Cryptocurrencies have seen a dramatic fall from their former position as the “rising star” of financial markets. A recent analysis found that, in 14 months, all digital currencies had experienced an incredible 74% drop in total market value – declining from over $3 trillion to make it above $795 billion barely. This staggering downfall has led many to fear what’s next for this volatile sector.
Despite the wild swings of crypto markets, its dedicated enthusiasts remain steadfast in their commitment to digital currencies.
So what new trends will shake up the world of cryptocurrency come 2023?
Experts make some bold predictions: from increased institutional investment and government regulation to a growing demand for privacy coins and an age where blockchain technology powers our lives.
Let’s dig deep!
Shiba Inu and Dogecoin will Shed 50% of their value
The beginning of 2021 brought exceptional success to the cryptocurrency markets, with Shiba Inu and Dogecoin leading the charge.
Enjoying respective gains of 121 million percent and 20 thousand percent in only 10 months, these “meme tokens” reached near-unthinkable heights before Elon Musk’s much-anticipated appearance on Saturday Night Live as none other than the “Dogefather.”
With no signs that market activity will slow anytime soon, one can’t help but anticipate what incredible feats lay ahead for crypto this year!
But the tables will soon turn!
Shiba Inu and Dogecoin have seen precipitous drops of around 90% in value since peaking, a trend that looks certain to continue into the next year. This outcome may be due to their relative lack of novelty; after all, with thousands of payment options out there, it’s hard for any one coin to stand out on its own merits as something truly special.
It is pertinent to quote one of the biggest crypto investors, Carl Runefelt, predicting the future of altcoins. While speaking on his YouTube channel, The Moon, he said, “I would also say that, of course, you can diversify into other coins as well. Personally, I have bought a bunch of other coins that I hold in my portfolio, and I think some diversification is fine, but in the bear market and even in the bull market, I always think that you should have the vast majority of your crypto portfolio.”
Ethereum is Set to Surpass Bitcoin (Briefly)
It’s a bold prediction, but it can actually happen: Ethereum surpassing Bitcoin and becoming the largest cryptocurrency in terms of market value! It’s something that has yet to be seen, as traditionally, digital currencies tend to follow each other closely.
However, with stocks facing challenging times and an unsure economy looming on the horizon, maybe now is finally our chance for cryptocurrencies to push beyond traditional boundaries toward individualized growth opportunities!
Bitcoin may still be the crypto-king regarding perception, thanks to its token scarcity fueling lofty value per coin. However, if real-world utility matters more than prestige, Ethereum’s growth speaks volumes! Over 7 years, while Bitcoin remained static in daily transactions completed, Ethereum skyrocketed from 40K a day up to an impressive 1 million plus during 2020 and 2021.
Ethereum has emerged as a powerful force in decentralized application development and has generated an impressive $3.8 billion in revenue over the past year alone – miles ahead of any other dApp protocol on the market! From payments to innovative applications, Ether tokens have become integral to our digital world and continue to drive progress with each passing day.
Another Major Crypto Exchange will Collapse
In a startling turn of events, FTX founder Sam Bankman-Fried and his team are now suspected of having carried out one of the largest financial deceptions in history. What began as an ambitious venture with talk of newly leased office space quickly spiraled downwards when they sought nearly $9 billion in funding just two days later.
Despite their best efforts, the available assets proved too little to cover back their liabilities, leading to bankruptcy protection being filed against them – rendering the previously cherished FTX Token (FTT 5.60%) utterly worthless overnight.
Crypto companies are feeling the squeeze. Accounting giant Mazars has recently announced that they will be halting services to some of their top crypto clients, including Binance and Crypto.com’s Cronos token project – a sign that this may become an ongoing issue for digital currency projects in the future.
With FTX becoming increasingly popular among traders, it appears these warning signs could not have come at a worse time for cryptocurrency businesses today.
