There are currently around 1 billion people worldwide who use cryptocurrencies.
Since the invention of Bitcoin in 2009, the world of cryptocurrency has exploded. There are now a lot more cryptocurrencies on the market, various exchanges to trade crypto on, and a range of other technologies that have arisen.
If you want to invest in cryptocurrency, you should stay up to date with the latest trends in the space. Things change quickly, and staying informed will give you an advantage over other investors.
Keep reading for a rundown of some of the biggest cryptocurrency trends to look out for in 2023.
Stablecoin Takeover
People have varying opinions on what the best crypto is, but one thing that concerns many people is the volatility of cryptocurrencies. Stablecoins help alleviates this, as they’re pegged against a stable asset such as the US dollar.
Moving into 2023, stablecoins could be a very good investment choice for many people. The markets have been quite unstable recently, with some cryptos crashing massively. Having finances in stablecoins is a good way to ensure the value doesn’t drop.
The largest stablecoin currently available is Tether, which was also one of the first stablecoins. It has had some issues in recent times though, and as such, other stablecoins may be in a position to take the top spot.
Government Cryptocurrencies
In the past, there has been a lot of resistance to cryptocurrencies from individuals, organizations, and governments. As time has gone by, things have changed, and more people are seeing the value of crypto. As such, several governments have started making plans to introduce their own cryptocurrencies.
China was one of the first countries to move on this with a research group that started looking into it back in 2014. Things stopped after the 2017 crash, but they’ve now restarted this effort.
Other governments are following a similar suit. Many are beginning to view physical cash as obsolete, leading to a larger push toward digital currencies.
Institutional Investors
Over the years, countless individuals have decided to invest in cryptocurrency. Retail investors have been among the largest investors for a long time, but moving into 2023 it seems that more institutions will begin to invest, resulting in huge trading volumes due to the resources at their disposal.
An increase in institutional investors will provide a lot of support to the market, even if the number of retail investors drops. It’s still unclear, however, about how this will happen. Some believe that major exchanges like Nasdaq will enter the crypto space, which will lead to huge boosts in both the reputation of crypto and the value of many coins.
Payment Gateways Integrating Cryptocurrencies
Most people use crypto wallets like MetaMask and Phantom to store their crypto, but things may well change. Regular wallets are starting to support crypto, getting a lot more eyes on blockchain technology.
PayPal announced support of Bitcoin, Bitcoin Cash, Litecoin, and Ethereum in late 2020. This has opened the door for other wallets to enter the space, leading to more mainstream adoption. Being able to use PayPal’s decentralized network to buy and sell crypto provides security and convenience to users.
More Decentralized Exchange Platforms
One of the main characteristics of blockchain technology is decentralization. Bitcoin can’t be controlled or manipulated by any government, organization, or financial institution.
There are various crypto exchanges available, but some are considered more centralized than others. New platforms, such as Check Into Cash, are more decentralized and allow people to purchase crypto with ease. Decentralized exchanges are preferable to most investors, so they will continue to grow moving forward.
Decentralized platforms use no intermediary, allowing users to trade crypto directly with one another. Blockchain technology keeps these platforms secure, and will likely lead to coins like Bitcoin and Ethereum becoming far more popular as standard forms of payment.
STOs to Replace ICOs
ICOs (initial coin offerings) have traditionally been more prevalent on crypto exchanges. These are unregulated, so they present quite a lot of risk to investors. This is one of the reasons there haven’t previously been too many institutional investors in the space.
STOs (security token offerings) are on the rise, and these are regulated by the SEC. They’re less susceptible to issues like fraud and scams. More secure assets growing in popularity is one of the reasons that the number of institutional investors will be growing.
Focus on Social Causes
Social causes are having an impact on the crypto space, much like many other industries. One of the biggest criticisms of crypto mining is that it uses huge amounts of energy, causing environmental concerns.
Various projects are highlighting a focus on environmental consciousness. This is something that more investors are looking towards, helping such projects gain more support.
Many crypto miners are also making more use of sustainable energy for their mining rigs. This allows them to reduce their carbon footprint while saving on energy costs, so it can be very beneficial where it’s possible.
Movement to More Reliable Assets
The market has recently been very bearish. In times like these, people lose faith in less reliable assets. When it comes to crypto, the ones that will lead the market recovery are the ones that have proven themselves more stable.
Bitcoin will stay at the forefront here, as it always has. Smaller cap altcoins won’t attract nearly as many investors until the market is more bullish again. This could lead to many smaller coins failing, but the ones that have the most potential will persevere.
Better Social Engagement in Metaverses
Metaverses have been a very popular trend in recent years, and they continue to grow. As a new concept, there’s still a lot of room for improvement, and one thing that’s missing is a good social foundation.
RobotEra is an example of a metaverse that’s putting more focus on social elements. Users can engage with each other in various environments such as casinos, concerts, and salons.
They can also create their own experiences, and the platform allows people to do this without the need for any coding. Users may even be able to get paid while doing this.
Meme Coins on the Rise
Many types of cryptocurrency have appeared over the years, with more than 12,000 currently available. If you decide to buy crypto, it’s important to understand what the different types are.
One type that has become incredibly popular is meme coins. Some of the biggest include DOGE and SHIB, but there are many others.
These coins are generally built on hype and don’t follow the same trends as other cryptocurrencies. Despite this, some people have had incredible success with them. They’re something to keep an eye on – just bear in mind that many investors consider them to be among the riskiest crypto assets you can invest in.
Focus On DeFi
Decentralized Finance relates to the use of cryptocurrencies and blockchain technology to make payments and transactions without the involvement of any intermediary. This is one of the main reasons for the existence of crypto in the first place, using a public ledger to record all transactions that take place on a blockchain.
Many people are in support of this due to how it differs from how things currently work. All real-world transactions go through banks and financial institutions, giving them complete control.
Ethereum is incredibly popular for this reason. It built the first blockchain that uses smartcontracts, keeping all transactions secure and reliable. DeFi is still in the early stages, but it will continue to develop and gain popularity throughout 2023 and beyond.
NFTs May Not Make a Revival
In recent years, NFTs (non-fungible tokens) have been one of the biggest crypto trends in the world. Despite that, the recent state of the market has caused a huge decline in NFT trading volume.
As we move into 2023, it’s not entirely clear how things will go. A market recovery will be good for many aspects of crypto, but it seems like NFT trading won’t return to the heights we’ve seen throughout 2021 and 2022.
It is likely, however, that the technology will continue to advance, presenting new possibilities. Past 2023 NFTs could still make a big comeback and grow well beyond what we’ve already experienced.
The Importance of Cryptocurrency Trends
The world of crypto grows and changes incredibly quickly. There are various cryptocurrency trends we can observe to get an idea of how things will change in the near future. With that in mind, it’s still very difficult to make accurate predictions, and surprises can come out of nowhere.
The uncertainty of the crypto market can make investing seem daunting. At Truecode Capital, we have years of experience in investing. Using our expertise, we can help you manage your portfolio to optimize your risk and growth with a range of tools. To find out more about our services, click here to contact us today.
