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The bull market that the crypto industry experienced during 2021 stopped last year. For many people, 2022 was decisive and crucial. All crypto incidents like, for instance, the crash of FTX, Terra, and LUNA plus the world economic and political situation, reflected hard on the industry and bought a long bear market. That is why 2023 is important because it will give answers to important questions and direct future movements.
What Will 2023 Bring to Crypto and Blockchain?
There is no one who can say for sure what the future of this industry will be. However, there are some significant aspects that could influence the development of the sector severely and its mass adoption. 2023 promises to give answers and put cryptocurrencies in a certain position, at least for a little bit. So what are the general topics that everyone should pay attention to within the next months?
First, the regulations regarding crypto all around the world could affect the industry massively. USA regulations could set the tone for many other countries. If countries set favorable requirements, it will positively affect mass interests, improve trust, and set a quieter and calmer environment. If the regulations are aggressive and unfavorable, it could extend the bear market until a solution is invented.
Another important aspect is the mass adoption of cryptocurrencies and their usage as legal tender. So far, only El Salvador and the Central African Republic adopted Bitcoin as a legal tender. If more countries join the list, the positive effect on the industry is obvious. There are a number of countries that are speculated to adopt Bitcoin, including Mexico, Panama, and Ecuador. So, during 2023 watch out if some areas will adopt crypto in order to make better analyses and make better investments.
2023 could give an answer to another important question – if and when cryptocurrencies would be adopted by the mass-market and crypto payments would be used daily. The number of companies that allow crypto payments is getting bigger. More than 15k companies around the world accept Bitcoin, of which more than 2k are based and operate in the US. There are more than 39k Bitcoin ATMs around the world, where more than 34k are based in the US. The official data shows that in 2022, there were roughly 260,000 Bitcoin transactions per day in the US. If 2023 makes crypto payments more accessible and easy to use, this will add a level of stability and adoption.
Depending on the resolution of these problems, the crypto industry could either become mass-adopted or mass-denied.
DeFi and DAO
A huge percentage of crypto enthusiasts believe that during 2023 the main focus of attention will be placed on Decentralized Finance – DeFi and Decentralized Autonomous Organizations – DAOs. Because of their potential to improve the current traditional financial system and all of the possibilities, many people would accept them. In the last two years, interest in them increased exponentially and the deposits into DeFi services surpassed $239 billion. 2023 gives good requests for even higher interest.
This is closely related to Web3, which is also in the spotlight this year. As we know, Web3 promises a new, decentralized internet network and, of course, it is closely related to blockchain and all its products. The adoption of Web3 will practically show the advantage of decentralized systems and could possibly affect crypto interests and beliefs.
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The cryptocurrency market is also dependent on the market support of cryptocurrency exchanges, such as the FTX exchange in 2022, which had a time crash that exacerbated the decline in cryptocurrencies. Among the cryptocurrency exchanges that investors trust and choose today, Gate.io cryptocurrency exchange is a good choice, offering live prices for 1400+ cryptos and various other crypto services. It offers investors a safe and free space to trade.
Even though the trend in recent years affected the crypto industry, the overall movement and development of it follow a positive trend. All of the services and possibilities coming with blockchain became massively popular and people started to see the advantages and benefits. Most professionals are optimistic and believe 2023 will be much better than 2022.
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