The year 2022 has been a roller coaster ride in total with a lot of huge price crashes, many firms entering into bankruptcy along with scams and hacks. Well, now as the year 2023 began on a positive note, a new hope has sparkled among investors and traders. However, the question – is this a beginning of a new crypto leap or just another bubble, still hovers around.
However, it’s a known fact about crypto uncertainty, but a team from Bitwise Investment has come up with 10 predictions of what we can expect in 2023.
The market began the year 2023 in a recovering phase. With Ethereum’s merger, benefits of Layer-2 solutions, Shibarium and other new upgrades being lined up, the report claims that 2023 will turn out to be bullish.
Increasing Layer-2 solutions and Ethereum’s upgradation being scheduled for this year which will reduce transaction cost by 1000%. Through this process, the cost is expected to be below 1/10th of a cent and this will see a new era in the financial world led by the crypto market.
Even though in 2022, Coinbase’s stock dropped by 86%, the firm’s revenue has increased from 2018’s $520M to $3.3B in 2022. As per the Bitwise team, Coinbase, with the largest installed user base will make a comeback when crypto recovers.
The Shanghai Upgrade which is expected to happen in 2023 will allow stakers to withdraw their staked ETH. However, the report claims that Ethereum will limit the ETH that can be withdrawn and this will in turn raise staking by 50%.
As Ethereum switched from proof-of-work to proof-of-stake, the new ETH that the Blockchain creates every day got reduced. Now as ETH has completely transitioned to PoS, the network will see increased demand.
Crypto is following stocks, the report claims that this correlation will drop below 0.5 in 2023. This is because, the team believes that crypto market will depend more on crypto related factors like regulations, upgradation and much more
Pat McHenry (R-NC), who is a crypto proponent is leading the House Financial Services Committee and hence there might be at least one crypto regulation in 2023
As per the reports, 2023 will see investors looking for transparency and clear regulations. Hence, with USDC being more transparent, regulated will surpass USDT in 2023
It is expected that 2023 will see one or more Crypto Unicorn collapsing
In November 2022, Uniswap registered much more trade than Coinbase. Hence, in Q4 of 2023 it is expected that Uniswap will see more trade volume than Coinbase.
Overall even though the year will see many challenges, the Crypto market will rise and hold on to its bull market.
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