2022 was an interesting and quite eventful year for the crypto and blockchain market. The news of unfortunate bankruptcies and the dramatic fall of multiple crypto companies hit the crypto market quite hard, pushing the price of Bitcoin down to $15,000. Just to make things more complicated, a new report published by Solidus revealed that 350 new scam tokens were created each day in 2022!
But this year created some memorable moments as well. The long-awaited Ethereum Merge finally happened successfully, we experienced an exciting World Cup with a crypto flavor, and the regulatory status of the crypto and blockchain industry improved considerably in different regions of the world.
As the markets are wrapping up 2022 and preparing for a new year, let’s see what lies ahead for the crypto and blockchain space in 2023.
Crypto Winter May Get A Little Warmer, But It’s Still A Winter Nonetheless
The aftermath of the Covid-19 pandemic and geopolitical tensions created a tough year for the world economy, sending the inflation rate to new highs in various countries and regions. The gloomy financial outlook is more likely to continue in 2023, creating some difficulties for all markets including crypto.
Even though financial markets and particularly the crypto space are not always the easiest to predict, it seems unlikely for the crypto winter to turn into a spring in the upcoming year.
We May See More Central Banks Enter the CBDC Game
At the moment, more than 100 jurisdictions around the world are somehow involved in the idea of a Central Bank Digital Currency (CBDC). Some of them are merely in the research phase while few have already issued their CBDCs and are exploring different methods to promote them.
Essentially, CBDCs were introduced as an alternative to cryptocurrencies that would inherit some features of this new novel asset class but be in control of a central bank or government like the national fiat currency of the country.
We can expect more jurisdictions to proceed with their CBDC plan in the upcoming year as the cryptocurrency space and its unclear regulatory status has made it hard for authorities to protect customers against potential risks.
The Crypto Market Will Take A More Regulated Shape
2022 was a relatively good year in terms of regulations as many regions proposed or passed different bills and laws to regulate their crypto market better. The European Union just approved The Markets in Crypto-Assets (MiCA) regulation. In the US, also, multiple bills have been proposed that aim to put the crypto market under the jurisdiction of different regulatory bodies within the States.
NFTs May Find More Applicable Use Cases
2022 was not the best year for the NFTs as the market experienced an extreme loss compared to the last year. Considering the current economic situation, the NFT market may experience the same fate in the upcoming year.
At the moment, we are witnessing some NFT projects exploring different new methods to create revenue, a trend that may continue into 2023.
Institutional Investors May Find Good Investment Opportunities in the Dips
Many institutional investors may find the current bear market as a good opportunity to expand their exposure to the crypto market, buying the dips as the popular term says. As the bear market continues, we may see institutional investors increase their capital in the crypto market in the upcoming year.
2023 Represents A Great Opportunity for BUIDLers
Bear markets always represent a great chance for different projects to build on their services and prepare for the upcoming bull market with a more robust, established, and strong platform to serve the users.
2023 may not be an easy year but it will hold in itself opportunities for those who are willing to build the crypto and blockchain space, creating a more reliable and helpful environment for all to benefit from.