The year 2022 for the cryptocurrency market has been a total roller coaster ride with many major price drops, scams, and hacks, as well as many companies going bankrupt. Now, as the year 2023 begins on a positive note, new hope has sparked among investors and traders. However, “Is this the beginning of a new crypto bounce or another bubble?” The question is still circulating.
Will 2023 be the year of cryptocurrency?
That said, it’s a known fact about crypto obscurity. However, a team from Bitwise Investment has made 10 predictions of what we can expect in 2023.
In 2023, the crypto market will be u-shaped
The market started 2023 in the recovery phase. With the convergence of Ethereum, the benefits of Layer-2 solutions, Shibarium and other new upgrades listed, the report claims 2023 will be on the rise.
Fast cryptocurrency transaction will come true
Increasing Layer-2 solutions and Ethereum is scheduled to be upgraded for this year. This will reduce the transaction cost by 1000%. In this process, the cost is expected to be below 1/10 percent. Also, this will see a new era in the financial world led by the crypto market.
Coinbase market cap will increase by 100%
Although Coinbase’s stock fell 86% in 2022, the company’s revenue rose from $520 million in 2018 to $3.3 billion in 2022. According to the Bitwise team, Coinbase, which has the largest installed user base, will make a comeback when the crypto recovers.
Shanghai upgrade will increase ETH staking
The Shanghai Upgrade, expected to take place in 2023, will allow stakers to withdraw their staked ETH. However, the report claims that Ethereum will limit the amount of ETH that can be withdrawn, which will increase staking by 50%.
Demand for Ethereum network will increase
As Ethereum transitioned from PoW to PoS, the new ETH that Blockchain created every day dwindled. Now that ETH has fully migrated to PoS, the network will see increased demand.
Crypto and stock correlation will drop below 0.5
The cryptocurrency market follows stocks. The report claims that this correlation will drop below 0.5 by 2023. This is because the team believes the crypto market will depend more on crypto-related factors such as regulations, escalation and much more.
Cryptocurrency regulation in the US Congress
Pat McHenry (R-NC), a crypto advocate, leads the House Financial Services Committee. This is why there may be at least one crypto regulation in 2023.
USDC will surpass USDT
According to reports, 2023 will see investors seeking transparency and clear regulations. Therefore, due to USDC being more transparent, it will surpass USDT in 2023.
Another crypto unicorn to be destroyed
2023 is expected to see one or more crypto Unicorns crash.
Uniswap will cover Coinbase’s trading volume
In November 2022, Uniswap recorded significantly more trading volume than Coinbase. Therefore, in Q4 2023, Uniswap is expected to see more trading volume than Coinbase.
2023 will be a slow accumulation year for crypto
cryptocoin.comAs you follow, investors and traders are looking for important signs that the market has come out of a bear cycle and entered a bull run, even though prices in the cryptocurrency market showed strong gains over the past week. Santiment, a blockchain analytics company, tweeted a crucial indicator linked to the largest cryptocurrency market participant, which previously served as a harbinger of an upcoming bull run.
Guy Turner, renowned analyst at the Coin Bureau, claims in an interview with Benjamin Cowen that the crypto space will witness cryptocurrencies emerging from the current bear cycle. Guy expects this recovery phase to begin in the late July-September or October-early December quarter. But Guy says currencies will first hit local lows before crypto assets begin their recovery journey. He predicts cryptocurrencies will hit new local lows anywhere before April.
Guy argues that 2023 will be known as the ‘slow accumulation’ year, and it doesn’t look like an extraordinarily interesting year for the market. Therefore, it warns investors and traders to exercise caution before making any decision regarding trading.
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