Which cryptocurrency is best to invest in next year? What will be the top crypto ecosystems in 2023?
Discover our top 5 cryptocurrency trends for 2023, from rising institutional adoption to the threat of Central Bank Digital Currencies (CBDCs).
1. CBDCs rise in major economies
According to the Atlantic Council, over 110 countries representing more than 95% of the global GDP are exploring CBDCs.
Of the major economies worldwide, China has the most developed CBDC, while the UK, the US, and the European Union are increasingly researching its potential implementation.
We expect this trend to continue in 2023 and onwards, with more control and oversight of transactions with the introduction of the digital euro and digital dollar.
Currently, 19 of the G20 countries are exploring a CBDC, with most advancing into pilot stages, while ten countries worldwide have fully-fledged CBDCs.
2. Institutional adoption will continue to rise
In 2022, despite the bear market, data revealed that institutions continued to accumulate crypto, with leading financial institutions looking at crypto startups for potential M&As or investments.
In 2023, even if the bear market continues, institutions will collect the leading digital assets at low prices, investing for the long term.
The crypto venture capital scene will play a part in this adoption, with crypto startups receiving more sensible valuations with similar levels of funding to the last two years.
3. The Metaverse grows
The Metaverse will continue to grow and expand into mainstream awareness in 2023, with major countries setting strategies to grow this industry.
For example, Dubai has launched a global strategy to become a Metaverse hub while more countries, from the US to China, are heavily investing in it, while companies are exploring use cases.
Play-to-Earn gaming is one of the fastest growing areas in crypto, leading the Metaverse to become more popular, while, in 2023, this trend will become even more ubiquitous.
4. More crypto regulations across countries
In the aftermath of crypto collapses in 2022, from the FTX fallout to BlockFi bankruptcy, US and EU regulators are looking at new rules to offer more investor protection.
In the UE, MiCA regulations are set to bring more control, oversight to crypto providers, and protection for investors, with some EU members claiming that it could have prevented some of the losses from the FTX situation.
In the US, several rules are under discussion to increase the regulation of digital assets to bring clarity to the market. Across the world, from Dubai to Brazil, new rules are coming to increase the retail and institutional adoption of crypto in a controlled environment.
We expected new regulations to be one of the top cryptocurrency trends in 2023 as the industry needs maturity and clear guidelines to grow.
5. A cycle bottom for leading digital assets
With the scenario of more inflation worldwide in 2023, followed by rising interest rates, the crypto bear market may see a cycle bottom, alongside equities, next year.
Ahead of the 2024 halving event, we expect 2023 to be a year of new lows for the major digital assets, representing a long-term opportunity for investors to accumulate more coins.
Disclaimer: All the information provided above is for informational purposes only and should not be considered as professional investment, legal, or tax advice. You should conduct your own research or consult with a professional financial advisor when investing.