypto winter to end in 2023.

Is Crypto Dead?: Our Crypto 2023 Outlook

Based on past experiences, a handful of projects survive each time the crypto market crashes and recover. Bear markets usually weed out old and weaker projects as they lose demand and die.

Today, only two major cryptocurrencies are accepted as blue chips: Ethereum and Bitcoin. Of course, no one can fully guarantee the long-term survival of these coins. But since these coins have very high value propositions and a strong track record, it’s safe to say that these big coins are here to stay.

While Bitcoin is the gold standard in the world of cryptocurrencies, the Ethereum network runs on countless devices and supports decentralized applications. So Ethereum’s application in various industries means that the demand in the future may increase further.

Since both the value proposition and the underlying technology of cryptocurrencies have not changed, buying Ethereum and Bitcoin at their current prices will be no different than buying them at their all-time highs. Most crypto loyalists understand this concept and therefore the market’s conviction is strong. Of course, some investors may choose to stay out of the market during the bear market, but this will not mark the end of cryptocurrencies.

So, cryptocurrency is certainly not dead and the outlook in 2023 looks decent. However, the short and medium term does not look very bright, especially with the recent decoupling of the USDC. However, some experts argue that this depeg is not a strong enough reason for panic.

Current crypto prices for the best cryptocurrencies in 2023

The cryptocurrency market right now is huge. As fear and uncertainty increase in the crypto community, many altcoins are struggling to survive. In times like these, the coins with the highest market value, especially the blue chips, are a safer investment.

In this section, we will discuss current crypto prices and trends for the top cryptocurrencies by market cap.

Bitcoin

Bitcoin is the top cryptocurrency by market capitalization and it is accepted as a gold standard. Right now it is priced at around $20,500. However, some experts have signaled that Bitcoin has the potential for further downside.

So it could possibly reach the $18000 mark because the short term looks pretty bleak. But when the crypto winter comes to an end, there’s no reason why we can’t see Bitcoin reach its all-time high again.

Ethereum

Ethereum has a huge value proposition and the network allows businesses to run their dApps with smart contracts. Therefore, Ethereum has huge applications in various industries. This strong use case makes it a safe long-term investment.

Currently, Ethereum has dipped around the $1470 mark following the USDC depeg. However, it peaked at $1,740 on February 16, 2023. Experts believe that Ethereum has the potential to reach $2,000 by the end of 2023 due to the growing use of smart contracts.

Tether

With a market value of more than $70 billion, USDT is also a safe investment for a long-term hold. Tether is a stablecoin backed by the Euro and US Dollar, and it holds its value equal to one of the denominations.

However, the recent depegging of the USDC has slightly shaken confidence in stablecoins. Nevertheless, Tether is still highly preferred by cryptocurrency investors who do not want to face the uncertain volatility of other tokens.

Binance coin

By the end of March 2023, Binance Coin reached a price of $286, which is quite a gain considering that the price was only $0.1 in 2017. Currently, the price has dropped around $276, but that is due to the ongoing fear in the crypto world. The month of March will prove to be decisive in determining the course of BNB this year.

Binance Coin is the native cryptocurrency of the Binance platform, which is among the largest cryptocurrency exchanges globally. This coin is used for trading and paying fees on the Binance platform. With increasing use, the use of Binance Coin is also increasing, for example the ability to book travel arrangements.

USD coin

USDC currently has a market capitalization of around $39 billion and has marked a 4 percent decline in the second week of March. As a stablecoin, it is pegged at $1. However, the coin was de-pegged in 2023 and the current price is around $0.96, which has sparked a lot of fear.

The future state of USDC will strongly determine the course of the cryptocurrency market because USDC has a massive market value. A crash in USDC could send the entire cryptocurrency market down. However, it is unlikely to happen, although it is possible.

Crypto is not dead… but is it dying?

Well, the current state and short-term future of cryptocurrencies is very bleak. However, there is still some light at the end of the tunnel. The overall outlook for cryptocurrencies is quite positive in 2023 and the market is expected to start recovering towards the end of the year. So, cryptocurrency is certainly not dying!

There are certainly bad apples in the crypto barrel, but the industry needs to find a way to weed out dubious intentions and misguided comments. First, Charles Hoskinson, Cardano CEO, warns against ways crypto personalities in the market spread fear, uncertainty and doubt (FUD).

The controversial CIP-1694 proposal describes a mechanism for on-chain governance, which is intended to support the Voltaire phase of the Cardano network. The document builds on the original Cardano governance scheme centered around a specific number of governance keys.

Product manager and Web3 advisor Vanessa Harris claims that the power concentrated in the constitutional committee makes it centralized and difficult for the committee to be replaced.

What is the current market value compared to previous years?

The cumulative market capitalization of cryptocurrencies fell dramatically between May 2021 and June 2021, as digital coins became less likely to be an investment tool. This was attributed to China’s efforts to stop mining and the expansion of cryptocurrencies in the country. Bitcoin’s market capitalization made up the majority of the total market capitalization.

Bitcoin is approaching its limited, maximum supply level, pushing up its price and making it harder to mine. As a rule of thumb, the fewer coins available to the general public, the higher the value of the cryptocurrency. This is especially true when the coin’s maximum supply is reached: No more mining is possible and the market price reflects supply and demand.

On the other hand, Blockchain.com wallets, which enable the purchase of Bitcoin, reached over 81 million wallet users in 2022. User numbers for several cryptocurrency apps worldwide grew significantly in 2021, as revealed when comparing download numbers from Coinbase, Blockchain Wallet, Crypto.com, BRD, Trust, Luno, Binance, Bitcoin Wallet, Bitcoin Wallet by Bitcoin.com and Coinbase Wallet apps. This phenomenon can be understood as the fact that, despite the risk, the use of cryptocurrencies is spreading.

Our final thoughts on cryptocurrency in 2023

As always, it is important to remember that cryptocurrencies can be extremely volatile and the market can quickly take a turn for the worst. Events like FTX crash, LUNA crash and USDC depegging are enough to suggest that nothing in the crypto world is completely safe.

Lawmakers in the US are taking a closer look at crypto, and while it’s unclear exactly how or when regulations will come down the pipeline stateside, the possibility seems more real in Europe.

But taking informed and calculated risks separates successful traders from novices. Since the current state of cryptocurrencies is very bleak, we suggest you tread very carefully and stay away from investing until the outlook becomes more certain.

In the bigger picture, the outlook is very positive and an improvement in the market is expected by the end of 2023. So in the current scenario, it is all about patience and making moves with high conviction while investing.