Table of Contents
To say 2022 was a challenging year for cryptocurrency would be an understatement. A bleak global economic situation led to a significant decline in both demand and cryptocurrency valuations.
But it's not all gloom and doom and doesn't tell us the whole picture. 2022 has been a great buying opportunity and loads of savvy investors have bought the dip. And that's not all.
The development of the metaverse and blockchain-based applications is progressing rapidly, providing users with more and more opportunities to maximize their cryptocurrency investments. In short, the crypto space has been full of opportunities in 2022, and that's set to continue into 2023.
So, we've put together a list of the top crypto trends for 2023. Five major trends are emerging in the industry that spells one word: Opportunity!
Read on to find out more.
New Generation of Crypto and Blockchain
The development of third and fourth generation blockchain systems is the first change we will see in 2023. Third generation blockchain platforms like Cardano and EOS will employ sharding to decrease transaction fees and boost transaction speed. And these are the two factors that will undoubtedly attract more and more buyers to join them by choosing the best crypto to invest in.
Fourth generation blockchains aim to improve trust. Innovative fourth generation blockchain solutions, including Insolar and Aergo, hide the difficulties of the underlying blockchain technology to make business networks easier to use. In addition to making the implementation of the system simpler, they will accept realistic compromises, such as recognizing that not all transactions based on consensus are created equal.
The latest innovations in blockchain and cryptography aim to remove limitations on both speed and scalability. They'll make setting up, managing, and changing over business networks much quicker.
Stablecoins Will Alter the Crypto Ecosystem
Stablecoins will be a major development in the cryptocurrency market in 2023. Stablecoins are growing in popularity even though the most well-known of them, Tether, has its own legal issues. The stablecoin market is forecast to be worth roughly $150 billion.
There is concern that the widespread use of stablecoins might usher in unchecked speculation in volatile private currencies. Central banks, on the other hand, are releasing their own digital currencies to stay ahead of the curve. At least eighty percent of the world's central banks are now investigating the use of these tokens, which are referred to as "central bank digital currencies" (CBDCs).
The Rise of DeFi, Yield Farming and Booming TVL
The introduction of DeFi (Decentralised Finance) apps has perhaps been the single most talked-about topic in the crypto space. Standard financial dealings are transferred on the blockchain under this approach. Generally speaking, the utilization of smart contracts is what makes these transactions possible.
In addition, no middleman is required, unlike conventional payments and transfers. Typical DeFi deals might include everything from a simple loan to the creation of a complex derivative.
According to research carried out by DeFi Pulse, the Entire Value Locked (TVL) increased from $2 billion in value to $15 billion by the year 2020. Additionally, TVL exploded in 2021, reaching an all-time high of about $100 billion by the year's end.
Moreover, the "yield farming" of cryptocurrency has emerged as one of the most popular uses of DeFi in recent years. This term refers to the process of lending cryptocurrency to other exchanges in exchange for interest or more cryptocurrency. The concept of farming yield is superficially similar to banking, where both allow users to deposit crypto assets and earn interest on those deposits.
Environmental Effects of Crypto
The carbon effect of the Bitcoin industry has gained greater scrutiny as its popularity has increased. Mining for bitcoin needs powerful computers to work together to solve difficult mathematical problems, and if these computers aren't fuelled by renewable energy, they contribute to global warming.
Did you know Bitcoin mining uses more energy than the energy used in Sweden throughout the year?
There is a serious environmental risk due to cryptocurrency, which has led to the development of "greener" blockchains that use a portion of the energy required by older, more conventional systems like Ethereum. This trend should drive the industry forward in 2023.
Tightening Regulations
Experts agree that rules and regulations will be crucial for the cryptocurrency market in 2023. Notable crypto-related legislation from 2022 includes China's prohibition of all crypto-related businesses and the U.S. government restricting some market aspects. The DeFi sector has also drawn the attention of authorities.
To manage the cryptocurrency market's inherent instability, authorities will ramp up their efforts in this sector. Regulations will reduce the criminal exploitation of cryptocurrency and keep an eye on crypto predators. Bitcoin prices seem to be the first to be affected by regulatory pronouncements in a volatile market.
Overall, regulation could mean opportunity in the crypto space. Regulation is intended to protect investors and maintain financial stability while promoting innovation in the crypto space.
Bolide - Yield Farming Done for You with Awesome APYs
With companies such as Bolide.fi, you can start with any amount and invest in a vast range of staking and farming options while choosing a risk strategy that best suits your risk appetite. Even better, there's no lock-up period, and you can get APYs of up to 30%!
Here are some of the benefits of investing with Bolide:
· Low-risk, market-leading yields of up to 30% APY
· Earn an extra 20% staking your BLID tokens and enjoy 11% APY on farming
· Start investing with any amount
· Hands-off, passive automated investments using your stablecoins
· No lock-up period access your funds and profits instantly
· No withdrawal limitations
Starting your yield farming and staking journey is easy with platforms like Bolide. Simply visit www.bolide.fi, connect your crypto wallet, deposit either $USDT / $USDC / $DAI / $BUSD, BT, or ETH, and you're good to go.
Start earning interest at the speed of light with Bolide today!
For more information on generating a passive income on your cryptocurrency investments, visit Bolide.fi
