Cryptocurrency trends for 2023

When fear and panic die down, the market is ruled by caution. Confidence in the sector will gradually return (unless spontaneous and critical bankruptcies await us in the upcoming year against the backdrop of worsening economic and political problems).

Whatever surprises the next year brings, the existing positive trends have every chance of getting new incentives for expansion.

Institutional investment

An ongoing trend picking up after the FTX crash. Despite the bankruptcy of one of the leading crypto companies, Goldman Sachs said it plans to invest millions of dollars in the crypto sector to regulate the industry.

The interest of institutional investors in the cryptocurrency sector has already resulted in the launch of numerous specialized cryptocurrency exchange-traded funds in 2022. A BlackRock ETF is one of them.

More and more investment companies are pouring money into cryptocurrency startups, with DeFi and GameFi being the most popular sectors. This trend can be boosted if leading crypto companies get listed on the NASDAQ exchange (as Coinbase, Argo Blockchain, Hut 8 Mining Corporation did), and crypto depository services will be developed for institutional investors. 

Secure Crypto Assets

In volatile times, people tend to avoid risky assets. Therefore, in 2023, we can hardly expect a strong Bitcoin recovery. However, compared to other cryptocurrencies, it is considered the most secure, so the demand for it will grow. Bitcoin has proven its reliability. Despite the sharp fall, its price remains very high.

In addition to BTC, stablecoins can also become a more crypto trend. Despite the incident with TerraUSD, they have established themselves as safe-haven assets in the cryptocurrency market. Perhaps new companies and market leaders will pioneer this direction.

CBDC

China was one of the first countries to launch its CBDC. Although the project was frozen for some time, in 2020 China finally conducted the first digital yuan tests, and in 2022 the gradual use of cryptocurrency began. Countries that are testing or planning to implement CBDC also include Japan, Sweden, the USA, Ukraine, Nigeria, the Bahamas, Jamaica, the UK, Canada, and others.

Cryptocurrency integration

Over the past three years, cryptocurrencies have been actively integrated with various payment systems, credit card issuers, technology companies, and online stores.

Mastercard and Visa began working with digital assets in 2021, PayPal in 2020, WebMoney and Google Pay in 2022. In the US, large store chain Sheetz, online retailers Newegg and Overstock accept crypto payments. You can pay with cryptocurrencies in Japan, El Salvador, and Europe. Global brands such as Apple, Amazon, Burger King, and Coca-Cola also accept cryptocurrencies. Read more in our article “Which companies and retail chains accept crypto as payment?”.

Therefore, there is every reason to believe that in 2023 the baton of cryptocurrency integration will pass to smaller players.

Environmental projects

The environmental agenda is becoming more and more relevant every year. The transition to green energy is a long-term process, but to attract progressive investors, the crypto industry will have to prove its environmental friendliness. And it has already successfully coped with the task.

Let’s take IMPT, an eco-minded project and a carbon credits marketplace that aims at offsetting the impact of harmful emissions. A carbon credit is a permit that allows businesses to emit a certain amount of carbon or other greenhouse gasses. The project is buying back carbon credits and destroying them. Therefore, by purchasing 1 IMPT coin, a person helps to avoid the release of 1 ton of carbon dioxide into the atmosphere, and as a gift receives an NFT image with the beauties of nature.

We can also add this list with the young American bitcoin mining farm TeraWulf. The startup uses energy sources for mining that have a low carbon footprint. This allows to mine cryptocurrency with no harm to the environment.