7 Predictions for crypto in 2023.
This year showered the blockchain and crypto industry with numerous uncertainties from the beginning of crypto winter to the filing of the recent FTX bankruptcy, the list goes long. However, with the Crypto bear market having made investors run for their money, the long-term condition and growth seem to be in excellent stature. The removal of unethical players and practices from the market is leading to a better Web3 and crypto future, and overseeing the current trends it would not be too surprising to make a few predictions.
- CHANGE IN THE FUNDING PATTERN
Considering the present situation, it wouldn’t be too hard to realize that funding by the VCs and angel investors will reduce for at least the first quarter of 2023. With trading volumes and interest decreasing, adding up to the broader macroeconomic situation may result in the correction of the market.
2. BRAND DEALS WILL BE GOING UP IN THE WEB3
The present crypto market primarily involves the users’ money and platform token with less opportunity for the token holders to make money on their equity. However, prominent brands such as Nike, Meta, etc, are looking to solidify their position in Web3 majorly through NFTs (Non-Fungible Tokens).
3. THE ROLE OF THE COMMUNITIES WILL ALTER
As a common belief, many projects believe that having a telegram or Discord community is a key factor in making the project successful, however, in reality, the majority of these communities consist of speculators looking to exit the project after booking in their profits. So, it would not be wrong to say that the business owners will be changing their perception towards communities, and by this, we do not mean the communities will render useless, though they will be seen in the new roles.
4. THE WEB3 GAMING INDUSTRY WILL EVOLVE
Web3-based games or the Metaverse game will top the list in terms of innovation as the complete model is likely to change after the splashing of the current games. The majority of the available games at present are copies of past Web2 games, and the present downfall will make developers bring in their creativity and innovation to the product.
5. THE CONSENSUS MECHANISM MAY GET BETTER
The efficiency of blockchain has always been a topic of concern, and Ethereum shifting its mechanism from Proof of Work (PoW) to Proof of Stake (PoS) is a vital step toward the solution. This step would increase the number of transactions on the blockchain in a stipulated time with fractions of energy presently used.
6. STABLECOINS WILL FIND ADDITIONAL APPLICATIONS
outside the crypto capital markets, which will promote wider acceptance (especially among enterprises) and Web3 innovation. Governments and private companies will continue to investigate and develop blockchain technology, and some have announced centralized public infrastructures like digital currencies issued by central banks or marketplace infrastructure.
7. GOVERNANCE AND REGULATORY FRAMEWORKS WILL EMERGE
The recent failures of the past might allow governments and other regulatory agencies to come up with various regulations and frameworks to make the blockchain and crypto space safer for users. However, the technology being less understood may leave scope for other potential downturns.
With these predictions in place, the uncertainties of the future are still uncovered. The road ahead is full of turns, but the one adapting to change will stay clear of all perils.