Will 2023 be the year of cryptocurrencies ? After last year’s turmoil, what trends will affect the market this year?
One trend is the drive for transparency. Cryptocurrency exchanges and companies will make their practices more public and transparent so that the public can regain trust in the industry.
NFT Development Company Some prominent players ( Binance , Coinbase , and others) have started posting their proof of stocks. If nothing else, 2022 has proven that this is a MUST HAVE.
As inflation continues to ease, investors will have more disposable income. If they choose to invest it in crypto, one could see the crypto winter slowly dissipate. In fact, at the time of writing, the cryptocurrency market capitalization was just below the $1 trillion mark, and Bitcoin has crossed the $21,000 mark.
Probable corporate adoption of NFT
Last year, the focus was on NFT Profile Pictures (PFPs). But they have given rise to a wave of competition that has caused severe oversaturation. This, combined with a drop in trading volumes on the NFT markets , has further created a sense of apathy in the NFT space.
Only specific top notch collections, such as CryptoPunks , have managed to maintain their starting ETH prices. The bottom of the dollar also fell with the collapse of the prices of cryptocurrencies in general. However, the focus on collectibles and art should be on the incredible utility of more general NFTs.
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The Beginning of the Transition
“Tokenizing” these tangible real-world assets makes buying, selling, and trading more efficient while reducing the likelihood of fraud. NFT Development Solutions Examples include Starbucks’ NFT loyalty program, Adidas combining NFT with physical items, the New York Knicks offering NFT to ticket holders, and Reddit’s Avatar NFT. This NFT enterprise adoption trend is expected to increase in 2023. Furthermore, with the proliferation of Layer 2 solutions like Polygon, NFT enterprise adoption will only increase.
NFT Development Service Coins highlights three trends that will impact the cryptocurrency industry in 2023. Among them are evidence of crypto companies’ reserves and transparency, a growing need for cryptographic tokenization of securities, regulation, and new applications for NFT technology.
2023 will have a lot to do with transparency for cryptocurrency companies, he says. First, any centralized platform will need to show that it knows what it is doing by displaying its pool of funds.
“Companies will need to prove they are legitimate and we could see some promising consortia of companies playing by the rules. There could also come an independent group of people who will impose some unofficial regulations for companies,” he said.
The second trend is regulation. It’s becoming a big topic everywhere now, starting with the developments in Europe. This can be good for existing companies, but it could make things difficult for new companies because it is proper financial regulation. “Basically, for any new business coming into a centralized space, this would be something they have to meet before they can provide any services to the public or businesses,” added.
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New era for NFTs
Finally, the next crypto spring could be devoted to security tokenization. “People will use their Web 3 wallets to own physical things. This is what we have achieved with stablecoins because, in a sense, they are already tokenized securities.
The question remains how they will be regulated or verified. “It could be the next big wave: owning physical assets by owning tokens of these assets. It may also have space for NFT, but slightly revised, “he added.
“For most people, NFTs are now just art. I don’t think this is the best use of NFT technology. When we can own a piece of land, a house, a car, or just real estate, people will understand the actual use of these blockchain things. Many people are skeptical of cryptocurrencies and blockchains because they don’t see what they bring to the world and the problems we are solving.”
Luxury and sports brands are jumping on the NFT bandwagon despite crises last year. However, such adoption can increase the potential attractiveness and utility of non-fungible tokens.
