This year is almost done, and uncertainty is waiting ahead for the crypto industry. We didn’t have a good 2022, diving into a harsh crypto winter. However, isn’t our first time, and it likely won’t be the last one either. The new year comes with new promises, and some interesting crypto trends for 2023 are already in development.
As always, we have hopes, fears, and predictions while waiting for the future. This time, the big picture doesn’t seem very favorable worldwide, but we can wait for good things as well. First things first, though. Before considering the future, the past is giving us some useful clues.
Wrapping up Crypto in 2022
- Bitcoin (BTC) decreased by over 64% in 2022, and the total cryptocurrency market cap decreased by over 63% [CMC]. Inflation is rising globally, also affecting fiat currencies. However, some tokens increased this year. The biggest gainer, according to CoinGecko, was Nest Protocol (NEST), a decentralized pricing oracle platform on Ethereum (+243%).
- Numerous crypto companies and platforms went out of business in 2022. In the gloomy list, we have Terra (LUNA), with losses calculated at $40 billion. It follows the crypto fund Three Arrows Capital (- $3.5 billion), and the crypto exchange FTX ($3 billion). The mining company Core Scientific filed for bankruptcy in December. We can also say that Tornado Cash, harshly sanctioned by the OFAC, went out of business this year.
- While crypto mining was banned in several territories, Bitcoin and crypto, in general, were legalized in others throughout 2022. Ukrajina not only legalized crypto but started to accept worldwide donations with it. The Central African Republic made Bitcoin legálny tender, while Cuba and Brazília legalized crypto payments. Additionally, Mexiko, Tonga, Arizona (US), and Saint Kitts and Nevis already have proposals to make crypto legal tender.
- According to DeFi Yield, around $50.9 billion have been lost to crypto hacks and exit scams in 2022. Besides, as SpyCloud discovered, around 90% of companies were hit by ransomware in 2022. For Kaspersky Lab, cryptojacking variants increased by over 230% compared to last year.
Some crypto trends for 2023
- The lows for the crypto winter may yet to come, but they could be followed by a new bull run. That’s, at least, what the investment firm VanEck predicts. For them, Bitcoin (BTC) can decrease to $10,000 in Q1 2023 “amid a wave of miner bankruptcies”. But the first crypto will recover and reach $30,000 in the second half of 2023. Lower global inflation is also expected by the end of the year.
- The billionaire disasters occasioned by Terra (LUNA), Three Arrows Capital, FTX, and other companies, like Celsius and Voyager, aren’t being overlooked by lawmakers worldwide. Among popular crypto trends in 2023, we’ll find tighter crypto regulations —especially about stablecoins and taxes. Europe, Japan, UK, US, Canada, South Korea, and Singapore already have approved laws for it or are working on them.
- More Non-Fungible Tokens (NFTs) and decentralized social networks are coming to town. Despite the sharp decrease in daily NFT sales in 2022 (+77%), NFT-related US trademarks applications increased by over 220% this year, compared with 2021 [Mike Kondoudis]. Those trademarks could lead to new products and services in 2023, including decentralized social networks and metaverses.
- Ransomware attacks will get more aggressive for big companies and organizations in 2023. To the cybersecurity firm ReliaQuest, hackers will pick bigger targets with bigger ransoms in the governmental sector. To Avast, the scams will keep increasing in 2023, including romance scams, COVID-19 scams, and tech support scams. To DarkTrace, cryptojacking could get dangerous, allowing the entrance for more aggressive types of malware.
An important crypto trend for 2023
Especially after the FTX debacle, crypto investors are losing trust in custodial exchanges. An old premise in crypto revived this year more than ever: not your keys? Not your coins. In custodial crypto exchanges, once the coins are deposited, they’re fully controlled by the company behind the platform. Personal súkromné kľúče aren’t provided to users, only a classical account with email and password.
The funds are handled together backstage, and the customers depend on the company to allow withdrawals. That doesn’t happen when you have your own private keys. If a platform or wallet isn’t working for you, then you can move easily by using your secret words. You have full control of your assets.
That’s likely the reason why the number of Bitcoin on custodial exchanges hit a 4-year low in December. At the same time, the amount of coins in self-custody (with private keys) is reaching new All-Time Highs.
Just as an example of the situation, the largest crypto exchange so far (Binance), saw up to $3 billion in customer withdrawals in 24 hours during December. Likewise, the sales of hardware wallets skyrocketed after the FTX fiasco. People are going non-custodial, and this likely will be one of the greatest crypto trends of 2023.
It’s good news: cryptocurrencies were designed to be self-custodial. Since it’s still necessary to exchange for fiat, the best solution is to choose a non-custodial exchange, ako Alfacash. These platforms won’t handle your funds permanently and can offer you a more reliable service.
With this in mind, from the Alfacash Team, we wish you a Happy New Year and a lot of good (and safe) trades for 2023!
Wanna trade BTC, ETH, USDT, and other tokens? You can do it bezpečne na Alfacash! And don’t forget we’re talking about this and many other things on our social media.
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