It’s a new year and the crypto winter appears to be thawing out thanks to some creative minds in the market. There are a lot of exciting projects making waves already in 2023. These platforms push the boundaries of blockchain technology to improve efficiency and streamline business practices. Here are some of the main things you can expect in 2023 as the crypto winter begins to melt away.
Crypto Winter
The term crypto winter refers to bear markets. These are times when entire sectors of the industry lose value. Notably, there have been other crypto winters that have ended with a return to bull markets. As such, savvy traders adjust their strategy to make due during these times and still earn rewards for their efforts.
Unfortunately, there were a couple of key events that altered the course of the market last year that are worth mentioning. These moments caused the market to shift course and values to drop further. The two biggest occurrences in terms of market losses were the FTX and Luna/UST crash.
FTX Hack
The FTX exchange was the fourth largest in the world when it suddenly filed for bankruptcy. The exchange had been valued at over $30B in January 2022. However, it turns out the books were a little cooked as the majority of FTX’s reserves were in its utility token. As such, when faith in the project began to dwindle, the entire exchange went down the tubes.
To make matters worse, there’s around $2B in missing funds that belong to customers. Investigations revealed that the exchange developers were actively funneling money out to fund other projects on the side. As these projects continually failed, it eventually was too much of a drain on the exchange. Sadly, this story caused a hailstorm of bad press for crypto which has sent the market into 2023 in defense mode.
UST LUNA
The other incident that must be touched on is the UST/LUNA crash. Whenever a stablecoin fails it can be just as devastating as an exchange failure. Stablecoins are supposed to leverage reserves to avoid volatility like normal cryptocurrencies. However, there are many instances when these tokens fail to keep their pegged value.
Luna fell from its peg and never recovered after a crypto bank run occurred on the token. Investigations revealed that a whale trader sold 5% of their tokens overnight which caused the network to lose 94% of its value. People woke up with their entire holdings devastated during this and the previous incidents.
Healing and Growing
The first step for the crypto market is to continue the healing process. Whenever users experience major losses there is a grieving period that is usually followed by some sort of regulatory pushback. In this instance, there are already several lawmakers up in arms about the loss of billions in customer funding. Regardless, there is so much more to the market than these two platforms.
So Much to Look Forward To
When you zoom out and take a look at the big picture of the market, you realize that the crypto space is more active than ever. Blockchain technology is integrating into many facets of your daily life from business to entertainment. Here are just some of the reasons why the crypto winter will thaw before you know it.
More NFT Integration
NFTs are a hot topic for good reason. This industry started as collectible games and now encompasses billions in digital assets. NFT technology is also improving. There are NFTs in use in the art, business, and gaming sectors. These unique digital assets can improve record-keeping, and logistics, and provide a more transparent alternative to the status quo.
You can expect to see NFTs make strides in the gaming and art sectors further. Artists enjoy additional benefits when they leverage NFT technology. They can sell their digital works as one-of-a-kind pieces. Additionally, buyers can easily verify the authenticity of works which makes the purchasing process ideal.
Safehaven Assets
Last year saw the emergence of a new type of stablecoin called safe-haven assets. These tokens leverage reserves like stable coins but introduce additional protections. The most popularsafe-haven token today is the META 1 Coin. This digital asset protects both asset value and decentralization.
META 1 Coin
META 1 Coin is a pioneer in the market as it leverages an anti-whale mechanism and asset value protection systems. The token requires all trades to meet the token’s asset value. This strategy ensures that the token doesn’t collapse like UST. Additionally, the developers have introduced restrictions on who can hold META 1 Coins.
The META 1 Coin project began when Robert P Dunlap decided he had seen enough miss treatment of the average citizen. He researched what was the major drawback to success for most people and he determined it to be a skewed system. He then set off to create an open, transparent, and stable alternative.
Gold-Related Assets Support Value
The META 1 Coin retains value because it leverages a basket of gold-related assets as reserves. This strategy provides multiple benefits including self-appreciation and protection against gold volatility. In addition to these stability protections, the token has an anti-whale manipulation system in place.
For example, no corporations can own or trade META 1 Coins. This approach ensures that the network avoids pump-and-dump schemes. It also bans hedge funds from trading the token. The goal of these restrictions is to ensure that META 1 remains a community-led project as it grows and becomes adopted by the masses.
Smart Staking
You can look forward to more smart staking projects in 2023. Smart staking systems issue you a token that represents your value staked. Smart staking tokens adjust as your holding increase or decrease. This approach eliminates one of the biggest drawbacks to staking, a lack of liquidity. Users can farm, trade, and even double stake these assets to further returns.
Staking systems are getting more original. There are now no lockup staking systems that enable you to remove your liquidity without taking penalties. This ingenuity has led staking to be a popular feature for the DeFi community. Even Ethereum switched to a Proof-of-Stake network last year.
