3 Trends for the Cryptocurrency Market in 2023
Three categories may be highlight of 2023 as they are focused on solving this year’s big issues
Guessing what trends to expect next in the crypto world is not an easy task. Therefore, today we are going to analyze the sectors that may stand out in 2023. It is important to note that this content is not a recommendation to buy or sell any cryptocurrency.
Layer 0
Indeed, this is one of the areas of greatest interest to large investors and developers.
Layer 0 solutions were developed for the blockchain market to allow the interoperability and construction of blockchains with specific characteristics without the need for a centralizing protocol.
Layer 0 solutions allow the interoperability and construction of blockchains with specific characteristics without the need for a centralizing protocol.
Furthermore, Layer 0 manages to bring security while improving the user experience in the world of smart contracts. We cannot fail to point out that by communication with different networks, the user ends up paying a lot of fees, reducing his profit on a transaction.
Despite the dramatic price drop seen on the crypto market this year, resources through the blockchain remain in high demand. If they remain the same, Layer 0 solutions will grow accordingly.
Benefits:
- Reduces costs;
- Eliminates intermediation;
- Increases security;
- Complement Layer 1 and Layer 2.
Two notable examples of Layer 0 are Polkadot (DOT) and Cosmos (ATOM).
DeFi
With the bankruptcy of FTX, decentralized finance may gain even more space in 2023. Although this environment still lacks good user experience, investors who felt – and are still feeling – the ripple effects of Sam Bankman-Fried’s exchange on their loans and centralized income, may prefer to study a little more and venture into this sector.
Decentralized finance has the benefit of working through smart contracts. Developers can always audit their operations and bring information to investors if a DEX (decentralized exchange) or lending platform is working perfectly, as everything is recorded on the blockchain.
Furthermore, the fact that the user does not have to relinquish custody of their assets could be a crucial factor for more attention being focused on decentralized finance. The solutions being prepared by decentralized oracles to make DeFi even more attractive could also boost this sector in the coming year.
Benefits:
- Permissionless;
- Has immutability;
- Much more transparent than centralized platforms;
- Easy access to tokenization.
Chainlink (LINK) and Uniswap (UNI) are the highlights of the DeFi sector.
Bitcoin
That’s right, the primary cryptocurrency cannot be left off of our list. When it comes to security, no blockchain asset has managed to prove such strength in this area.
The capitalization loss did not cause Bitcoin’s fundamentals to change. Miners continued validating transactions and the BTC network fee reached historic levels even as the cryptocurrency price failed to respond.
Bitcoin was the only cryptocurrency to be championed 100% by blockchain investors after the FTX collapse, and it further strengthened the sentiment of maximalism around it. True decentralization is found in BTC and, therefore, it is still a great response to all the crashes that occurred in 2022. It remains a great alternative to projects with a high degree of centralization.
Terra Classic (LUNC) and FTT are examples of what it is like to create money out of thin air and without value. Bitcoin displays exactly the opposite – money that comes from proof of work and brings with it the value of financial empowerment.
