The year 2022 has been a total roller coaster with lots of huge price drops, lots of companies going bankrupt along with scams and hacks. Well, now that the year 2023 has started on a positive note, a new hope has arisen among investors and traders. However, the question – is this the start of a new crypto leap or just another bubble? – is still around.
2023: a year of cryptocurrencies?
However, it is a known fact about crypto uncertainty, but a team at Bitwise Investment has come up with 10 predictions of what we can expect in 2023.
Crypto Market in 2023 will have a U shape
The market began the year 2023 in a recovery phase. With the Ethereum merger, the benefits of Layer-2 solutions, Shibarium, and other new upgrades in the pipeline, the report claims that 2023 will turn out to be optimistic.
Fast crypto transaction will be real
The increase in Layer 2 solutions and the Ethereum upgrade are scheduled for this year, which will reduce the transaction cost by 1000%. Through this process, the cost is expected to be less than 1/10 of a cent and this will mark a new era in the financial world led by the crypto market.
100% Increase in Coinbase Market Cap
Although in 2022, Coinbase shares fell 86%, the company’s revenue increased from $520 million in 2018 to $3.3 billion in 2022. According to the Bitwise team, Coinbase, with the largest installed user base, will return when the crypto is recovered.
Shanghai Upgrade to Spike ETH Staking
The Shanghai Update, which is expected to happen in 2023, will allow participants to withdraw their staked ETH. However, the report claims that Ethereum will limit the ETH that can be withdrawn and this, in turn, will increase the stake by 50%.
A drop in ETH
As Ethereum shifted from proof of work to proof of stake, the new ETH that the Blockchain creates every day has shrunk. Now that ETH has fully transitioned to PoS, the network will see increased demand.
Crypto & Equity Correlation Will Fall Below 0.5
Crypto is following stocks, the report claims that this correlation will fall below 0.5 in 2023. This is because the team believes that the crypto market will be more dependent on crypto related factors such as regulations, updates and much more. more.
Crypto Regulation in the US Congress
Pat McHenry (R-NC), who is a cryptocurrency advocate, leads the House Financial Services Committee, and therefore there could be at least one cryptocurrency regulation in 2023.
USDC to outshine USDT
According to reports, in 2023 investors will seek transparency and clear regulations. Therefore, with USDC being more transparent, the regulated will outperform USDT in 2023
One More Crypto Unicorn to Drop
It is expected that in 2023 one or more Crypto Unicorn will collapse
Uniswap Will Overlap Coinbase Trading Volume
In November 2022, Uniswap registered much more trade than Coinbase. Therefore, in Q4 2023 Uniswap is expected to see more trade volume than Coinbase.
Overall, although the year will see many challenges, the cryptocurrency market will rise and remain in its bull market.
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