Top Ten (10) Key Predictions For The Crypto Industry In 2023

In addition to the culture war around blockchain, blockchain adoption is expected to increase in the coming year.

This has been a particularly tumultuous year for the crypto market, with many decentralized and centralized entities failing or struggling to stay afloat. We feel as if we are in the final stages of a bear market where bad actors and bad behavior are being removed, a process that is both dramatic and necessary for the maturity of the system as a whole. Nonetheless, the emergence of Web3 technology in the midst of this crypto winter will change everything.

Web3 represents the next evolution in information exchange, with parallels to the shift from an agrarian to an industrialized society. It is a computing architecture designed to put humans at the very center and prioritize privacy. Blockchain technology will lead to a new way of interacting with the Internet and will fundamentally change the way we interact with others. As we move into the future, here are some predictions of what we can expect to see on the other side of 2023

Here Are The Top ten (10) Predictions

1. Crypto venture capital funding will continue to decline in the first half of 2023, but that's not necessarily a bad thing; instead, it will normalize to a level of sanity. Investors don't want to experience a decline, so they are weighing broader macroeconomic concerns and global recession risks while waiting for the bottom to be hit. In the meantime, new settlement layer 1/layer Interoperability (layer 0/cross-chain bridges), lending and trading agreements will continue to receive funding to fill the gaps created by recent hacks, funding shortfalls, regulatory changes and exchange collapses.                                                         
2. In 2023, the Web3 anarchist mindset that initially opposed the big brands will disappear. Participants will eventually realize that when there is no external funding from big brands, then all you have is a token whose only value comes from user and speculator funding. Instead, projects will embrace big brands and the advertising, marketing and sponsorship dollars they bring in so that the Web3 dream (tokens representing micro-equities) can be realized by distributing meaningful external capital among actual users. web2 brands - such as Nike, Starbucks and Meta--will continue to experiment in Web3, continuing to focus on non-homogenized tokens (NFTs) as the preferred format and emphasizing customer acquisition and engagement rather than. monetization.                              
3. People will realize that many people have always thought of the Web3 community as nonsense. "Community" is usually just a cute word used primarily to describe "a group of speculators who share a common dream of getting rich quick in Discord and will abandon the project once the carousel of growth stops spinning." While we will continue to see exceptions to the rule - such as strong decentralized financial communities, and decentralized, autonomous organizations like LinksDAO that go online to offline - we will realize in 2023 that the entire Web3 project/ The ideal of community fit is usually just project/speculator fit. Therefore, we cannot ignore the fundamentals of actual product/market fit.                           
4. Quality and exposure will become the focus as Web3 app development costs fall and user acquisition costs rise. web3 will have its own App Store and AdMob moment, which will help developers and users find each other more efficiently. 11 and wallet will initially compete for this spot, but new players may take over. breakthrough Web3 apps in 2023 will be more like the most downloaded and highest-grossing apps of the early days of mobile - simple user experiences and graphics with intuitive but innovative stickiness and monetization mechanisms - like Angry Birds in 2009.                                     
5. The current trend toward "stability" and "sustainability" in games - caused in part by the impact of Axie Infinity --will spawn a wave of products that have inherent stability but lack the boom-and-bust nature of most crypto speculative dynamics. This will create a bland player experience that resembles a cottage industry version of existing Web2 video games. Over time, game developers will relearn that market speculation is part of the fun and attempt to incorporate it in a healthy, responsible way.                                            
6. Web3 will continue to offer a solid niche with applications that are functional clones of existing businesses, but with some basic blockchain components. These applications will open up a niche market of users who want the same traditional core product but have a certain affinity for Web3, similar to many early Internet companies (e.g., Amazon as an online bookstore) or mobile companies (e.g., Robinhood as a mobile stock trader). They will differ primarily in their marketing and experience, not their core products. Some of these companies will, like Amazon, bet on true paradigm-breaking innovation.        
7. To cope with compliance costs and overhead, blockchain applications will increasingly rely on existing large-cap tokens to drive token-related mechanisms. Ether will continue to delay its roadmap in 2023, but once it finally rolls out fractions to reduce gas fees, user interest in other L1s will drop significantly.                                                   
8. Stablecoins will find more use cases outside of crypto capital markets, which will drive more mainstream adoption - primarily in the enterprise - as well as innovation within Web3. Research and development of government and private blockchains will continue, with some announcing centralized public infrastructures such as central bank digital currencies or market infrastructures.                                              
9. The culture war around cryptocurrencies will heat up by the end of 2023 and enter the U.S. election cycle. Booms and busts will continue, with occasional hacks (e.g. Wormhole), overly aggressive risk exposure (e.g. Terra) and outright fr*ud (e.g. SafeMoon). More politicians will take a tough stance on cryptocurrencies. However, the U.S. government will continue to be indecisive on regulation, which will be detrimental to the U.S. crypto industry. Any regulation that is put in place will be piecemeal and could still allow high-risk projects to escape the law.                                                   
10. As builders evolve in a bear market, a new growth area will begin to emerge in 2023, moving beyond existing mainstream narratives such as NFT profile picture projects, earn-while-you-play projects, alternative L1s, etc. New narratives will drive the next cycle and hopefully these new frameworks will drive true consumer utility and adoption, bringing hundreds of millions of new crypto users/wallets.

In conclusion, the uncertainty of the future also represents opportunity, and those who can adapt quickly will benefit if major changes occur.