DeFi Goes in OverDrive
You can look for DeFi to kick into overdrive in 2023. There are already so many options and features. The best platforms will continue to grow, while the rest will eventually fade away as the market grows. When you combine features like safe-haven tokens like META 1 Coin and high-yield savings accounts, anyone can secure 10% APY withoutthe risk of losing their original asset.
GameFi Is Coming
GameFi is the combination of Play-to-Earn games and DeFi features like farming. These technologies continue to merge because they fit together so well. You can see players already enjoying the passive income afforded by DeFi options. Also, there are more and more titles coming out with NFTs that can be staked or farmed as part of this movement.
GameFi is finding a home in the metaverse as well. You will soon find more areas in this digital landscape to secure passive rewards by providing liquidity to smart contracts or pools. The gamification of financial services has also helped the younger generation get more involved in the digital economy.
CBDC Lay Crypto Foundation
There is a storm of CBDCs (Central Bank Decentralize Currencies) entering the market in 2023. These digital currencies leverage the efficiency of blockchain like Bitcoin but they are not open. Instead, they are meant to supplementthe traditional fiat currencies of the world.
Already, China has launched billions in digital Yuan to its citizens with great success. The advantages of CBDCs for banks are obvious. They are cheaper to issue, monitor, and transfer. For citizens, there are some downsides, as there is a possibility for abuse because all of your financial actions will be monitored in real-time.
The silver lining about CBDCs is that they will help to normalize blockchain assets and lay the foundation for other systems to operate. Once the foundation is set for digital assets, it will be much easier to onboard new users and convert people to open blockchain assets. As such, many see CBDCs as a double-edged sword.
Cross Chain Assets Blossom
You should also prepare for more cross-chain assets to take flight. As more DeFi ecosystems expand, there are now emerging cross-chain assets that function across different networks and metaverses. Think of a game NFT you can bring into different titles. These assets will empower gamers to secure more returns
More Crypto Remittance
Another trend that will most likely expand in 2023 is crypto remittance payments. Remittance is on the rise globally. This term refers to payments sent from migrant workers abroad back to their countries of origin. There are billions in remittance payments made monthly. Remittance accounts for almost 4% of Industries’GDP.
The current way of sending money is antiquated. It takes a long time and requires toomany parties and costs. As such, there has been a drive to integrate more blockchain alternatives into the market. These systems leverage the instant consensus of a decentralized network to provide a higher level of efficiency.
A Low Cost Alternative
For example, you can send millions in META 1 Coin globally for a fraction of the cost of sending a thousand dollars internationally in fiat currency. The main reason that blockchains are so much cheaper is that they operate in a direct peer-to-peer manner. There are no middlemen.
A traditional remittance payment can have as many as 36 different third-party groups and regulators look at it before it completes. You have payment processors, vendors, banks, regulators, and the list goes on. Sadly, each step costs the families depending on those remittance payments to survive. As such, blockchain remittance will increase in 2023.
More Crypto in Government
There are a few ways that you will see more crypto in government. For one, you can expect to see more blockchain integration into the record-keeping departments of government agencies. Blockchains are far more secure and provide the ideal set of features for large-scale record-keeping operations.
Already, nations are integrating blockchain-based land registry systems. You can expect to see medical records migrate to blockchain-based systems as well due to their added security and transparency. These systems could integrate with logistics systems to help reduce counterfeiting and fraud in the future.
Push for More Non-Custodial Exchanges
Following the collapse of FTX, there has already been a drive to educate people about the benefits of non-custodial exchanges. These networks enable you to operate trade directly from your wallet. This approach is safer than uploading your crypto to a third party. As such, more traders are using non-custodial DEXs like the META EXCHANGE daily.
Crypto Banking
Another cool option that you can expect to take flight in 2023 is crypto banking. Already, there are options like the META VAULT that enable users to secure 10% APY by holding their assets. These systems are designed to mimic traditional bank accounts. As such, they are easy to learn and new users can start earning returns immediately.
More Integration with Vendors
Another major plus for crypto users is the introduction of more payment options. There are already more payment processors than ever. Now there are even crypto debit cards. These cards operate like regular debit cards and are accepted at both on and offline retailers.
The magic happens behind the scenes. These systems are set up to convert your crypto into fiat currency at the point of sale. Keenly, the vendor receives fiat currency. The process is seamless and they’re unaware you even used a crypto account. Notably, the META VAULT MasterCard provides these services to the market.
Mobile Payment Options
There is sure to be more push towards mobile devices for all sectors. You can expect to see more smartphones support crypto assets. There may even be some with built-in cold wallets in the coming months. These features will take some time to be real draws for users, but they will provide value for those already in the sector.
2023 – A Bright Crypto Year Ahead
When you look at all the advancements that are coming to the market in 2023, it is safe to assume that blockchain technology will be even better positioned at the end of this year than last. The main thing to remember is that the crypto market is still growing and you’re at the forefront of the digital evolution.