The Top 5 Crypto Predictions for 2023

After reaching a peak market cap in 2021, crypto and the stock market alike dove in 2022. The industry was hit with macroeconomic conditions such as the Fed raising interest rates, and spectacular failures amongst centralized crypto enterprises.

Looking ahead to 2023, we may be able to prepare for a couple of scenarios to play out based on the current global perspective. This article will highlight the top 5 possible crypto predictions for 2023; mainly consolidation, regulation, innovation, education, and adoption.

What’s next for crypto in 2023?

Before we dive into the predictions, it is worth noting that 2022 was filled with hard lessons and that with great adversity comes innovation. After all, the Bitcoin genesis block was launched after the 2008 financial crisis, sparking the cryptocurrency movement.

Despite being a contested opinion, it is still worth repeating that “Bitcoin does not fix everything.” Nakamoto’s white paper and the launch of the Bitcoin blockchain were just the beginning.

Since then, countless innovations have emerged from the cryptocurrency community. These include Ethereum smart contracts, the creation of non-fungible tokens, and decentralized cryptocurrency wallets and exchanges. 

Before the Bitcoin blockchain, none of the above protocols, projects, and products existed because there were no use cases for them. Now, as we try to predict the future of blockchain in 2023, we foresee the following five general trends which could possibly emerge. 

Crypto Prediction #1: Consolidation

A period of consolidation can sometimes be seen by traders as necessary for the market since the hype we saw in 2021. In addition, due to the macroeconomic conditions of a looming recession, we may not be able to expect a fervor of activity in the very near future.

During a bear market, crypto companies buckle down and build. Undistracted by price rallies, they form partnerships and begin creating the next generation of products and features to pre-empt the next bull run and flurry of activity. 

Unfortunately, due to recent events, not all cryptocurrency and blockchain companies will survive the 2022 crypto winter. We all have high expectations over the long term but, in the interim, crypto investors and users alike could well prioritize securing the digital assets they have; aka "hodling."

Consolidating and strengthening

Crypto Prediction #2: Regulation

With the recent unraveling of once-revered crypto exchanges and lenders, many experts predict the industry will come under heavy scrutiny from regulatory authorities. 2023 could be the year to expect governments to start putting more legislation in place for centralized entities. This could see a lot more people turn to a decentralized one-stop shop solution in Orion Protocol, which combines the top CEXs and DEXs into one place.

Based on 2022's colossal collapses, there could be a possibility of regulatory policies to emerge that zero down on the use of centralized crypto exchanges and stablecoins. Another regulatory area to watch out for is the sanctioning of privacy blockchains by the US government.

As the industry works its way through the current consolidation phase, it may or may not attract more investment from traditional financial institutions. These institutions are risk-averse but it is possible to expect their increasing participation as regulations and general adoption progress.

Crypto Prediction #3: Innovation

After the 2017 bitcoin bull run, we saw the birth of Decentralized Finance (DeFi), which introduced a new way to leverage blockchains amongst the major crypto projects and beyond in the crypto space.

The 2020 cryptocurrency crash and rebound lead to a boom in NFTs and NFT Gaming in 2021. NFT collections presented new opportunities for creativity, value, prices and investment, and NFT Gaming allowed more opportunities for people to earn while they play.

Looking at 2022, DeFi suffered a lot of hacks, and NFT prices dropped to all-time lows, with the biggest NFT Game, Axie Infinity, hacked for $600 million.

While there is no crystal ball to foresee the next alpha project (like Ethereum or Bitcoin), we can expect projects to arise that solve persistent issues in the community. For 2023, we can expect projects that secure DeFi protocols, and NFT games with more robust in-game economies.

Perhaps most importantly, we should see the rise of DEXs that prioritize security, are globally accessible, and have deep liquidity, such as Orion Protocol's liquidity aggregation technology. Unification of crypto's fragmented chains and protocols is a priority that addresses the broader needs of both the collective market, investors, and users alike.

Combined liquidity from the largest CEXs and DEXs in one order book on Orion. Connect with your own wallet.

Crypto Prediction #4: Education

As we have seen from the events in 2022, there is a general lack of understanding surrounding the term ‘not your keys, not your crypto.’ As more projects launch and regulations are enacted, there will be a great need for digital asset education amongst crypto currency tokens and coins.

In 2023, we could perhaps expect more universities and higher education institutions to start offering blockchain and cryptocurrency courses. The crypto market has become all too used to "crypto experts" that preach their latest price speculations on YouTube. Whether it's July, October, November or the end of this year, there could be focus placed on real education of blockchain technology instead of volatile market sentiment.

Cryptocurrency education

Crypto Prediction #5: Adoption

The fifth and final prediction is that a combination of regulatory clarity and grassroots movements may push adoption to all-time high usage. In 2022, we have already seen impressive (although still beleaguered) bureaucratic progress on the subject of digital currency along with rapid crypto and bitcoin adoption in Southeast Asia and Africa.

That being said, North America's short term and general rate of adoption has also been impressive. The United States remains high on lists of relative crypto adoption and has become one of the world's most significant locations for Bitcoin mining. Since the exodus of crypto miners from China, the miner market has seen rapid innovation in the USA.

Building with Bitcoin

While 2021 saw the first country, El Salvador, adopt Bitcoin, 2022 saw the Central African Republic follow suit to help solve its own economic challenges. In 2023, more small countries crippled by traditional finance are expected to do the same, especially after much speculation in 2022.

Gearing up for 2023

While these predictions are merely general possibilities, they are based on trends potentially seen emerging in previous years. Innovation in the space has demonstrated that we have much development to expect in 2023 within cryptocurrencies and other trading assets.

Investing in Bitcoin and Ethereum is no longer considered taboo. Hedge funds and other financial institutions consider Bitcoin an asset on their balance sheet and therefore decide whether its price and value would rise in the future like any other rare commodity.

Expect the unexpected

2022 saw drastic lows, and some coins/projects completely disappeared from the ecosystem. However, the future remains bright. While no one can give you exact predictions, even an average for the end of 2023, some traders believe Bitcoin may well settle with its volatility (if it hasn't already done so).

With Bitcoin's next halving expected in April 2024, 2023 may be a good year to remain patient and build on your foundations. As we come to the end of 2022, Orion Protocol remains one of the most comprehensive solutions for decentralized trading and management of your digital assets in 2023 as it enables users access to decentralized trading with your own wallet and global access.

Disclaimer: This article does not in any way constitute financial advice.

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