Crypto Crystal Ball: What’s in Store for 2023?
At 21.co, we are ringing in the New Year with optimism!
It’s no secret that 2022 was unusually eventful for crypto – leaving many investors curious about what the new year will bring. While we cannot say for certain what will happen this year, we are confident that 2023 will be fundamental in propelling the crypto industry forward. Here are the key happenings that we believe will most impact the industry this year.
Central Bank Policy Changes
Last year, the American Federal Reserve was aggressive with rate hikes leading experts to believe that 2023 may be equally as firm in policy. In fact, a recent Forbes article predicts that rate hikes are most likely guaranteed but will hopefully be coming at a slower pace. In 2022, crypto markets correlated strongly with the equities markets, which were heavily influenced by larger rate hikes. Whether the Fed decides to raise rates, we are certain that the crypto market will see the impacts as well given the previous correlation trend.
Expanded Non-Fungible Token (NFT) Utility
In the last few months of 2022, #NFTs saw a downward price trend. Despite falling prices, 2023 is sure to expand the utility of NFTs – further widening their potential use-cases across the globe. Well-known brands are adopting NFT technology for their own consumers at a faster rate than ever. For example, Warner Music Group recently partnered with LGND Music, an ownership ecosystem built on blockchain that allows fans to own and trade music and other digital collectibles. In 2023, we expect to see this trend of bringing the perks of blockchain technology mainstream.
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Facilitation of Proof of Identity
The events of last year – including FTX’s downfall and criminal actions – have exposed unprecedented fraudulent exploits in the crypto industry, and it is clear that companies will have to be focused on regaining consumer trust in 2023. On 21.co ’s Inside Crypto Podcast, we recently spoke to Dan Sutherland, CEO of Self, a #Web3 fraud solution. The conversation covered Self’s mission to build a future where users can be sure who they are sending money to with 100% certainty. We are seeing Web3 projects commit themselves to facilitating proof of identity, and these efforts to decrease and prevent fraud is a positive indicator for repaired investor sentiment to come this year.
Regulatory Action
Top of mind for many investors, 2023 will bring continued conversations about crypto regulation. Future legislative decisions will range from local to countrywide laws and work to restore semblance of confidence for the global consumers. Increased regulations will make way for regulated crypto companies like 21Shares to expand into new markets, bringing safe, accessible crypto to an entirely new user base.
For more information about the events most heavily shaping the crypto industry this year, listen to the newest Inside Crypto podcast episode here: bit.ly/3Ea40XE
This information is not financial advice. The information contained herein may not be considered as economic, legal, tax, or other advice. The information provided in this post also does not constitute a prospectus or other offering material and does not contain or constitute an offer to sell or a solicitation of any offer to buy financial instruments in any jurisdiction.